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A slew of mass layoffs has hit corporate America, exacerbating a stagnant job market. Amazon, Target, and UPS are some of the corporations that have recently announced job cuts. A slew of mass layoffs has hit corporate America, further exacerbating a stagnant job market. Other companies that announced mass layoffs include Intel, Nestle, Accenture, Ford, and Microsoft, among others. CBS also announced mass layoffs and has been mired in controversy; the company let go of veteran journalist Lisa Ling and a Variety report alleges that popular CBS anchor Gayle King will also be departing from the network. In addition, CBS dismantled their Race and Culture division and a former news producer named Trey Sherman accused the company of firing every person of color in his division. Some reports indicate that Amazon may have reduced staff because of the rise of AI but an Amazon spokesperson disputed this claim, according to CNN. Economic Times suggested that job cuts may be due to rising costs and slowing consumer spending. In addition, mass layoffs within the federal government have been ongoing since the start of 2025. The mass layoffs within several different industries coupled with the rising costs makes for a dangerous cocktail that threatens worker wellbeing. It's important to examine who is most impacted by these mass layoffs. Research reveals that women and non-white employees are more likely to be laid off than their counterparts. According to a 2016 Harvard Business Review report, when layoffs occur, women and racial minorities are more likely to be ousted. A 2021 study exploring the demographics of those laid off during the start of Covid-19 from January 2020 to August of 2020 mirror these findings; the research indicated that women and racial minorities were more likely to be laid off during this timeframe. The researchers theorized that this finding could be attributed to factors like direct discrimination against these groups and the fact that women and people from underrepresented racial groups are more likely to occupy lower status jobs than their counterparts. According to a 2016 Harvard Business Review report, when layoffs occur, women and racial minorities are more likely to be ousted. Mass layoffs can have deleterious and detrimental impacts on worker wellbeing, trust and psychological safety. A 2025 study exploring the impact of layoffs on employees within IT companies revealed that mass layoffs impacted employee engagement, loyalty, and organizational success. A 2022 study found that when companies didn’t meet employee expectations following downsizing, employee trust toward the organization was reduced as well as employee commitment and turnover intentions increased. Companies that must downsize should understand how to do it in a way that is ethical, empathetic and honors employee dignity. MORE FOR YOU When layoffs are necessary, here are some best practices to consider: Companies should avoid faceless firing if possible, explained Tom Lakin in a 2022 Raconteurarticle. This type of firing lacks humanity and feels transactional. Lakin also suggested transparency as a necessary ingredient in your mass layoff strategy. Communicate with employees as much as possible why the layoffs are taking place (did the company over hire for example?) A 1994 article on ethical downsizing explained that employees should also be given as much advanced notice as possible, whenever possible, so they can plan accordingly. Candor, consistency and courtesy are the three C’s that managers should adopt and will go a long way during the layoff process. Layoffs are always going to be difficult; Those who are tasked with delivering the news of a layoff should be trained on ethical layoff practices. Mass layoffs can completely transform an organization. With the rise of AI and different industries experiencing financial strain due to varying factors, companies must figure out how to salvage employee trust and wellbeing. With more consumers considering how corporations treat employees in their buying decisions, gone are the days when companies could discard their employees without a second thought. In an era where more care and consideration are not only expected but demanded, staff reductions must be done in an ethical way that honors the dignity and humanity of every employee that is impacted. It’s not just the right thing to do; we live in a time when people are rising up and refusing to tolerate disrespect at the hands of corporations; the sustainability of any organization is determined by how well its employees are treated, especially during times of great change. Editorial StandardsReprints & Permissions
