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One-third of company owners are planning to fire employees during the holiday season: Survey

KANIKA SINGH RATHORE, 07/12/202507/12/2025

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One in three business leaders say they plan lay off during the holiday seasonDespite cruel times being avoidable, a new survey Has been found.

November 2025 survey, conducted by resume.org1,008 US business leaders were surveyed. Respondents were allowed to provide multiple answers if unsure, resulting in an overall response rate of 148 percent.

Of those who expected cuts, more than half (57 percent) said they probably would. Come between Thanksgiving and Christmas, While 43 percent expect the week between Christmas and New Year’s, and 32 percent said before Thanksgiving.

Another 16 percent said they have It is not certain when they will be laid off. But this will happen before 2026.

Additionally, more than a third (34 percent) of respondents acknowledged that layoffs “definitely” could have been delayed and 40 percent said they “probably” could have.

One in three business leaders say they plan to make layoffs during the holiday season, despite concerns that tough times can be avoided

One in three business leaders say they plan to make layoffs during the holiday season, despite concerns that tough times can be avoided ,getty,

A number of reasons were given for reducing headcount, with the main reason being to cut costs ahead of the new financial quarter – with 74 per cent citing this as a reason. Others said it helps avoid paying bonuses (42 percent) or PTO (35 percent).

The common underlying drivers for the cuts were the economy and company performance, followed by increased AI or automation in the company.

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Cara Dennison, head of career advice at Resume.org, says the timing, while particularly bad in the current tough economic times, is not particularly surprising. The end of the year is a time for companies to finalize budgets, reevaluate headcount, and tie up other loose ends before January.

“Layoffs at the end of the year may make it easier for some teams to transition operations,” Dennison said.

“For the person losing their job, however, the time is brutal. The holidays add stress, and the loss of income, combined with the social expectations of the season, can make the experience feel lonelier.”

Despite holiday layoffs, most companies said they would still reward top executives, with 82 percent of executives yet to receive bonuses. More than half, 57 percent, say their company is still holding a holiday party

Despite holiday layoffs, most companies said they would still reward top executives, with 82 percent of executives yet to receive bonuses. More than half, 57 percent, say their company is still holding a holiday party ,getty images,

Denison says furlough cuts could create doubly instability for those workers, as the pace of hiring also slows during the same period. Offering healthy or extended severance packages can help mitigate the impact.

Despite this, according to resume.orgAccording to the survey, only 58 percent of companies said all laid-off employees will get severance, while 35 percent say only some will get it and 6 percent say no one will get it.

Of companies that offer severance, 34 percent said they offer two weeks’ pay and 30 percent said they offer three to four weeks’ pay.

Also, while most companies said they will still reward top executives, 82 percent of executives are yet to receive bonuses. More than half — 57 percent — say their company is still hosting a holiday party.

The survey findings come at a time when applications for unemployment benefits in the US, often seen as a proxy for layoffs and a close to real-time indicator of the health of the job market, fell to their lowest level in more than three years last week.

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The Labor Department reported Thursday that the number of Americans applying for jobless benefits for the week ending Nov. 29 fell to 191,000 from 218,000 the previous week — the lowest level since Sept. 24, 2022, when claims came in at 189,000.

Still, widespread concerns remain over the economy after a year of financial turmoil since Donald Trump returned to office in January.

The President’s global trade wars are Due to which there were fluctuations in the stock market wildly And his administration’s mission to deport millions of undocumented immigrants has also been affected Labor market. Trump’s tariff policies matter more to everyday Americans increased household costs An estimated $1,100 in 2025 – which will add an extra layer of concern for people who will soon be unemployed.

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