A new survey from resume-building platform Resume.org found that three in 10 companies will lay off employees before year-end, often during the weeks around major holidays, even though most say the timing was avoidable.
The November 2025 survey, which polled 1,008 U.S. business leaders about how companies are approaching layoffs during the 2025 holiday season, revealed that 31% say their company will conduct layoffs before the end of the year. Most expect to carry out cuts between Thanksgiving and Christmas at 57%, while 43% expect the week between Christmas and New Year’s and 32% say before Thanksgiving.
Sixteen percent of respondents said the timing hasn’t been finalized but will occur before 2026. Many admit 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 the first quarter of 2026 at 74% as the primary motivator, followed by avoiding bonus payouts at 42% and unused PTO at 35%.
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Sixty-nine percent of companies are using artificial intelligence to determine which roles to eliminate, and 66% will use AI in the process itself.
When notifying employees, companies prefer more personal formats like in-person one-on-one meetings at 25%, personalized emails at 21%, or virtual one-on-one meetings at 16%.
Only 58% of companies say all laid-off employees will receive severance, while 35% say only some will and 6% say none will. Among those offering severance, 34% provide two weeks’ pay and 30% provide three to four weeks. About two-thirds say they are offering job placement support.
Despite ethical concerns, most companies will still reward executives. Eighty-two percent of business leaders say executives will receive bonuses this year, and 57% say their company is still hosting a holiday party.
Kara Dennison, Resume.org’s head of career advising, says end-of-year layoffs are common because companies finalize budgets and headcount in December, but notes that “for the person losing their job, the timing is brutal” and that hiring slowdowns make the impact even more severe.
Photo credit: Dragon Claws/iStock
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