7 in 10 U.S. Leaders Anticipate Layoffs in Next Year

NEW YORK, October 28, 2026 /CourierPR/ -- A new study by LHH reveals that a significant majority of U.S. leaders anticipate layoffs or reductions in force at their organizations in the next 12 months. According to the 10th edition of LHH's U.S. Severance and Separation Benefits Benchmark Study, 69% of U.S. leaders expect such actions, marking a nearly doubled expectation from 36% in the previous year.

The study, which surveyed 600 HR and business leaders at U.S. organizations with 500 or more employees that offer severance and outplacement services, also highlights a shift in severance practices. While a majority of organizations (56%) report making severance policies more generous, 38% say they have made them less generous, compared to just 9% in the previous study, conducted in 2024. This indicates a more balanced approach to severance packages, with a significant portion of companies choosing to maintain or even reduce the generosity of their policies.

Career transition support is also expanding across the workforce. More organizations are offering such services to non-exempt employees (79%, up from 58%) and exempt employees (85%, up from 61%). Among those supporting non-exempt employees, 38% offer comprehensive programs, including one-on-one coaching and online tools, to help departing employees find their next opportunities.

Organizations are considering alternatives to layoffs. Nearly all respondents (99%) say their organizations routinely evaluate alternatives to involuntary reductions, with retirement incentives (42%), voluntary departure programs (41%), redeployment (38%), and temporary leave (38%) being the most common options.

Finance is playing a bigger role in outplacement decisions. HR leads decisions about career transition support at 30% of organizations, down from 58% in 2024. CFOs now lead at 18%, up from 6%, and procurement at 13%, up from 2%.

The study, which was conducted by Census wide from September 9-22, 2026, with the sample split evenly between organizations with 500-4,999 employees and those with 5,000 or more, provides detailed benchmarks on severance eligibility, payment practices, benefits continuation, and career transition services across industries, company sizes, and employee levels. Organizations can also access a severance pay calculator to compare their practices with peers by industry, job level, and company size.