Most managers do not lose trust because they deliver bad news. They lose it because they deliver bad news like a mugging: sudden, opaque, and with a perpetrator who is oddly proud of themselves.
You have seen this species of manager. They deliver announcements with a corporate subject line ("Update"), a calendar invite that hides the purpose, and a tone that mistakes detachment for professionalism—but don't worry, you can bring a support person to the meeting, so long as they are on mute. The room goes quiet. Someone's identity—role, status, competence, future—is now under review. And the manager, sensing the danger, reaches for the two most reliable vices in corporate life: vagueness ("we're exploring options") and theatre ("this is hard for me too"). Neither reduces fear, instead both compound it.
This is because trust is not a sentiment. It is the capacity to deliver sound judgement under pressure—a willingness to be vulnerable based on perceived ability, benevolence, and integrity. When the news is bad, you are asking people to accept vulnerability immediately. If you cannot explain yourself credibly, you will be treated as a risk, not a manager.
A useful way to think about this is Robert Sutton's long-standing point that "toughness" is often a euphemism for needless harm: managers cut deeper than necessary to look decisive, or to imitate competitors, or because they are bullies and they can. The result is not moral seriousness; it is ego maintenance dressed as discipline. And it fails even on pragmatic grounds: perceptions of fairness strongly shape how people respond to layoffs and other negative outcomes—especially how decisions are made and how they are communicated.
Yet a deeper error also exists. That is to treat bad news as a transaction ("announce, explain, exit"). It is not a transaction, it is an authority test. Authority, properly understood, is not the ability to compel. It is the ability to secure consent through reasons that can withstand scrutiny. To revisit my usual hobby horse: managerialism is what happens when authority declines and power fills the vacuum—control without a convincing justification, and communication degraded into compliance rituals.
That framing matters because bad news threatens three things at once: security, meaning, and dignity. If you handle any of these badly, the content of the decision becomes secondary to the emotion and tangible impact of the insult.
Bad managers treat difficult conversations as a data dump: marshal the "facts", deliver them cold, and mistake bluntness for courage. Because they feel no discomfort—or barrel on precisely because they do and doubt their own competence—they assume everyone else is impressed. In practice, they don't build trust; they leave a wake of damage.
What People Actually Need when the News is Bad
Sutton's practical formula is deceptively humane: when delivering bad news, people need predictability, understanding, control, and compassion. Those are not soft needs. They are the conditions under which adults can stay rational when under threat.