Layoffs are nothing new, but their frequency is. Many U.S. companies are increasingly falling into a “layoff loop,” cutting roles and rehiring for them within months, according to research from Careerminds. As many as eight in 10 HR leaders have overseen layoffs in the last year alone, with most saying the cuts happened within six months of each other. In many cases, the same jobs are being rehired less than a year later.
This results in a destabilized workforce with declining morale, and an impossible task for HR teams trying to maintain trust and culture in an environment that never stops shifting. Not only that, but recent research found that over 40% of employees say that layoffs negatively it’s having internally for companies.
New research reveals that nearly 78% of HR leaders say their company has conducted multiple rounds of layoffs in the past 12 months. Careermind’s data found that among HR leaders who have overseen multiple layoffs, almost a third (27%) say that the cuts were made just one to two months apart, and 40% noted just three to five months between layoffs.
A staggering one in 10 (9%) respondents reported less than a month between layoff rounds, suggesting that for many companies, short-term fixes may be replacing strategic planning, and at a cost to employee trust and engagement.
Nearly half (49%) of respondents say that their company rehired up to a quarter of the roles cut within just 12 months. Additionally, over a third (35%) of HR leaders stated that between 26% and 50% of laid-off roles came back within 12 months. This is followed by 12% stating that between 51% to 75% of laid-off roles returned within the same period. These quick reversals imply instability and misalignment between workforce strategy and business needs for many organizations.
Repeat layoffs don’t just affect headcount; they impact culture. One in two HR leaders reported a significant drop in employee morale after serial layoffs. Many cite “survivor’s guilt” as a key driver behind declining engagement and rising turnover. Additionally, the data found that as many as 47% saw an overall drop in productivity.
Careerminds’ research found that in workplaces where layoffs have become routine, employees feel less connected, less motivated, and more inclined to leave, with 41% of HR leaders seeing an increase in resignations as workers search for a new role with greater security. Many (38%) HR leaders affected by layoffs also report a loss of critical skills.
Over half (55%) stated that budget cuts or financial instability were the primary factor behind layoffs, followed by 38% pointing to changing business priorities and 37% highlighting disruptions to the market, including the development of AI.
Nearly 30% of HR leaders also report facing direct pressure from investors or board members when making workforce decisions. As a result, many HR teams are being asked to deliver both immediate cost savings and long-term stability, often without the necessary time, data, or decision-making autonomy to do either effectively.
Careerminds found that only one in three (37%) companies offer outplacement support for laid-off employees. Half (50%) of HR leaders say their organization provides enhanced severance packages, while 47% extend access to company benefits after a layoff. However, outplacement services, which help affected employees secure new roles more quickly, remain underused.
“These findings reveal how much instability has become a part of the workplace experience in recent years,” says Raymond Lee, president of Careerminds. “For employees, repeat layoffs are becoming an increasingly common occurrence, leading to a decline in trust and making it harder to stay engaged or committed to their employer. For HR leaders, it creates a culture of survival instead of strategy.”
