While our language should, at a certain level, convey sensitivity and equality, it should not hide the true meaning of something. That actually is entirely counter-intuitive to the purpose of language.
For instance, let's look at the term "fired". This is a word that carries meaning, and in no uncertain terms conveys exactly what is happening to someone's job, and all of the issues and problems that go along with it. It has power, and it has meaning.
Now, it may not accurately describe the situation when, for economic or any other reasons, a company is eliminating jobs to improve their bottom line. "Fired" means that you did something wrong and were told that you don't work somewhere any more, and its your own fault. OK, we need something else to describe when its not your fault, to take some of the sting and stigma away. So we have, "laid off".
Laid off has its own connotations, and none are really all that positive, but still, it has a little less stigma attached. Apparently, though, some senior executive somewhere felt that it wasn't watered down enough, especially in a situation where through mismanagement or a simple desire for lowered expenses, positions were eliminated. So this guy, probably from New York (because that's what they do there) came up with a new term that made executives feel better about taking away people's livelihood: down-sizing.
This, too, is not a bad term as it still describes what has happened, but it carries with it that the company may be scaling down production to meet a different customer need. Unfortunately, this is rarely true; this usually means that the people who are left will simply have to work harder to meet the same goals. However, it could be possible that the company was simply over staffed, as is wont to happen.
Some time in the last few years, the terminology took a side-step to a new term: right-sizing. See what they did there? They put a positive word in there: "right". "Its not so bad, is it? We're just making the company be the correct size. Oh no, that size does not include you." Once again, someone added a level of banality to what is a negative thing for the people affected and tried to make it more palatable for public consumption.
Yesterday, I have heard my absolute favorite bastardization of this term: "selected in a resource action". Wow. George Orwell could not have written a better Newspeak term for losing your job. A small sliver of positive thinking buried under a load of nonsensical action. Woo-hoo! I've been selected! Do not pass go, do not collect $200.
Its this kind of approach which allows the less-adept (dare I say, "inept"?) leaders to make this disturbing decisions that they make, to not engage in positive employee development as they should. Communication is a tool used to expand and spread ideas, not obfuscate them.
Is there something to be said for directness. Yes. Is there something to be said for taking a more tactful, sensitive approach? Yes. Communication should fall somewhere in the middle of these two extremes, but if it is ever in question, one should cheat to the direct side a little more. It leaves less up for interpretation and confusion, and I guarantee, the results will be much better. It also shows that you are unafraid to stand by your decisions and beliefs and will face down challenges eye to eye.
And quite frankly, couldn't we use a little more directness from our leaders, now more than ever?