A corporate layoff has traditionally signaled trouble, such as a shrinking business, declining revenue, or a post-merger elimination of redundant roles. But increasingly, these reasons are absent from today’s corporate layoffs. Layoffs today are often a “business-as-usual” activity that stems from ongoing strategic planning. High-performing companies use them to realign skills, streamline operations, and meet investor expectations for agility.
For HR leaders, this shift changes everything. Layoffs are more common and carry far less stigma than before. That means how you manage exits matters more than ever, and outplacement services are central to that strategy. Outplacement protects your brand, keeps the door open for future rehiring and benefits both departing and remaining employees.
How Corporate Layoffs Have Changed Over Time
Layoffs were once a last resort, tied to financial distress or poor leadership. In the pension era, losing a job meant losing lifetime security, reinforcing employee expectations of stable employment. But today, our 401(k)-based system makes mobility, whether voluntary or involuntary, a bit less risky.
The shift is not entirely new. In the 1980s, GE’s Jack Welch introduced annual cuts of the bottom-performing 10%, which was a controversial move for a profitable company, however Welch saw these exits as essential so that GE could compete globally.This practice marked a turning point toward performance-based job cuts and demonstrated how company growth and layoffs could go hand-in-hand.
Fast forward to now: organizations routinely use layoffs to optimize workforce design and align talent with future priorities, all while continuing to remain profitable. Thus far in 2025, employers have announced 1.1 million job cuts, citing restructuring as the leading reason. Meanwhile, US corporate profits hit $3.36 trillion in Q2 2025, nearly double 2020 levels. Some experts believe technology, namely AI, is accelerating the layoff trend. The World Economic Forum finds that 41% of companies worldwide expect to make workforce reductions within the next five years due to AI adoption.
Layoffs today have also become part of a dynamic talent strategy. For instance, leading companies like Amazon, Microsoft, and Salesforce have reduced headcount in some areas while aggressively hiring in others. This pattern reflects a workforce model built on the continuous inflow and outflow of talent, and it shows no sign of stopping.
Layoffs No Longer Carry the Same Stigma
Most everyone views layoffs differently now. Investors often respond positively when companies announce reductions tied to efficiency or strategic realignment. For example, in 2023, Meta’s stock price increased by 178% after a year of cost-cutting and layoffs.
At the same time, employees recognize that layoffs are common and increasingly talk about them openly. Viral layoff videos on social media and LinkedIn’s #OpenToWork banner are proof that the stigma of being laid off is fading. But the anxiety persists, as nearly 46% of U.S. workers fear being laid off, even with unemployment rates still relatively low. As a result, organizations should manage exits with care and rely on tools like severance and outplacement services to support employees even after they’ve left.
Modern Offboarding: Why Companies Are More Generous Today
“No-fault” layoffs, those situations where employees lost jobs due to restructuring or economic downturns, are no longer the only situations in which employees are eligible for outplacement support. Reputation management and shifting talent priorities now drive companies to extend outplacement eligibility to employees exiting voluntarily, for poor fit, or due to performance issues.
According to payroll data from ADP, in 2025, boomerang employees accounted for nearly one-third of new hires. Boomerangs are those who left and were hired a second time. This trend is on the rise as former employees can represent a safe hire – the company may have data on how they performed previously, and since the left, they may have acquired new skills and experience. When exits are involuntary, outplacement leaves the door open for future rehires because departing employees are more likely to return if they feel they were treated well.
It’s no secret that how you treat departing employees shapes brand perception and future talent pipelines. As IMPACT Group CEO Lauren Herring says, “The way you treat people when they leave defines the message you’re sending when you hire.” Research proves the power of a positive exit. According to Gallup, employees who leave on a positive note are nearly three times more likely to recommend their former employer than those with neutral or negative experiences.
What This Means for HR Leaders
The evolution of the corporate layoff demands a new approach to workforce transitions. Here’s how to get started:
Communicate Proactively and Strategically
Employees can be rattled even by other companies’ layoffs, but transparency about what’s happening in your organization, and why, reduces anxiety and speculation. Therefore, explain how layoffs support your organization’s long-term goals, and remember that the rumors and headlines can impact employee morale and retention even when your organization is stable.
Strengthen Your Offboarding Brand
According to Glassdoor, 83% of candidates consider an employer’s reputation before applying, and how you handle exits is a key factor. Providing outplacement support strengthens your reputation and minimizes negative social media impact by showing that your organization cares about its employees.
Invest in Talent Mobility
Successful companies are always thinking about how to keep their workforce dynamic. To make room at the top for rising leaders, many companies offer voluntary exit packages for senior, long-tenured executives. Paired with outplacement support, these packages help leaders transition to active retirement which may include volunteerism, consulting, board roles, or encore careers. Make sure your outplacement provider offers this type of coaching. IMPACT Group has this type of coaching as well as coaching for those who may want to start a business.
You can also maintain talent vitality by investing in upskilling and job rotation programs. It helps balance hiring, redeployment, and exits, and can sometimes reduce the need for cuts altogether.
Manage Layoffs with the Right Strategic Partner
The corporate layoff has changed from a distress signal to a deliberate workforce strategy. And since departing employees may become future hires, the exit experience you provide is critical to long-term success. Robust outplacement services help you manage employee transitions with fairness, transparency, and brand stewardship.
Ready to build a stronger offboarding strategy? Book a call with IMPACT Group to learn how our outplacement solutions can support your organization and your people.
