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Making employees understand the tough times is the objective for such communication.
Keep employees updated very often during this period...as lots of anxiety exists with employees. Let them not get in to rumours which will spread in the organizations. Keep them informed well in advance so that they can be clear in their doubts.
Also, if organization is looking for cutting down employees, give voluntory updates at right times. This gives them no surprise and they will have sufficient time to find job. They will be prepared to recieve tough messages.
When you are giving negative feedback to any person, be well prepared with all the details, give them clear information, be firm, never get lost in discussion, be empathetic to employees feelings and try to convey the message with right context.
Understand and listen to what they are going through and their struggles, if possible help out when you can, otherwise just listening and advice when possibe, listening helps the most. If the concerns are too great especially with regards to upper management, maybe the issue needs to raised and thought throught to see if many employees feel the same, in order to take action to sort out the negativity.
Show leadership - Leadership is about communication and therefore it is vital to be candid with employees about what is known and also what is uncertain.
Build on strengths - Emphasize the values of employees that have enabled the organization to achieve its current position. Find some past stories about how the organization successfully coped with past economic downturns and tell how teamwork enabled the organization to ride through its problems and can be done again.
Show your leadership, Update information to the employees as early as possible, Tackle issues as a team and Be helpful.
Updating , them , every, day to day activities, of the business, and making them understand, in clear message.
