The HBR Playbook on keeping employees motivated in troubling times. by Ania W. Masinter
August 13, 2025
Roses Wong
Layoffs cause fear, anger, and deep loss of trust among remaining employees. These feelings have very real repercussions: Research has shown that layoffs targeting just 1% of a company’s workforce result in a 31% increase in turnover. Another survey found that 74% of employees said that their productivity declined after their company’s layoffs. With more corporate leaders discussing the potential for AI-related mass job cuts, the anxiety around a reduction in force runs even deeper.