Managing bad news is a multi-step process. If you can't lead people through bad news - you can't lead.   

The steps  

• Accept your role 
• Manage your coping 
• Deliver the message 
• Let people vent
• Be empathetic 
• Listen for thinking traps 
• Help people reframe the situation 
• Help your team cope 
• Deal with rumors & gossip 
• Refocus on common goals 
• Hold people accountable