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Nearly Half of Companies Anticipate Layoffs in 2025

ResumeTemplates, a leading platform for free professional resume templates and examples, has released findings from a January 2025 survey revealing widespread expectations of layoffs this year. The survey of 1,000 U.S. managers finds 45% of companies anticipate layoffs in 2025, with many citing economic concerns, AI automation, and the Trump administration’s policies as contributing factors.  

Among companies, 11% say workforce reductions are definite, while 34% report they are likely. Most companies anticipate relatively modest layoffs, with 28% planning to cut fewer than 5% of employees and 44% expecting reductions of 5% to 10%. Larger layoffs remain less common, with just 8% projecting cuts of more than a quarter of their workforce.  

In addition to layoffs, 31% of companies currently have a hiring freeze in place, and another 13% plan to implement one this year. Companies are also taking other cost-cutting measures, with 32% reducing or cutting bonuses, 25% downsizing office space, and 17% cutting employee benefits. Additionally, 12% plan to reduce salaries, with 35% of those applying cuts across all employees and 30% targeting low-performing employees. 

“Layoffs can be unpredictable, and many employees may not know if their position is at risk,” says Julia Toothacre, ResumeTemplates’ chief career strategist. “Workers should take proactive steps, such as discussing job security with their manager, highlighting their accomplishments, and updating their resume and LinkedIn profile in case they need to search for a new role quickly.”  

The survey also finds AI adoption is playing a significant role in workforce decisions, with 32% of companies citing automation as a reason for expected layoffs. Additionally, 24% of companies acknowledge that Trump’s policies could impact their layoff plans, reflecting uncertainty surrounding economic and regulatory changes under the new administration. 

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