Careerminds, a leading global provider of outplacement and career development services, has announced the results of new research on the state of career transition in large organizations. The findings reveal both the prevalence of layoffs and the crucial role that career-transition support plays in protecting brand reputation, morale, and retention.
As context, the common industry term “career transition” refers to the structured support employers provide when employees leave the company, including services such as career coaching, job search assistance, and reskilling. This process helps individuals secure new opportunities more quickly while also preserving company morale and reputation.
The study finds that 61% of organizations have conducted layoffs in the last two years, with that figure rising to 73% among employers with more than 25,000 employees. Looking ahead, more than half (52%) of those who have not reduced staff expect to do so within the next two years.
“The inevitability of workforce change makes it imperative for companies to prioritize career transition support, not just for departing employees, but for the health of the business as a whole,” says Raymond Lee, president of Careerminds. “A strong transition strategy protects brand reputation, sustains morale, and reassures employees that they are valued at every stage of their journey.”
Key findings include the following.
- Layoffs are likely and ongoing. Over half (61%) of organizations reported conducting redundancies in the past two years, and 52% of those who haven’t anticipate layoffs within the next 24 months.
- Career transition is a leadership imperative. Most (90%) respondents say having a formalized career transition strategy is essential, with 55% calling it “very important” and just 1% saying it’s “not at all important.”
- Brand and morale top the list of concerns. Protecting company reputation (55%) and preventing disengagement/low morale (55%) are the joint top reasons for offering career transition support, followed by maintaining trust in leadership (53%).
- Support drives retention and loyalty. Employees who rate their employer as “fair” or “poor are 9.7 times more likely to look for a new job within 12 months than those rating their employer as “excellent,” underscoring the retention benefit of career transition programs.
- Career transition is part of severance packages. Most (82%) organizations provide transition support as a standard part of severance, and larger employers are 63% more likely to offer five or more distinct services such as coaching, job-search help, and reskilling.
- There is a clear business impact. Most (98%) companies report a positive impact from providing transition support, with significant improvements in employee satisfaction (54%), employer brand ratings (50%), and post-layoff productivity (38%).
- Outsourcing delivers superior results. The vast majority of organizations outsource at least some career transition services, citing benefits such as reduced HR workload (44%), lower costs (32%), and improved compliance with labor laws (34%) compared to in-house programs.
As layoffs continue to shape the workforce landscape, the research underscores that career transition support is no longer optional. Companies that invest in robust transition offerings not only protect their brand but also strengthen employee loyalty, retention, and overall organizational resilience.
