What did I learn from being laid off 7 times? Steph Thommen shares expert insights on Fractional HR and managing layoffs in tech startups

An in-depth conversation with Steph Thommen, Fractional Head of People at

purposeful.tech and Chief People Officer at MythicHire, about revolutionising tech startups

HR practices, managing redundancies in fast-growing tech companies, and supporting Gen

Z employees throughout the offboarding process.

Steph Thommen, Fractional Head of People at purposeful.tech.

With over 18 years of experience in tech startups in customer success and now people

operations, Steph Thommen has become a leading voice in fractional HR services, redundancy management, and people-first culture development specifically for tech

companies. Having personally experienced seven layoffs and managed numerous

organisational restructuring processes in the tech sector, she brings unique insight to

supporting employees through difficult transitions in fast-paced startup environments.

Currently serving as Fractional Head of People at purposeful.tech and Chief People Officer at MythicHire, Steph has helped numerous tech startups scale from small teams to hundreds of employees while navigating the challenges of managing multi-generational and multi-cultural teams and implementing effective offboarding processes in technology companies.

Q&A: Fractional HR, Layoff Management, and Tech Startup Workforce Challenges

Q: What exactly is fractional people operations, and why are tech startups turning to this model?

Steph: Fractional people operations is essentially providing strategic HR leadership on a

part-time basis for tech companies that can't afford or don't need a full-time people function yet. At Purposeful.tech, I offer three main service areas: a six-month Fractional Head of People partnership where I align business strategy with people strategy, Operating System Design workshops for leadership teams, and Power Hour consultations for specific people problems.

Tech startups are embracing this model because they can implement people systems twice

as fast as a full-time hire at half the cost. It's perfect for tech companies in that growth phase where they need strategic HR guidance but aren't ready for a full-time executive. The tech sector moves so quickly that startups need agile HR solutions that can scale with their rapid growth cycles.

Q: You've helped scale tech startup teams rapidly - can you share an example of successful team growth?

Steph: I recently led the growth of an e-commerce tech startup from 230 to 500 employees

in just 15 months. The key was creating scalable frameworks and what I call a "people operating system" as they were entering hyper-growth. This meant establishing clear decision-making processes, cultural guidelines, and performance management systems that

could handle the increased complexity typical in fast-growing tech companies.

The secret is in creating the infrastructure that allows new team members to integrate

effectively while maintaining the company's core culture and performance standards. Tech startups face unique challenges because they're often hiring specialised technical talent in competitive markets while maintaining the agility that makes them successful.

Q: What do you mean by "people-first philosophy," and how does it actually benefit

businesses?

Steph: I had worked with a CEO who wanted shareholders to come first, and I explained the

reality: shareholders can only be happy if targets are hit, targets can only be delivered if

customers are happy, and customers can only be happy if employees deliver on the

business promise. It's a chain reaction that starts with employees.

When we put people first, we create environments where talent thrives and contributes to

achieving business goals. HR is not just fluffy, it’s a practical business strategy that drives

measurable results.

Q: How do you define and build company culture in tech startups, especially during rapid scaling?

Steph: I define culture as "how we do things around here."It describes how employees relate to each other and how the organisation makes decisions. It's essentially an operating

system for the business that provides an actionable framework tailored to each startup.

Working with tech startups, we focus on clarity, purpose, belief, ownership, visibility, and

recognition as key elements for keeping teams engaged. The challenge is maintaining these

elements even during rapid change while preserving the innovation and agility that tech

companies need to compete. Tech startups have the unique advantage of being able to

build culture from the ground up, but they also face the challenge of maintaining it through

multiple funding rounds and rapid team expansion.

Q: You've experienced being laid off seven times personally. How does this inform your approach to layoffs, redundancy, and outplacement services?

Steph: Those experiences gave me deep empathy for what employees go through during

redundancy processes. My first layoff was completely unexpected. I was very junior and

didn’t get how things worked. That uncertainty and emotional impact never left me. The 7th redundancy drove me to work fractionally. It gives me more control over my career and the

impact I can have on my clients.

Yet I've been on all sides of this process. As a manager, I've had to lay off team members I'd

built strong relationships with and developed into high-performing teams. That's incredibly difficult when you've invested in someone's growth and suddenly have to let them go due to business circumstances beyond their control.

As an HR professional, I've handled layoffs in various scenarios, from individual redundancies to entire company closures. I've dealt with angry employees who feel betrayed, confused team members who don't understand the business rationale, and devastated high performers who never saw it coming. Large or small, I always find redundancies challenging because, working with smaller teams, I had built good relationships with many of those affected.

