9 months ago
The 'Forever Layoff Trend' Fueling Worker Anxiety in 2026
Imagine companies used to have a big party and fire a lot of people at once.
But now, a new trend called 'forever layoffs' means they are firing just a few people, more often.
This happens quietly, without much attention, and it’s becoming more common.
So, even though it's not a huge number of people each time, everyone else at work starts to worry about their own job.
They feel less safe and more anxious because they don't know if they'll be the next small group to get fired.
This makes work feel stressful, not just for those who lost their jobs, but for everyone still working.
Small layoffs, affecting fewer than 50 employees, are becoming the most common type, rising from 38% in 2015 to 51% by 2025.
The 'Forever Layoff Trend' describes employers executing smaller, regular layoffs instead of large, sudden ones.
This trend is expected to fuel worker anxiety and insecurity into 2026.
Layoffs in 2025 have returned to pre-pandemic levels after being historically low in 2021-22.
These smaller layoffs may occur without formal filings, potentially making them less visible to the public but damaging to employee morale.
- Who
- Employers and employees, specifically in the context of the job market.
- What
- The 'Forever Layoff Trend,' characterized by small, regular layoffs becoming more common, leading to increased worker anxiety.
- Where
- The trend is discussed in the context of the job market, with examples of tech giants like Microsoft, Infosys, Amazon, and Atlassian mentioned.
- When
- The trend is noted as having risen from 2015 to 2025 and is expected to persist into 2026.
- Why
- Employers use this trend as a cost-cutting measure and a way to reduce headcount without large headlines, while it fuels worker anxiety due to insecurity and the fear of being next.
Employee Perspective
Employer Rationale
Impact of Layoffs
Employee Perspective
The 'Forever Layoff' trend creates cultures of anxiety, insecurity, and resentment among employees, damages worker morale, and leads to increased workloads. Employees worry if they will be the next to be laid off.
Employer Rationale
Smaller, regular layoffs allow employers to reduce headcount without making major headlines and can be a cost-cutting measure by trimming payrolls. This approach might also be due to not requiring filings for firing less than 50 employees.
Power Dynamic
Employee Perspective
The power has gradually shifted back to employers, who apply pressure through unpopular decisions like layoffs and return-to-office policies.
Employer Rationale
Employers are able to implement unpopular decisions more readily in the current market, with the AI-boom potentially contributing to this shift.
Key facts
- Report Name
- 2026 Worklife Trends Report
- Report Source
- Glassdoor
- Trend Identified
- 'Forever Layoff Trend'
- Small Layoffs (Less than 50 employees)
- Increased from 38% in 2015 to 51% by 2025
- Layoff Levels
- Back to pre-pandemic levels in 2025 after a historical low in 2021-22
Quotes
Glassdoor
The organization that conducted the study and authored the report.
“While serial layoffs may fly under the radar, they don’t fool the employees who take on more work afterwards and wonder if they might be next. The persistent drag from forever layoffs are likely to damage worker morale and workplace culture in 2026 and beyond.”
financialexpress.com
“They have applied more pressure to workers with unpopular decisions, from layoffs to return-to-office policies.”
financialexpress.com
Sources
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