While layoffs can lead to short-term financial benefits, research shows just how much of an impact they can have on employee engagement, morale, and l

Research: The Long-Term Costs of Layoffs

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2024-10-13 08:00:04

While layoffs can lead to short-term financial benefits, research shows just how much of an impact they can have on employee engagement, morale, and loyalty — and how long that negative impact can last. Humanizing the layoff experience can help lessen the impact and set your business up for a more rapid recovery, but remember to go into the decision to do layoffs with clear eyes: There’s no such thing as a quick business win without a human cost to the business, and your rebound is likely to take years rather than months.

In today’s climate, large-scale layoffs are in the news often. The industry being hit the hardest right now is tech, with more than 100,000 roles being cut in 2024 so far, including from large companies like Microsoft, Intuit, and Dell. With such high-profile companies making widespread staff cuts, it’s only natural for leaders to wonder if reducing headcount might be the answer to their business’s woes, too.