> How would it help your mental health [...]

...to be told the truth? Quite a lot.

I've been inside companies that had to right-size their teams, it's not pretty, but my goodness honesty from management is better than pretending.

Because that's the truth and just because you fake empathy, the person getting fired knows what their worth to the company was. Sure there are people who don't prefer to hear the truth but most employees would. In fact, I would go as far as to say that firing someone by accepting the truth is more empathetic than lying to their faces and crying crocodile tears.

I prefer extremely direct communication because it signals respect to me.

Attempts at empathy in cases like this read to me as insulting, like how you'd speak to a toddler. I know you're lying, you know you're lying, and now I have to pretend like I don't know you're lying. It's one more indignity of status being used against me and demanding I play a part and accept the lie, primarily for their ego.

Whereas directness feels more equal to me.