How should a Project Manager communicate to his team about project failure

Question

Project teams are engaged in the project to meet its aim. However, for reasons not in control of the project team, projects fail.

How should a Project Manager convey this to his team? How should he ensure he keeps the trust of the team?

Answer 1

Emotional intelligence is critical in these situations. 

A business reorganization or legislation change can make a project no longer viable, and despite no fault of the team, the people on that team will soon need a new job. 

Sudden change is hard on employees in many ways. 

When you are communicating with the team about the project termination, you must acknowledge that this may disrupt some people on your team.