Poorly Handled Layoffs Are Costing US Employers Their Remaining Talent

Snap Inc.'s announcement this week that it is cutting roughly 1,000 roles (16% of its workforce), delivered via a same-day email with no prior warning, is only the latest example of how abruptly layoffs are being handled across corporate America.

Careerminds surveyed more than 1,000 full-time US workers who had either been laid off or witnessed layoffs on their team in the past 12 months. According to the study, there is a glaring disconnect between how companies think they are communicating and how workers actually perceive it.

Key findings:

1. Half (50%) of remaining employees said poor communications pushed them to consider leaving their own role

2. Only 1 in 4 (28%) of laid-off employees felt leadership was fully transparent about why cuts were made

3. Workers who felt the process was fair were nearly twice as likely to find a new job within a month (39% vs 22%)

4. 59% of those laid off said their trust in the company was damaged, and just 7% said it improved

Amanda Augustine, Certified Professional Career Coach and resident career expert at Careerminds, said: 

"Being laid off is hard enough to process, but finding out through a mass email, like the 1,000 Snap employees who learned their fate this past week, makes it even harder to move forward. How a company handles these moments says everything about how much it truly values its people.

"When handled poorly, these situations don't just affect those leaving; they can erode trust, weaken morale, and drive further attrition among those who remain. Leaders often underestimate just how closely the people staying behind are watching."

The full blog post, including survey methodology, can be read here and offers the following insights:

• The rumor mill is still ahead of HR: A third (34%) of those laid off first heard the news through workplace gossip, more than those told directly by their manager or HR (27%). More than a third (35%) of remaining employees also found out through the grapevine before any official word came through. By the time formal communications landed, many employees had already formed an impression.

• Transparency is the missing piece: While most HR communications were perceived as empathetic in tone, only 1 in 4 (28%) of those laid off felt leadership was fully transparent, clearly explaining the business rationale, selection criteria, and steps being taken to avoid future cuts. Nearly half (49%) said they were given partial information, and 23% felt messaging was not transparent at all.

• Inconsistency is weakening the message: Only 29% of departing employees and 26% of those who remained said communications were fully consistent across all sources. Around 1 in 5 reported conflicting messages from different parts of the business, a gap that compounds uncertainty and erodes confidence in leadership.

• Survivors are already reconsidering their futures: Half (50%) of employees who witnessed layoffs said poor communications made them consider leaving their own role. According to Harvard Business Review, cutting just 1% of a workforce can trigger a 31% spike in voluntary resignations, and mishandled communications significantly amplify that risk.

• The damage extends beyond the organization: Among employees who experienced poor layoff communications, 59% of those laid off and 53% of those who remained said their trust in the company had decreased. Just 7% said it had improved. Nearly 6 in 10 (58%) of those let go said they would be unlikely to recommend their former employer to someone job hunting, a lasting reputational cost that HR professionals are often the first to absorb.

• How you let people go shapes how quickly they recover: Employees who perceived their layoff communications as fair were nearly twice as likely to secure a new role within one month (39% vs 22%). For those who felt the process was handled poorly, more than 1 in 5 were still searching after six months. The quality of the off-boarding experience has a direct bearing on re-employment speed and on how former employees talk about the organization once they're gone.

Careerminds is a global workforce solutions provider delivering career transition, workforce design, and talent development to organisations worldwide. Our consumer career brands extend that reach, giving individuals AI-powered career tools and coaching at every stage of the career journey. Together, we combine technology, data, and human expertise to create a connected ecosystem that supports both workforce transformation and individual career success. Follow us on LinkedIn, Facebook, Instagram, X, and YouTube.

Amanda Augustine is the resident careers expert for Careerminds, career.io, and its suite of brands: resume.io, TopResume, TopCV, TopInterview, Resume.ai, and others. As a Certified Professional Career Coach (CPCC) and a Certified Professional Resume Writer (CPRW), she has spent more than 20 years helping professionals improve their careers and land the right job sooner. Connect with Amanda on LinkedIn, X, Instagram, and Facebook.

---

Methodology: Careerminds surveyed 1,000 full-time US workers in October 2025 who had either been made redundant or witnessed redundancies on their team in the previous 12 months.