3 in 10 Companies Will Lay Off Employees During the Holidays

A November Resume.org survey of 1,008 business leaders found that many companies will lay off employees this holiday season.

The survey found:

• 31% of companies will conduct layoffs between mid-November and December 31
• The majority admit layoffs could have waited until after the holidays
• 69% are using AI to identify which roles to cut
• 42% won’t give severance to employees
• 82% say executives will still receive bonuses this year

31% of Companies Will Lay Off Employees During the Holidays

Thirty-one percent of business leaders say their company will conduct layoffs before the end of the year. Most expect to carry out those cuts between Thanksgiving and Christmas at 57%, while 43% anticipate the week between Christmas and New Year’s, 32% before Thanksgiving, and 16% say the timing is not finalized but will occur before 2026.

Many acknowledge these layoffs could have been delayed, with 34% saying they definitely could have waited and 40% saying they probably could have.

Companies cite cost-cutting before Q1 (74%) as the main reason for pushing layoffs into the holiday window. Others say it helps avoid paying bonuses (42%) or PTO (35%). The largest underlying drivers are the economy (28%) and company performance (27%), followed by AI or automation (25%), and organizational restructuring (20%).

Kara Dennison, Resume.org’s head of career advising, says companies frequently align layoffs with year-end financial cycles because they are trying to finalize budgets, reconcile headcount, and clean up reporting before January.

“Laying off employees at the end of the year can make transitions operationally easier for some teams,” explains Dennison. “For the person losing their job, however, the timing is brutal. The holidays magnify stress, and lost income combined with the social expectations of the season, can make the experience feel lonelier.”

According to Dennison, holiday layoffs are particularly destabilizing because hiring often slows down during this time. She says employers can help by offering extended severance or benefits and outplacement support to ease both the emotional and financial fallout.

7 in 10 Companies Will Use AI To Plan or Execute Layoffs

About 69% of companies will use AI to determine which roles to eliminate, and 66% will use AI in the layoff process itself.

However, when notifying employees, companies favor more personal formats like in-person 1:1 meetings (25%), personalized emails (21%), or virtual 1:1 meetings (16%). The rest rely on less personal formats, such as group virtual meetings (13%) or in-person group meetings (7%).

Many Companies Will Offer Little to No Severance

Only 58% of business leaders say all laid-off employees will receive severance, while 35% say only some will, and 6% say none will. Among those providing packages, 9% offer less than two weeks’ pay. Most fall at either two weeks’ pay at 34% or three to four weeks’ pay at 30%. About two-thirds say they are offering job placement support.

Dennison advises employees to move quickly after a layoff. She recommends “securing unemployment benefits, updating your resume and LinkedIn immediately, and reconnecting with people who can open doors.” She adds that December preparation pays off because “people who wait until January to start networking are often already behind those who used the holiday weeks to get organized and prepared.”

8 in 10 Companies Will Still Reward Executives With Bonuses

Despite the fact that 73% of managers surveyed feel layoffs during the holidays are unethical, most companies will move forward with rewarding and celebrating retained employees.

Eighty-two percent of business leaders say executives will still receive bonuses this year, and 57% say the company is still hosting its typical holiday party.

Methodology: Resume.org surveyed 1,008 business leaders in November 2025. Respondents met specific demographic criteria including, job title, age, income, and education. All respondents had to indicate they are currently in a manager-level position and directly involved in hiring and personnel decisions.