A significant number of American companies are preparing to let staff go during the upcoming festive period, according to a stark new survey. The data suggests that one in three business leaders intends to carry out layoffs over the holiday season, a move many concede could have been postponed.
Survey Details and the Timing of Cuts
The research, conducted by Resume.org in November 2025, polled 1,008 business leaders across the United States. Respondents were allowed to give multiple answers where uncertain, leading to a total response rate of 148 percent. The findings paint a grim picture for the weeks ahead.
Over half (57 percent) of those expecting to make cuts indicated the most likely window would fall between Thanksgiving and Christmas. A further 43 percent pointed to the week between Christmas and the New Year, while 32 percent said cuts would come before Thanksgiving. An additional 16 percent had not finalised dates but confirmed layoffs would occur before 2026.
Notably, a large proportion of respondents acknowledged the poor timing was not inevitable. Thirty-four percent said the layoffs "definitely" could have been delayed, and 40 percent said they "probably" could have been.
Drivers Behind the Decisions and the Human Cost
The primary reason cited for the staffing reductions was cost-cutting before the new financial quarter, with 74 percent of leaders giving this explanation. Other factors included avoiding bonus payments (42 percent) and sidestepping paid time off (PTO) liabilities (35 percent). Underlying drivers were broadly attributed to the economy, company performance, and increased adoption of AI or automation.
Kara Dennison, head of career advising at Resume.org, noted that while the timing is particularly harsh amid tough economic conditions, it is not wholly unexpected. "The end of the year is a time for companies to finalise budgets, reassess employee headcount, and tie up other loose ends before January," she said. "Laying off employees at the end of the year can make transitions operationally easier for some teams."
However, Dennison emphasised the severe impact on affected workers. "For the person losing their job, 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." She added that holiday cuts are doubly destabilising as hiring typically slows during the same period.
Severance, Bonuses, and a Contrast in Treatment
The survey revealed a mixed picture on support for departing staff. Only 58 percent of companies said all laid-off employees would receive severance pay, while 35 percent said only some would, and 6 percent stated none would. Among firms offering severance, 34 percent provide two weeks' pay, and 30 percent offer three to four weeks' worth.
This contrasts sharply with plans for company leadership. The vast majority of firms (82 percent) stated they would still be awarding bonuses to executives. Furthermore, over half (57 percent) confirmed they are still planning to host a holiday party.
These findings emerge against a complex jobs backdrop. Recent US Labor Department data showed applications for unemployment benefits fell to 191,000 for the week ending November 29, the lowest level since September 2022. Yet, wider economic anxieties persist following a year of financial turbulence.
Broader concerns centre on policies implemented since Donald Trump's return to office in January, including global trade wars causing stock market fluctuations and tariff policies estimated to have raised average household costs by $1,100 in 2025. These factors add an extra layer of financial anxiety for those facing job loss at what is traditionally a time of celebration.
