ResumeBuilder.com, the premier resource for professional resume templates and career advice, has published a survey report examining the motivations behind layoffs in the past year. The survey collected responses from 600 business leaders involved in decisions to terminate employees at companies that had layoffs over this time.
According to the survey, 50 per cent of companies admitted that at least 75 per cent of their layoffs in the past year were not necessary for cutting costs. Furthermore, 80 per cent say their company chose to layoff an employee instead of firing them. The reasons their company disguised terminations as layoffs included maintaining company morale (62 per cent), avoiding wrongful termination claims (59 per cent), and providing severance (54 per cent). Additionally, 38 per cent cited the desire to avoid hurting the employee’s feelings.
Business leaders say the reasons for actually wanting to fire these employees were poor performance (78 per cent), violation of company policies (46 per cent), and attendance issues (45 per cent).
“It’s a concerning scenario when performance-based terminations are masked as layoffs,” says ResumeBuilder’s Chief Career Advisor Stacie Haller. “Understanding the true reasons behind these decisions is crucial for both employees and job seekers as they navigate their careers.”
Survey results also spotlight how performance influences layoff decisions. Of business leaders surveyed, 31 per cent indicate that performance always influences their layoff decisions, while 51 per cent say it often does.
This survey was commissioned by ResumeBuilder.com and conducted online by the survey platform Pollfish. It was launched on July 22, 2024, and 600 business leaders completed the survey. Eligibility criteria included all participants had to be over 25, have a household income of at least $75,000, have an education level above high school, have a manager-level role or higher, and work at a company with more than 10 employees. Respondents also had to indicate they are involved in termination decisions and their company has had layoffs in the past year via screening questions.
