'Could I Be Next?' The Psychological Impact of Surviving Layoffs

Several major companies have announced job cuts this year, and a new survey suggests more are coming. A Rutgers expert discusses the untold part of the story.

Mass layoffs continue to make headlines.

Boeing is cutting an estimated 2,500 jobs. Pepsi is cutting 1,000. Disney is reportedly planning widespread cuts, directing some managers to reduce costs by up to 20%. There have also been workforce reductions at UPS, Oracle, Meta, and other major companies nationwide.

In New Jersey, employers have notified the state of more than 14,000 planned layoffs in 2026, with the largest cuts at Amazon, Samsung, Bristol Myers Squibb, and JPMorgan Chase.

The growing deployment of artificial intelligence is cited as a reason for many, but not all, of the job cuts. Facility closures, production delays, and stagnant sales are factors in others.

While layoffs are down in a year-over-year comparison-1.64 million in September 2026, compared to 1.82 million in September 2025-more are coming. In a recent LHH survey of 600 people, 72% of business leaders and 80% of CEOs said they expect layoffs in the next year.

For the affected employees and their families, the impact is devastating. But what about the employes who "survive" the layoffs and remain on the job?

That is the untold part of the story, according to Jie (Jasmine) Feng, an employee turnover expert and Associate Professor of Human Resource Management in the School of Management and Labor Relations.

What happens in the workplace after a round of layoffs?

I think a common mistake companies make is assuming that the workforce that stays is still the same workforce psychologically.

In fact, after a layoff, many survivors actively re-evaluate the organization: whether they trust leadership, whether they still see a future there, whether the firm will reciprocate their effort, and whether staying is still a smart career decision.

Voluntary turnover is not always triggered by a gradual accumulation of dissatisfaction. Sometimes, a shocking event can prompt employees to reassess their relationship with the organization and activate departure plans, even if they were relatively satisfied. A layoff can function as exactly this kind of shock for survivors.

So the deeper issue is that layoffs can turn committed employees into alert and conditional employees. They may become more cautious about going above and beyond, more protective of their time and career options, and more open to outside opportunities.

Are they more likely to quit?

Yes. Research strongly suggests that layoffs are more likely to trigger voluntary turnover when survivors perceive the rationale as unclear, unfair, or inconsistent with the organization's stated values. Visible strong performance can make that fairness problem more salient.

Employees who remain may begin to question the fairness of both the process and the outcome. Layoff survivors may wonder, "How do I know I am still considered valuable?" or "Could I be next, even if I am doing my job well?" Such uncertainty can increase job insecurity and reduce organizational commitment.

If employees perceive the criteria as unclear, inconsistent, or unfair, the organization risks damaging trust in leadership and weakening the psychological contract between employer and employee. Over time, this can increase voluntary turnover among survivors.

What can employers do?

One of the most effective ways to stabilize retention after a workforce reduction is to reduce uncertainty, rebuild trust, and help survivors see a clear future within the organization.

HR leaders should communicate clearly and consistently about the criteria used, why the layoff happened, how decisions were made, what will change, and whether additional cuts are expected.

A second priority is ensuring that the process is perceived as fair and dignified. This matters not only for employees who remain, but also for departing employees, future job candidates, and other external stakeholders who are watching how the organization treats people during difficult moments.

Survivors often judge the organization by how their former colleagues and friends were treated. Similarly, future employees may interpret layoff practices as signals of the organization's values, stability, and trustworthiness as an employer.

Respectful communication, meaningful transition support, and fair procedures for departing employees can help protect both internal trust and the firm's longer-term employer reputation.