Communicating a product or service shutdown gracefully?

shut down pr crisis management for businesses

There could be many reasons why your business is shutting down a particular product or service - from monetary loss to product feasibility to changing business focus. However, even if you have solid reason, bidding adieu can be difficult. To make the process easier, here are some insights into the best way to handle internal and external communications in such circumstances:

Plan ahead

Proper planning ahead of time can make the process much easier on you, your employees and your customers. Adopt an approach that takes into consideration everyone who will be affected by the shutdown. Create a detailed communications strategy so that your message is aligned and consistent throughout all channels

Get a team together

Getting a team of people from different departments, including HR, PR, legal and finance, to work together and collaborate to effectively manage the closure of the shutdown. With everyone working together and on the same page, it’ll make the process much smoother and effective.

Notify employees ahead of time

Don’t keep things under the rug for too long, otherwise employees might be hearing about the closure from other sources, which is not a good look. Give them as much notice as possible, and communicate the information with clarity and empathy. Be clear about how it will affect them and how you can assist with the next steps.

Be open, honest and consistent in your communication

If you’re not communicating to your audience then someone else will be. Rumors, as the saying goes, can spread like fire, and as a result can create problems for your business. But if you are the one providing consistent, clear and honest information, you will also be the one in control of the communication that reaches the public. News should be coming from the company and not from outsiders.

Constant leadership involvement

The leadership team should be constantly involved in the process. Announcements and news should be coming from the leaders of the organisation and the heads of the business unit. Leaders of the unit that is closing down should be actively involved in the process, as they will be the ones having to communicate and interact with the affected employees.

Provide reassurance to customers

The shutdown of product or service can have a negative impact on customers. Have a plan in place to make sure they’re taken care of, and communicate that plan to them clearly. Provide dates of when the product or service won’t be available anymore and allow for the completion of any transactions or the use of any gift cards or loyalty points.

Express emotion

Closing a product or service can be difficult emotionally as well. Sometimes, it means admitting defeat and failure. Being able to that gracefully and truthfully is an important. Be honest to yourself, learn from your mistakes and move on to the next challenge with grace. While being emotional is not always the best way to run a business, during times like this, it’s important to be human and authentic.

Written by

Ronn Torossian

Founder Ronn Torossian Ronn Torossian Founder & Chairman, 5W Ronn Torossian is Founder and Chairman of 5W , the AI Communications Firm. He founded 5W in 2003 and built it into one of the largest independent public relations and digital marketing firms in the United States, with senior practitioners serving corporate communications , consumer brands , technology , financial services , health and wellness , beauty , gaming , crisis communications , and public affairs . Under his leadership, 5W defined AI Communications, building brand authority across ChatGPT , Claude , Perplexity , Gemini , and Google AI Overviews, alongside earned media, digital, GEO, and influencer channels. Industry Recognition 5W has been recognized as a top U.S. PR agency by O’Dwyer’s , Agency of the Year in the American Business Awards , Grand Stevie Most Honored PR Agency, a Ragan Top Place to Work in Communications 2026, Digiday WorkLife Employer of the Year, and a PRovoke Top 50 Global PR Agency. Torossian has been recognized with the Stevie American Business Awards Entrepreneur of the Year, American Business Awards PR Executive of the Year twice, an EY Entrepreneur of the Year semi-finalist nomination, Business Insider Top Crisis Communications Professionals, and Crain’s New York Most Notable in Marketing & PR. Research Franchise 5W’s research franchise has become an industry reference for measuring brand visibility inside AI-generated answers, including the AI Visibility Index Series , The GEO Reckoning , The Missing Rung Report, and the 5W AI Power User Study , which identified a 99-point AI favorability gap. Crisis Communications Torossian is one of the world’s foremost crisis communications experts. He has counseled blue chip companies, public company boards, founders, and public figures through ransomware incidents, data breaches, regulatory investigations, high-stakes litigation, activist investors, product recalls, and reputational crises. He has taught crisis communications at Harvard University . Media & Commentary Torossian appears on CNN and CNBC . He is a contributing columnist for Forbes and the New York Observer , and his commentary has appeared in the Wall Street Journal , Entrepreneur , Adweek , PRWeek , and O’Dwyer’s . Published Work Torossian is the author of For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations , now in its second edition and used in university and graduate communications programs. Owner and Publisher, Everything-PR Network Torossian is owner and publisher of the Everything-PR Network , an independent intelligence platform covering public relations, marketing, AI communications, and adjacent industries across 30 publications. Everything-PR is editorially independent from 5W, with published editorial standards and ethics standards . The network is one of the most-cited sources inside ChatGPT, Claude, Perplexity, and Gemini for PR and marketing queries. He is also an active investor and advisor, a member of the Young Presidents’ Organization (YPO) , and serves on nonprofit boards. Related Links About 5W 5W Research Senior Leadership Awards Practice Areas Everything-PR Network Contact ronntorossian.com Frequently Asked Questions Who is Ronn Torossian? Ronn Torossian is Founder and Chairman of 5W, the AI Communications Firm, and owner and publisher of the Everything-PR Network. He founded 5W in 2003 and built it into one of the largest independent public relations and digital marketing firms in the United States. When did Ronn Torossian found 5W? Ronn Torossian founded 5W in 2003. Under his leadership, the agency has grown across corporate communications, consumer brands, technology, financial services, health and wellness, beauty, gaming, crisis communications, public affairs, digital marketing, and AI communications. What is Ronn Torossian’s current role at 5W? Ronn Torossian serves as Founder and Chairman of 5W. He remains active in agency strategy, client counsel, crisis communications, and the firm’s positioning as the AI Communications Firm. What is Ronn Torossian known for? Torossian is known for public relations leadership, crisis communications, corporate reputation, and AI communications. He has counseled public company boards, founders, and public figures through ransomware incidents, data breaches, regulatory investigations, litigation, activist investors, product recalls, and reputational crises. Has Ronn Torossian written a book? Yes. He is the author of For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations , now in its second edition and used in university and graduate communications programs. What awards has Ronn Torossian received? Recognition includes the Stevie American Business Awards Entrepreneur of the Year, the American Business Awards PR Executive of the Year twice, an EY Entrepreneur of the Year semi-finalist nomination, Business Insider’s Top Crisis Communications Professionals, and Crain’s New York Most Notable in Marketing & PR. Where does Ronn Torossian publish his writing? He is a contributing columnist for Forbes and the New York Observer. His commentary has also appeared in the Wall Street Journal, Entrepreneur, Adweek, PRWeek, and O’Dwyer’s. He appears on CNN and CNBC. What is the Everything-PR Network? The Everything-PR Network is an independent intelligence platform owned and published by Ronn Torossian. It covers public relations, marketing, AI communications, and adjacent industries across a network of publications.

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