The curse of the forever layoffs is upon us

Large-scale layoffs may grab the headlines, but employers are increasingly turning to continuous smaller layoffs, creating an atmosphere of unending uncertainty

WHAT’S BETTER, MASS layoffs done all at once, or a slow drip of headcount reductions that seems never-ending? While the economic headlines over the past couple of months have focused mainly on the former, it’s the latter — so-called “forever layoffs” — that have been plaguing employees in 2025, and which are expected to continue into next year.

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According to Glassdoor’s Worklife Trends 2026 report, 2025 was the year where, counter to what you might think as you watch news of mass layoffs at Amazon, Bell, GM and others, smaller layoffs dominated, with 51 per cent of all layoffs comprising fewer than 50 individuals. That number sat at just 38 per cent a decade ago.

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“Employers have started engaging in smaller but regular layoffs instead of infrequent but large cuts,” Glassdoor’s report reads. Employers, it speculates, believe mass layoffs bring things like resentment and bad press. But the knock from smaller, more frequent cuts may be worse.  

“Rolling layoffs may give companies a way to reduce headcount without making headlines, but they create cultures of anxiety, insecurity and resentment at companies,” Glassdoor wrote, noting that “the connection between employees and leaders feels more tense than ever.”

What impact this may have on performance metrics for the employees that remain is yet to be seen, but early indicators are not good. “Though of course layoffs are nothing new, what feels new is the near constance, even as companies bring in ever more revenue,” wrote Money Moves author Alicia Adamczyk. “What these forever layoffs leave us with is a workforce perpetually anxious about when it will be their turn to lose a job, and with it their income, health insurance, retirement contributions, and, in some cases, sense of purpose.”

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Not surprising then that Glassdoor also predicts diminishing employee loyalty for 2026, noting that positive worker ratings of bosses is tanking — while the number of negative reviews spiked by around 25 per cent last year.

“While serial layoffs may fly under the radar, they don’t fool the employees who take on more work afterwards and wonder if they might be next,” Glassdoor wrote. “The persistent drag from forever layoffs is likely to damage worker morale and workplace culture in 2026 and beyond.” Kieran Delamont