I think this must be one of the most stupid things an employer can do. The staff won’t say anything, but the bond of trust will be damaged, if not broken for ever.
An example – a local firm had decided to move offices from one town to another. The staff aren’t stupid and had more or less worked this out. When the bosses have lots of meetings behind closed doors its obvious something is going on.
The employers needed to tell the staff. Instead of saying, “please all come to a meeting tomorrow” they said “come to a compulsory training session tomorrow”. When they duly turned up they were told the office would be closing.
If they can lie about one thing (where frankly there was no need to lie) how can the staff trust them not to lie about others.
One of my resolves is to be as honest and open as I can be about everything, including how much money I do (or don’t) make. It will be interesting to see if I start getting more secretive as I get more successful. I hope not.