15 Ways to Handle Startup Layoff's Effectively :
Don't promise or imply lifetime employment
Consider other alternatives for cutting workforce costs
Consider other alternatives for cutting overall costs
Consider other ways to generate revenues
Be Honest with your Startup Team
Make sure your decisions are non-discriminatory
Inform Employees Privately
Consider Timing - Probably at the end of the work day
Prepare to console & count on bearing the brunt of some angry reactions
Offer Outplacement help
Negotiate a fair severance package.
In case of trouble, ensure the security of the rest of the work force and for corporate assets
Escort the employee(s) laid off to the exit of your Startup premises
Conduct a meeting with the rest of the Team
Avoid signs of extravagant spending following layoffs.