On a hybrid project building a travel app, new travel restrictions make many features and the solution unusable for many customers. What should the project manager do first?

The project manager's first step should be to assess the environmental changes and recommend a pivot for the project. New travel restrictions represent a significant external change that directly impacts the project's viability and value. Before making any drastic decisions, the project manager must understand the full scope of the impact and explore potential alternative strategies or adjustments (a pivot) to still deliver value. Releasing the team or pausing the project prematurely without a thorough assessment could lead to lost opportunities or a premature termination of a potentially salvageable project. While consulting organizational management is important, it should follow an initial assessment and a proposed direction, rather than being the immediate first step.