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For weeks now, it seems like every few days another major company announces a layoff impacting hundreds, if not thousands, of its employees. These big cuts get a lot of attention, but under the surface another problem is brewing: Smaller-scale firings of less than 50 people are now the most common type of layoff throughout the year, making up 51% of WARN Act notices in 2025 compared with just 38% in 2015. Translation: The "forever layoff" is here, according to Glassdoor's latest report on 2026 work trends. These smaller but more regular firings could continue to stoke worker anxiety heading into the next year. Layoffs hit company culture for years Rolling layoffs could help companies stay out of headlines, researchers note, but "create cultures of anxiety, insecurity and resentment." Previous Glassdoor research found that after a layoff, negative sentiments from remaining employees took more than two years to recover, based on their company ratings. Repeated layoffs have double the impact on employee sentiment right after a second round of cuts, with the biggest drops for key talent, managers and new hires. Another sign of workers' dissatisfaction: Glassdoor ratings of senior leaders have been slipping since the second half of 2023 and are now well below their pandemic peaks. Workers in media and communication; management and consulting; and technology saw the biggest drops in confidence in their leadership. Glassdoor researchers point to AI business disruptions, media consolidations and a return to hustle culture ideals in tech as prime reasons for these declines. Meanwhile, a growing share of users mention words like misalignment, distrust, miscommunication, disconnection and hypocrisy since 2024 in Glassdoor reviews that mention their senior leadership or management. Silver lining for young job-seekers Outside of the layoff forecast, there's good news for some: Wage growth is on the upswing for young workers with up to four years' work experience, giving them more spending power in 2026. New grads have struggled over the last year to jumpstart their careers given the low hiring environment and businesses adopting AI, which has led many to open fewer entry-level roles. But for those who can secure a role, the pay will be better. Young workers in some rising cities will see the biggest difference. Provo, Utah; Boise, Idaho; Orlando, Fla.; Charleston, S.C.; and Austin, Texas are among the locations with the highest wage growth since 2020, according to Glassdoor. "For early career workers considering where to pursue their next career step, these rising cities represent good opportunities to grow your earnings even though they may not offer the highest salaries," Glassdoor researchers wrote. Want to level up your AI skills? Sign up for Smarter by CNBC Make It's new online course, How To Use AI To Communicate Better At Work. Get specific prompts to optimize emails, memos and presentations for tone, context and audience. Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn to connect with experts and peers.