Now, when I help tech companies with layoffs, I emphasise the human element alongside the legal requirements. We discuss "survivor's guilt" and "survivor's fear". The remaining

employees need just as much attention as those leaving. I always advise tech startup

founders that layoffs typically lead to an additional 15% of employees leaving voluntarily,

often the best performers.

The key is having a comprehensive offboarding process that supports team members

beyond the severance package. The teams I worked with were not aware of the support an

outplacement service can provide, and now I understand it better; I will make sure to

introduce it in the future. This is especially important for more junior employees who may

be experiencing their first or second job loss and need additional emotional and practical

support navigating the job market.

Q: What's your approach to outplacement and supporting employees during difficult transitions?

Steph: I like the idea of outplacement because it goes beyond just providing a severance

package. Traditionally, I have worked with investors to create lists of available employees

and their skills to share within their portfolios, and that usually leads to good outcomes for

team members. I’m happy to make introductions in my network when requested, and I also

help former employees with resume reviews, interview preparation, and career coaching, often on my own time.

The offboarding process needs to be particularly thoughtful for more junior team members,

who may be experiencing their first major career setback. They need additional emotional

support and practical guidance on navigating the job market. From what I understand of

services such as Jobago, digital outplacement services can provide accessible, self-service

support that they are comfortable with.

The key is clear communication throughout the redundancy process. Many employees don't

fully understand concepts like equity and vesting, so we need to explain these clearly during

onboarding and reiterate them during redundancy conversations. This is especially crucial

for employees who may not have experience with stock options.

Q: How do you manage the unique challenges of younger employees in tech startups during layoffs and career transitions?

Steph: Younger employees face unique challenges during redundancy processes. For many

in the current market, this might be their first or second job loss. They're often dealing with

higher anxiety levels around career security in an industry known for volatility. They're also

more likely to share their experiences on social media, which can significantly impact a

company's reputation and ability to recruit future talent.

The key is providing comprehensive offboarding support that meets their digital-first

expectations. This includes clear communication through their preferred channels, access to

the tools that will help them in their search, such as digital outplacement, and understanding

that they may need more emotional support than more experienced team members,

especially when transitioning between tech companies. We must balance the effectiveness

of the system with personal support.

Younger employees in tech also have different expectations around transparency and fairness. They want to understand not just what's happening, but why it's happening and

how decisions were made. They value authenticity and will call out inconsistencies, so your

redundancy process needs to be genuinely fair, transparent, and well-communicated. In the

tech sector, where employer branding is crucial for talent acquisition, poor layoff management can seriously damage your reputation on platforms like Glassdoor and

LinkedIn.

Q: How do you handle the legal complexities of international layoffs and

redundancies?

Steph: This is increasingly complex as startups often have global remote teams. I've had to

learn legal requirements across countries like France, Germany, India, the Netherlands, the

US and Germany. In complex jurisdictions like France and Germany, we always seek local

legal advice.

For example, in the Netherlands, redundancies require employee agreement if they have a

permanent contract. In France, severance is based on length of employment but with higher

payouts than in the UK. The key is understanding these differences and planning accordingly; sometimes extending timelines from one month to three months for safety.

International offboarding also requires understanding cultural differences in how layoffs are

perceived and managed. What works for the US might not be appropriate in European markets where there are stronger worker protections and different expectations around

career transitions. In any case, when able, I prefer running the same process for everyone,

taking the highest standard as a model.

Q: How has technology transformed recruitment and people operations beyond traditional approaches?

Steph: At MythicHire, we're working on replacing traditional CV-based recruitment with skill-focused hiring systems. Instead of relying on CVs, we understand what candidates can

actually do, both inside and outside of work. Then, based on their skills, we identify the top 10 candidates for interviews.

The industry recognises that CV-based recruitment has limitations, and various solutions are

being explored, yet no one has cracked the code so far. Technology helps us focus on

capabilities rather than the traditional presentation of credentials, which is especially

important for startups looking for versatile, high-potential talent.

This approach is particularly relevant for candidates who may have a non-traditional career

paths or portfolio careers that don't fit neatly into conventional CV formats. Skill-based assessment allows us to identify tech talent that might be overlooked by traditional screening methods, especially important in a sector where practical coding ability often matters more than formal credentials.

Q: What common mistakes do you see tech startups making with their people operations?

Steph: The biggest mistake is moving too fast without clear foundations, which is especially

problematic in tech startups where the pressure to scale quickly is intense. Tech companies

need to balance speed with clarity to avoid team frustration and disengagement. I often see

tech startups hiring reactively rather than strategically, which leads to less defensible decisions if challenges arise later.

