Supporting your team when your project gets cancelled

In my role, I regularly connect with people seeking their next career move. While some departures are elective, many people are introduced to me having been unexpectedly displaced from a role.

We all know this type of restructuring is pretty common right now as organisations pivot strategy and continue with cost-out measures. Unfortunately, this often results in projects being unexpectedly cancelled as priorities shift. Work that was diligently and passionately invested in is paused, and teams that have forged strong bonds are dispersed to new initiatives, or exit.

This abrupt ending sits in contrast to successful project closes which are known in advance, with the familiar hallmarks of promotions, bonuses, celebrations, and that sense of completion. People are energised and ready for their next project challenge. When a project is cancelled suddenly, it’s not just the work that’s lost; it’s the sense of progress, purpose, and potential that vanishes with it.

Good project leadership means stepping up in these moments. As we move through this economic cycle (which those of us with longer memories know will eventually pass), I’ve gathered some thoughts on how effective project leaders can support those impacted by these sudden changes.

Redirect Energy  

There’s often an awkward pause while team members pivot to new roles or structures. Your first priority is to be clear on what’s absolutely required to close things out. But equally avoid assigning busy work for the sake of it. Use this downtime to foster intentional growth, and avoid disengagement for you and your team.

Take the time to genuinely understand what your team members are interested in. Use your experience and influence to align their next steps with those interests where possible, or help them seek out training and certification opportunities. These may not even require budget allocations – there are myriad low cost and free training options out there (AWS, GitHub, Stanford AI). This turns uncertainty and negative space into a chance for development.

Help Preserve Ambition

Don’t let the team's ambitions become collateral damage. Ask your team members to reflect on what they hoped to achieve in the cancelled project. Help them capture those aspirations in an appropriate place, like an updated development plan or a personal vision document, and coach them on how to use it to guide future work. After all, they may shortly have a new leader who’ll be interested in knowing these details. This keeps their motivation alive and reminds them that their professional goals still matter, regardless of any recent setbacks or changes.

Don’t Underestimate Personal Connection

When things end, the need for human connection is really important. And in our current hybrid work based environments, isolation can quickly be someone’s reality. A quick check-in over coffee or a short, sincere chat can go a long way. Ask how they’re genuinely feeling, acknowledge the disappointment and loss, and offer support. These moments build trust and show that your care extends beyond the project deliverables.

While these actions may not be in any official project manager playbooks or methodologies, they’re the ones your team will remember. Empathetic leadership between projects helps teams recover faster and return to high performance once things inevitably fire up again. And when the next challenge comes and you need them, you’ll find them ready and loyal.