Layoffs are bad enough, but survivor guilt also must be considered

The anguish of a layoff doesn’t end when the last of the departing employees are gone. Those workers left behind present a new problem for employers to tackle: survivor guilt. A recent survey from learning and engagement platform Kahoot! highlights how damaging layoffs can be to an organization as the remaining employees adjust.

Impact on survivors

Often, employers conduct layoffs to cut costs, but what comes after the layoff can work against that goal, according to the Kahoot! 2025 Layoff Survivor Survey, which was released in June. The research includes responses from 1,064 full-time U.S. workers who experienced at least one layoff in the past three years.

The survey found that 65% of layoff survivors said they made a costly mistake after a layoff, and that number rose to 77% among Gen Z employees. The mistakes were a result of workers being thrown into work they were unprepared to take on, and that lack of preparedness made them hesitant to act.

Seventy percent of the survey respondents said a structured re-onboarding program would have eased the transition, but just 27% received one. Morale also takes a hit after a layoff, with 49% of the survey respondents reporting a drop in morale and engagement after a layoff.

Following the layoff, most employees had to take on new responsibilities without guidance. As a result, 84% said they spent time during the workweek teaching themselves how to perform their new tasks, often by trial and error or online resources like Google and YouTube.