Sometimes the thing you want to face the least is the most important one to discuss… So let’s do it. It’s time to talk about mass layoffs.
At the beginning of December, CNBC reported that January through November of 2025 resulted in over 1.1 million layoff announcements—the highest number our country has seen since 2020. You’d be hard-pressed to find a person working in the United States today who doesn’t know at least one person affected by layoffs over the past five years… in fact, we all probably know someone who has been laid off per year since 2020. It’s become something we discuss in the corporate world similar to the way we talk about other crummy inevitables, like flu season or the strained management of childcare during the summer.
Is that the way it’s always been, though? History tells us that mass layoffs are actually relatively new in the grand scheme of work, with Bloomberg reporting that in 1979, less than 5% of US employers announced a layoff. HR Brew looked into the rise of layoffs over the last ~45 years, finding that this modern problem has progressed in a “frog in boiling pot” fashion, though Covid-19 (and the years since) have undoubtedly made it clear that yes, the water is definitely boiling.
The Vibes Have Officially Shifted
What kind of impact, then, does the “boiling water” of a mass layoff culture have on your team? Psychology Today would argue that because work has such an impact on our finances, our sense of purpose, our identities, and more, there are major psychological effects from working in a culture that threatens surprise unemployment at any moment—especially when there are reminders in the news, in conversations with our friends, and (perhaps most commonly) in our LinkedIn feeds. Make no mistake, the prevalence of layoffs is causing a “vibe shift,” as CNBC calls it. And it’s very likely that the vibe shift has impacted your own team.
How does this manifest itself on a day-to-day level with your team members? It might surprise you: The presumed result would be that employees would hustle harder, attempting to outrun any accusations of low performance as a form of protection. However, this won’t be everyone’s natural response. For many, the thought of giving 110%, only to be laid off in economic uncertainty, is going to be a natural de-motivator—especially amongst employees who themselves have been laid off from a previous job. As we mentioned, there is a true psychological impact from layoffs, and the fear of it happening again is not going to disappear overnight. With that said, if your team members seem less motivated or more entitled than in years past, consider mass layoffs a contributing factor.
Building Trust in a Time of Mass Skepticism
As long as mass layoffs keep showing up in the headlines, it’s safe to assume that “mass skepticism” is going to show up in the workplace. So, what do we do about it? Our team has put together a few ideas for how to handle the psychological impact on your team.
- Name the reality. Let’s be real: “Doing nothing” is not an option. Silence creates stories, and with the constant barrage of mass layoff headlines, employees will fill in the gaps if leaders don’t. Instead, make it your job to explicitly acknowledge the current climate, and then explain how your organization is navigating it.
- Understand Why Loyalty Looks Different Now. We all know that major cultural moments impact the psyche of entire generations—and although this one has been gradual, it absolutely impacts how an employee views a “normal” relationship with their employer. If you entered the workforce in the 70s, 80s, or even 90s, your likelihood of receiving a pension, competitive pay, and protection from unnecessary layoffs was much higher. Today, those are not promises offered by your average employer, which means that loyalty from new hires won’t be as high (Simon Sinek has an excellent perspective on this). With this in mind, look at the generational landscape on your team, and consider how this cultural milestone may be impacting their view of “loyalty.”
- Shift from Assumptions to Structured Listening. The generational trends are a helpful starting point—but every person on your team is an individual with their own lived experiences, and those play a role, too. How can you start conversations with your team to learn about their attitudes surrounding layoffs and company loyalty? The key here is structure; yes, asking questions is powerful—but only when leaders know what to listen for and how to respond. Facilitated conversations and clear feedback loops ensure that conversations around employee psychology create clarity (rather than anxiety).
- Make Trust Tangible. Trust isn’t built through reassurance alone, but through repeatable systems that your team can rely on: Clear expectations. Fair decision-making. People-first policies. There are always going to be forces that you have to paddle against, be they personal, generational, or circumstantial. However, it’s important to recognize that loyalty is a two-way street, and that in today’s corporate landscape, blind loyalty from your team is nearly nonexistent (Our podcast guests from Morning Brew Inc. had some great thoughts about this). See this as a challenge to be the one to rewrite the narrative by creating trust. If an employee asked, “Why should I trust this company?” could your answer be specific, consistent, and provable?
The Takeaway
Rebuilding trust in a layoff-heavy world isn’t about controlling external forces (because let’s be honest… we couldn’t even if we tried). It’s about strengthening the internal systems that help people feel informed, protected, and valued. That work doesn’t happen accidentally—it requires leaders willing to evolve (that’s where you come in), intention, and data. And here’s the good news: every single leader today is navigating this same climate. If you can be one of the few who rebuilds trust, you’re way ahead of the curve.
Did you like this week’s post? Then you might like these posts below.
The 2026 Workforce Trends Playbook
Your Team Isn’t “Burned Out”—They’re Starving for Clear Expectations
What’s Next?
If your team is navigating generational friction, stalled performance, or culture misalignment—it’s time to take action.
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