1.Be honest and straightforward about the real issue and make certain the appropriate individuals take the consequences2.Explain the available courses of action and why the option selected was most appropriate3.Make cuts consistent with historical performance criteria4. Create a program to help terminated employees find new employment and deal with feelings of rejection5.Communicate openly and put central ideas in writing to make them clear.6.Establish and communicate the strategies being implemented to avoid layoffs from happening again7.Establish contingency funds and encourage employee participation to minimize the need for distrust./