Another common issue is not preparing for the emotional and practical aspects of rapid

growth. Teams can feel lost in the chaos of scaling without proper frameworks and communication systems in place. This is especially challenging with Gen Z employees in

tech who expect regular feedback and clear career progression paths.

When redundancies do become necessary, tech companies often haven't invested in proper

offboarding processes or outplacement support, leaving employees feeling abandoned and

potentially damaging the company's reputation on social media. In the tech sector, where talent acquisition is highly competitive, poor layoff management can seriously impact your ability to hire top performers in the future.

Q: How do you help tech startups attract and retain talent in competitive markets?

Steph: It starts with seeing people beyond their current roles and recognising their talents

and aspirations, which is crucial in tech, where skills evolve rapidly. I help tech companies

create environments where employees can grow and contribute meaningfully to business

goals while staying current with technological advances.

Clear communication about equity, career progression, and company vision is crucial for

tech startups. Many employees don't fully understand their equity packages, especially in

tech companies where stock options are a significant part of compensation. We need to

educate them about the potential value and the risks involved.

Tech startups also need to be transparent about the realities of startup life - the potential for

rapid growth and success, but also the possibility of layoffs or pivots. More junior employees

particularly value this transparency and will research companies' redundancy practices before accepting job offers, making ethical layoff management a competitive advantage in

tech talent acquisition.

Q: What advice would you give to tech startup founders considering fractional HR services?

Steph: Consider fractional services when you need strategic guidance but aren't ready for a

full-time executive. It's particularly valuable for tech startups during scaling phases or when

you're facing specific people challenges that require experienced expertise in the tech sector.

The key is finding someone who understands tech startup dynamics and can implement

tailored systems quickly. Look for practitioners who have been through multiple scaling

experiences in tech companies and understand both the strategic and tactical elements of

people operations in fast-paced environments.

Tech startups have unique challenges around equity management, remote team coordination, and managing technical talent that require specialised knowledge. A fractional

HR professional with tech experience can help you navigate these complexities while building scalable systems for future growth.

Q: What trends do you see shaping the future of tech startup people operations?

Steph: I'm seeing a shift toward more flexible working arrangements and questioning of

traditional employment models, which is particularly pronounced in the tech sector, where

remote work is already common. The gig economy is rising, and people are reconsidering

what security and learning opportunities look like in traditional employment versus project-based work in tech.

There's also increasing focus on mental health and employee wellbeing, especially in remote

work environments where emotional cues are harder to detect. Tech companies need to be

more intentional about supporting their teams' needs, particularly as they navigate the stress

of rapid scaling and market volatility.

Gen Z employees are talented and switched on and they drive demand for better support in

their career, be it during onboarding or offboarding. They expect companies to take responsibility for supporting career transitions, not just during layoffs but throughout the employee lifecycle, which is when outplacement services become even more relevant. This

generation is also more likely to research tech companies' reputation as an employer before

accepting job offers, making ethical layoff management a competitive advantage in the fight

for tech talent.

Key Takeaways

● Fractional HR services provide strategic expertise for tech startups at a fraction of the cost of full-time executives

● People-first philosophy creates a chain reaction that ultimately benefits shareholders in competitive tech markets

● Scalable systems are essential before rapid team growth begins in tech companies

● Cultural frameworks must be designed to survive and thrive during scaling while preserving tech startup agility

● Digital outplacement services make career transition support accessible and cost-effective for tech companies

● Gen Z workforce management in tech requires enhanced transparency, digital-first approaches, and comprehensive offboarding support

● Tech startup redundancy processes must balance legal compliance with emotional intelligence and reputation management

● International layoff compliance requires local expertise and extended timelines for global tech teams

● Skill-based recruitment offers alternatives to traditional CV-based hiring for modern tech talent acquisition

● Employee support during tech layoffs should include both severance and comprehensive outplacement services to maintain industry reputation

Steph Thommen is the Fractional Head of People at purposeful.tech and Chief People Officer at MythicHire. With over 18 years of experience in tech startup people operations,

she specialises in helping tech companies scale their teams while building strong, sustainable cultures. Having personally navigated seven layoffs and managed numerous

redundancy processes in the tech sector, she brings unique expertise to outplacement services and supporting Gen Z employees through career transitions in technology

companies.

Connect with Steph on LinkedIn for more insights on fractional HR, tech startup layoff

management, and modern workforce strategies in the technology sector.