Layoff Loops: What’s Driving Repeat Job Cuts in 2025 [Survey Report]

Companies across the U.S. are entering a troubling new pattern: serial layoffs where roles are cut and then re-filled, within a matter of months. 

Our new research reveals that nearly 8 in 10 HR leaders have overseen two or more rounds of layoffs in the past two years, and most say those rounds occur less than six months apart. This campaign explores what’s driving the trend of multiple layoffs, the impact it’s having on morale and company brand, and how HR leaders are responding. 

To understand the rise of repeat layoffs, we surveyed HR leaders working in full-time positions. 

Nearly 78% of HR leaders say their company has conducted multiple rounds of layoffs in the past year. According to our survey, layoffs are not only recurring but happening in rapid succession. Among HR leaders who have overseen multiple rounds of layoffs, 9% report that the layoffs occurred less than one month apart, while 27% say layoffs took place just one to two months apart. 

Interestingly, the majority (40%) of HR leaders report that their layoffs occur quarterly, indicating a trend of short-term cost-cutting rather than long-term planning. Meanwhile, 16% reported a six to eight-month interval, and less than 9% of companies spaced layoffs nine months or so apart. The trend highlights a shift towards reactive workforce management, but could this have implications for employee trust?

Nearly half (49%) of HR managers report that companies rehire up to a quarter of the roles they have previously cut within twelve months. Rehiring so soon after layoffs suggests not a return to stability, but a misalignment between quick fixes and lasting solutions. 

1 in 2 HR leaders report a drop in morale and productivity after repeat layoffs

While changes to the workforce are inevitable, repeated layoffs trigger far more than just operational disruption, and HR leaders are dealing with a fallout of fractured trust, stability and confidence within remaining teams. 

49% of HR leaders have observed a significant decline in employee morale following serial layoffs, often driven by survivor’s guilt, while 47% see a drop in productivity overall. Voluntary resignations also surge, with 41% noting increased turnover as remaining employees seek more secure roles elsewhere. 

In many cases, the company also loses more than headcount: 38% say vital knowledge and skills walked out the door with exiting employees. 29% of HR leaders report harm to their brand as an employer, and 34% saw a decline in the quality of customer service. 

These cascading effects are exacerbated by how quickly layoffs are happening. With 75% of companies conducting repeat layoffs less than five months apart, teams are left in a constant state of instability, often without enough time to rebuild trust or restore momentum. For HR leaders, this creates an impossible task: expected to drive engagement, protect company culture, and retain top talent in an environment that’s shifting beneath their feet. 

Repeat layoffs aren’t always the result of poor planning but are often driven by fast-moving pressures and limited time to adapt. For many HR leaders, decisions come down to financial survival rather than strategic intent. More than half (55%) of HR leaders cite budget cuts or financial instability as the primary driver behind layoffs, while 38% point to shifting business priorities. 37% highlight disruption to their industry as a key reason, including the development of artificial intelligence. 

With nearly 30% of HR leaders citing direct pressure from investors or boards, it’s clear that workforce decisions are often made under intense scrutiny or shifting demands. HR teams are left to balance short-term survival with long-term workforce needs, often without the time, data or autonomy to do either effectively. 

If you’re planning to conduct tech layoffs in 2025 click below to download our free Essential Guide to Handling a Layoff to learn how to considerately transition your employees and successfully navigate the delicate layoff process from start to finish.

As layoffs become more frequent, HR leaders are offering support with limited resources. Half (50%) share that their company offers enhanced severance packages, and 46.5% offer continued access to company benefits after an exiting employee is laid off. 

Outplacement services, currently offered by just over a third of organizations, can provide assistance to help affected employees find a new role faster. Beyond helping individuals, this support can help retain a company’s reputation as a great place to work. Making outplacement and well-being services a standard part of the repeat layoff process can ease the impact of layoffs for both employees and organizations, especially in 2025’s fast-changing job market. 

As layoffs become more frequent, the way companies support departing employees has never been more important. Outplacement services don’t just help individuals land their next role faster, they also signal that your organization values people in moments of transition. 

At Careerminds, we help HR leaders: 

• Support employees through job loss by connecting them with tools and coaching to find new, fulfilling roles faster 
• Minimize the emotional and operational impact of layoffs, with flexible, scalable outplacement solutions
• Protect and strengthen the employer brand during workforce transitions by offering meaningful support 

This report is based on a survey conducted by Careerminds in July 2025, gathering insights from 600 HR professionals across the United States. All respondents were currently working in full-time HR roles and have been directly involved in at least one layoff at their organization within the past two years.