layoff
Holiday layoffs hit harder, with fewer job opportunities and added stress during this challenging season. (PHOTO: UNSPLASH)

Nearly one in three American companies will lay off employees before the end of December, compounding what has already been the worst year for job cuts since the pandemic struck in 2020.

A November 2025 survey by Resume.org of 1,008 US business leaders found that 31% plan to conduct layoffs before the year ends. Of these, 57% will occur between Thanksgiving and Christmas, while 43% are expected during the week between Christmas and New Year. Additionally, 32% of companies had already begun reductions before Thanksgiving.

These holiday layoffs come amid a bleak economic backdrop. Data from executive outplacement firm Challenger, Gray & Christmas shows that more than 1.1 million American workers have already lost their jobs through October 2025—representing a 65% increase compared to the same period last year and the highest total since 2020.

Layoffs Could Have Been Postponed

What makes the timing particularly contentious is that most employers acknowledge these cuts could have been delayed. According to the survey, 34% of business leaders said layoffs 'definitely could have waited' until after the holidays, while a further 40% admitted they 'probably could have' postponed the decisions.

Cost-Cutting Over Compassion

The primary motivation for holiday layoffs is financial housekeeping ahead of the new fiscal year. The survey indicates that 74% of companies cite cost-cutting ahead of Q1 2026 as their main reason. More troubling, 42% of respondents admitted the timing helps them avoid paying employee bonuses, while 35% said it allows them to sidestep obligations related to unused paid leave.

Underlying factors driving these reductions include economic concerns (28%), declining company performance (27%), AI and automation (25%), and organisational restructuring (20%).

Kara Dennison, head of career advising at Resume.org, highlighted the human toll of these decisions. 'For the person losing their job, the timing is brutal,' she said. 'The holidays magnify stress, and lost income combined with the social expectations of the season can make the experience feel lonelier.'

Dennison also warned that holiday layoffs are particularly destabilising because hiring typically slows during this period, leaving displaced workers with fewer immediate job opportunities.

AI and Automation in Redundancy Decisions

Artificial intelligence is playing an increasingly prominent role in the layoff process. According to the survey, 69% of companies are using AI to identify which roles to eliminate, and 66% are deploying the technology in the actual layoff process.

Despite this algorithmic approach, most firms prefer delivering the news through personal channels. Resume.org's findings reveal that 25% opt for in-person one-on-one meetings, 21% send personalised emails, and 16% conduct virtual individual sessions.

Severance and Executive Bonuses

Support for laid-off workers remains inconsistent. The survey shows that only 58% of companies offer severance packages to all employees, while 35% provide severance to some, and 6% offer none. Among those offering support, 34% give just two weeks' pay, and 9% offer less than a fortnight's wages. About two-thirds of firms said they would provide job placement assistance.

Meanwhile, the executive suite remains largely unaffected. The survey found that 82% of business leaders confirmed that executives will still receive their bonuses this year, and 57% are continuing with traditional holiday celebrations.

This disparity persists despite 73% of managers acknowledging that conducting layoffs during the holiday season is unethical.

A Record Year for Job Losses

The holiday layoffs mark the culmination of a devastating year for American workers. According to Challenger, Gray & Christmas, October alone saw 153,074 job cut announcements—the highest October figure in 22 years, and a 175% increase from the same month in 2024.

Government positions bore the heaviest losses, with 307,638 cuts through October, largely driven by reductions within the Department of Government Efficiency. The technology sector followed, with 141,159 layoffs, while warehousing recorded 90,418 redundancies and retail saw 88,664 job cuts.

Advice for Displaced Workers

Kara Dennison urged affected employees to act swiftly rather than waiting until January.

'Securing unemployment benefits, updating your resume and LinkedIn immediately, and reconnecting with people who can open doors' should be immediate priorities, she advised. 'People who wait until January to start networking are often already behind those who used the holiday weeks to get organised and prepared.'

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