What are the prospects for laid-off workers?
Heidi Roberts has been tirelessly searching for a new job since being laid off from a financial company in Knoxville, Tennessee in October. Despite applying to over 60 jobs, she has only received seven callbacks, leaving her feeling disheartened. The job market has been tough, with over 1.1 million Americans laid off in 2025, the highest number since the 2020 COVID pandemic.
According to Andrew Challenger of Challenger, Gray & Christmas, the spike in layoffs can be attributed to companies over-hiring in previous years, economic headwinds, and the increasing use of artificial intelligence in the workforce. The impact of AI is a major concern, with nearly 12% of the labor market at risk of being replaced by automation.
The Shift in Corporate Layoffs
Unlike previous times when layoffs were a result of struggling businesses, today’s layoffs are happening despite high corporate profits. Annie Lowrey from The Atlantic attributes this trend to economic uncertainties stemming from factors like tariffs, trade wars, and high borrowing costs. Companies are choosing to cut costs and lay off workers as a result.
While AI is a significant factor in layoffs, it ranks sixth behind the overall economy and restructuring. Jason Leverant from AtWork emphasizes that companies are adopting AI to stay competitive and keep shareholders happy, even if it means cutting jobs.
A Human Approach to Layoffs
Bob Chapman, CEO of Barry-Wehmiller, believes that layoffs are a failure of leadership and a last resort. He emphasizes the importance of caring for employees beyond just economic transactions. Layoffs, in his view, dehumanize the workforce and have a lasting impact on people’s lives.
Federal Reserve Chair Jerome Powell’s recent decision to lower interest rates reflects concerns about a vulnerable job market. With layoffs expected to continue into the new year, many Americans are feeling the impact of job uncertainty during the holiday season.
Despite the challenges, there is a glimmer of hope for some, like Heidi Roberts who recently secured a new job. Her advice to others still searching for work is to keep pushing forward and believe in finding the right opportunity. As she looks forward to starting her new job in the new year, she remains grateful for the blessings in her life.
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Story produced by Sara Kugel. Editor: Carol Ross.
