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Ughhhh! I'm so sorry you're even having to go through this. This is the absolute worst part about management. I always approach these things with honesty and a hint of emotion. We're human, and anger is a normal emotion, it just needs to be extremely well controlled. I may be the unpopular opinion, but I actually like to address exactly what I'm afraid of. "Listen, I know this is discouraging, but this is our gameplan [fill in the blank]." Trust me, if you're feeling it, your team is, too.
Rip off the band aid. We're going through this right now, and we know the layoffs are coming. The worst thing our manager did was try to spin it as a positive because there is no way for that to come across as anything but fake and unsupportive. Let them know that the budget has been cut, you don't know yet what that means for the team or the future, but for now the changes are X and X and we need to keep focusing on doing the best work we can.
Just be honest with them. Tell them what you know, and admit if there is information you do not know. This is one of the worst parts of managing a team, delivery of bad news, so i understand how you feel. Good luck.
Mentor
Transparency is the best policy. If you can connect this to any largest strategy or business condition it might help people feel that it’s not personal.
Also remember, startups outpace large corporations while having scarce resources. They are scrappy, motivated and creative. It might be cliche but maybe you can rally around ‘act like a startup’
Has anyone in here ever had their budget increased? I swear marketing budgets only get cut and are always first on the chopping block. It's maddening. If it was me, I would just rip the bandaid, provide total clarity and empathize with them. I think it's perfectly fine to let some of your frustration show. I think that'd make them feel like you're on their side and part of the team, not just a robotic messenger doing corporate's bidding.
Keep it short