How Layoffs Impact Organizations and Employee Mental Health

This year has been marked by significant layoffs, with major companies like Tesla, Google, Amazon, Microsoft, Boeing, and PepsiCo all implementing large-scale job cuts. If you want to trim your company’s fat, cut costs, keep investors satisfied, and stay in business, layoffs are often the first step… but are they always justified? Of course not, but they’re a harsh reality of running a business — and they’re not all created equal.

Take Meta, for example. In 2022, they laid off 11,000 employees, they demonstrated what it means to be virtuous in their approach. Each employee they let go received a thoughtful video apology from Mark Zuckerberg and a severance of 16 weeks base pay plus two additional weeks for every year of service, a PTO payout, six months of health insurance for employees and their families, three months of career support, and immigration support for workers with visas.

While that’s all well and good, what’s often missing from the conversation is how layoffs impact mental health — especially considering the fact that a significant amount of people have recently been laid off for the first time and may lack the coping skills necessary to process it. For others, their entire identities may have revolved around their careers or their companies, so they may feel like they’ve lost everything. And then there are the people who didn’t lose their jobs yet experience survivor’s guilt. Although each of these employees face different challenges, layoffs will inevitably impact their mental health. So, what can we do to help?

Symptoms and Solutions for Mental Health Issues After Job Loss

The two most common mental health issues are depression and anxiety, so it makes sense that people often experience these issues after being laid off. Because our identities are often deeply intertwined with our work, unemployment can quickly ramp up feelings of sadness or depression. Plus, unplanned job hunting combined with uncertainty about the future is a recipe for anxiety. These issues can be debilitating, so it’s important to grasp how they might show up in our loved ones. Here are some signs and symptoms, along with a few ways you can help.

Symptom: Loss of interest or pleasure in activities they previously enjoyed

Strategy: Find small ways to get them back into their hobbies, but try not to overwhelm them. For example, if they love long-distance running but have lost the energy to exercise at all, offer to join them on a short walk or jog on a scenic trail.

Symptom: Thoughts of suicide or signs of self-harm

Strategy: Validate their feelings and experiences, then encourage them to seek professional help. Please call 988 in a severe crisis.

Symptom: Excessive worrying about future job opportunities, finances, relationships, or everyday life

Strategy: Point out their strengths, talents, and skills. If they haven’t taken one before, suggest a strengths-finder test. Offer to help them plan for the future, set goals, create a budget, search for jobs, proofread their resume, shop for clothing for interviews or to just listen and provide moral support.

Mental Health Strategies for Organizations After Layoffs

Layoffs almost always harm the mental health of the employees who are left behind. For one, they usually occur in phases over 3-6 months, which may spike employees’ anxiety since they’re not sure if they’ll be next in line. Then, once all layoffs are final, companies need to tend to the overall mental health needs of their remaining employees, who may have lost beloved coworkers who had become their close friends. They may also be taking on more responsibilities — without a pay raise. All of these factors affect mental health, so here are a few things companies can do to help:

• Consistently provide and promote any available mental health resources.
• Provide continuous opportunities for conversation.
• Find ways to show employees you appreciate them and value their overall wellbeing.
• Offer mental health education and training.
• Partner with a local mental health agency.
• Listen to employees’ perspectives and feedback.
• Offer empathy and reassurance.

Whether you’ve personally been laid off, your partner was, or your organization just conducted mass layoffs, know that it is possible to bounce back. You just need the right mindset, tools and support system — and as always, that will look different for every person or company.

WORD ON THE STREET

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Benefits are a big part of helping employees do their best at work, and for women who now make up 57% of the workforce they’re especially important. Things like mental health support, reproductive health, and maternity benefits aren’t just “nice to have” anymore; they’re essential. These benefits don’t just help women they help businesses too, by cutting down on missed workdays and boosting engagement and productivity. So, what can HR professionals do to make sure they’re hitting the mark?

Start by taking a hard look at the benefits your organization offers. Are they really meeting the needs of women on your team? Make sure the options are flexible and practical enough to fit different situations. Investing more in mental health resources and creating a workplace culture where people feel supported can make a big difference. And don’t forget to tackle any barriers that might prevent employees from using these benefits, fair access is key. Small changes here can have a big impact on keeping employees happy and engaged.

Tools for Thriving

If you’re a bit of a nerd like me and love digging into research, data, and real-life strategies that actually work, one of my favorite go-to resources is the American Psychological Association (APA) website. It’s packed with the latest trends, research, and insights on psychology, mental health, and workplace well-being. Honestly, I’d recommend getting a membership and joining the community. It’s a great way to grow professionally and pick up tools to help you thrive both at work and in life.

About Michael Dickerson

Michael Dickerson is the CEO of Dickerson Consulting Group, specializing in stress management, workplace mental health, and employee wellbeing. He is the author of Struggle Well at Work: Positive Mental Health Strategies for a Flourishing Workforce and is a national speaker, trainer, and consultant on employee wellbeing and workplace mental health. Visit website www.dickersoncg.com.