Many tech giants like Amazon, Alphabet (Google), Microsoft, Meta (Facebook), and Zoom have cut jobs due to concerns about an economic slowdown. Other renowned companies such as Salesforce and Accenture also have announced layoffs, the latter with up to 19,000 jobs cut.
 

Not only are the employees of these large Silicon Valley companies or international enterprises concerned that their jobs might be at risk, but also people working in smaller organizations. The current economic situation and the lack of job security we see in the labour market every day are affecting the mental health of many employees.

BizReport recently published a study with seven alarming findings on how mass layoffs impact people’s mental health and morale.

1. 81% of layoff victims say they experienced at least one symptom of depression after losing their job
2. 60% of layoff victims are less likely to trust their next employers
3. 73% of layoff victims struggle financially after losing their jobs
4. 69% of layoff victims didn’t receive any form of support from their former employers
5. 71% of layoff survivors say their work motivation has declined since the layoff
6. 65% of layoff survivors say they have been overworked since the layoff
7. 61% of layoff survivors say they are less likely to recommend their company as a great organization to work for

As we can see, the effect on the people who lose their jobs can be devastating, but mass layoffs also leave a negative mark on the employees who remain in the organization.

“Layoffs can also damage company culture — in many cases, irrevocably. The targets of a layoff often leave upset and betrayed, but the feelings of those who remain can be the most damaging. Productivity amongst survivors drops on average by 12%, a symptom of survivor’s guilt,” says Danny Codella.

However, there are many cost-effective ways managers can provide support and reassurance to their employees in uncertain times like this that put the focus on the human side. According to Quantum Workplace, these are the best ways to boost employee morale after layoffs: