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Announcing a layoff is never good news, but there are tactful and kind ways to go about delivering bad news. Unfortunately, 60% of employees feel their company leaders lack empathy when delivering layoffs.
This is according to a new global report by INTOO and research firm Workplace Intelligence, which reveals a troubling disconnect between how employers handle layoffs and how employees experience them. The study uncovered widespread concern over job security, poor communication, and a lack of leadership empathy during layoffs.
Employees Fear Layoffs but Feel Unprepared
More than half of employees (53%) fear losing their jobs within the next year, yet 91% admit they’re not ready to job hunt. Over half say they could only financially support themselves for three months if laid off. Despite this, 58% of HR leaders acknowledge their companies aren’t doing enough to support affected workers.
Leadership Falls Short on Empathy
Aside from 60% of employees feeling their company leaders lack empathy when delivering layoffs, over half (54%) don’t trust leadership to handle layoffs with fairness or compassion either. This is in stark contrast to 77% of HR leaders who believe their company strives to be fair. A third of employees said their employer made minimal effort to ensure fairness during past layoffs.
The Fallout Extends Beyond Those Let Go
The impact of layoffs doesn’t stop with those shown the door. Eight in ten employees believe companies underestimate how layoffs affect remaining staff. In fact, 71% of layoff survivors say they’d start job hunting immediately after witnessing layoffs, while 62% report a loss of trust in their employer.
The mishandling of layoffs has long-term consequences. Nearly 1 in 5 employees — and 1 in 4 Gen Z workers — say they would vent publicly online if let go.Â
Almost half of employers have already experienced negative backlash on social media. A striking 71% of laid-off workers say they would never return to their former employer.
A Wake-Up Call for Employers
Mira Greenland, CRO at INTOO, emphasized that poorly managed layoffs can lead to far-reaching consequences, including loss of trust and high turnover among remaining employees. She underscored that compassion, transparency, and post-layoff support are critical for maintaining company culture, employee morale, and long-term organizational stability.
As layoffs remain a reality for many companies, this report serves as a call to action: handle reductions with transparency, empathy, and support — or risk losing far more than headcount.
