Layoffs are no longer one-off events but an increasingly routine feature of modern work, according to a new global workforce survey released by LHH, which warns that both employees and employers are struggling to adapt to constant change.
The study, based on surveys of more than 11,000 workers and HR leaders, found that 87% of organisations have recently conducted layoffs or are considering them within the next year, marking a sharp rise from previous years.
Rather than being driven solely by cost-cutting, layoffs are now tied to ongoing shifts in skills and business needs. Around 78% of HR leaders said workforce reductions are becoming regular occurrences, often linked to “right-skilling” efforts as companies adapt to market pressures.
Artificial intelligence (AI) is emerging as a notable factor, cited by 21% of HR leaders as a driver of layoffs. However, the report stresses that AI is not acting alone. Skills mismatches were cited at the same level, suggesting that the inability of workers to keep pace with changing requirements is just as significant as automation itself.
While concerns about AI are widespread — more than half of workers fear it could replace them — the report notes that the technology is currently reshaping roles and expectations more than eliminating jobs outright. Instead, workers who fail to adapt to AI-driven changes may be at greater risk of displacement.
The impact of layoffs is being felt well beyond those who lose their jobs. Employees who remain report increased workloads (30%), reduced morale (26%) and greater team instability (26%), alongside declining trust in leadership.
Despite this, more than half of HR leaders acknowledge they could do more to support both departing and remaining staff. The report highlights a gap between what organisations say they offer and what employees actually experience, particularly in areas such as redeployment, training and mental health support.
Experts behind the report argue that companies must rethink how they manage workforce transitions, placing greater emphasis on reskilling, internal mobility and transparent communication.
Supporting remaining employees is critical, the report adds, as visible care for those affected by layoffs can help stabilise teams and maintain trust. Without it, organisations risk compounding disruption and weakening long-term resilience in an already uncertain labour market.
