Layoffs are nothing new, but their frequency is. Many U.S. companies are increasingly falling into a “layoff loop,” cutting roles and rehiring for them within months, according to new research.

New data from Careerminds reveals that as many as 8 in 10 U.S.-based HR leaders have overseen layoffs in the past twelve months alone, with the majority saying the cuts happened within six months of each other. In many cases, the same jobs being cut are rehired less than a year later.

This results in a destabilized workforce with declining morale, and an impossible task for HR teams trying to maintain trust and culture in an environment that never stops shifting. Not only that, but recent research found that over 40% of employees say that layoffs negatively impacted their trust in leadership.

To better understand the rise of repeat layoffs, Careerminds surveyed full-time HR leaders across the U.S. to find out what’s driving this pattern and what impact it’s having internally for companies. 

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More than three-quarters of layoffs happen less than six months apart

New research reveals that nearly 78% of HR leaders say their company has conducted multiple rounds of layoffs in the past twelve months alone.

Careermind’s data found that among HR leaders who have overseen multiple layoffs, almost a third (27%) say that the cuts were made just one to two months apart, and 40% noted just 3-5 months between layoffs.

A staggering one in ten (9%) respondents reported less than a month between layoff rounds, suggesting that for many companies, short-term fixes may be replacing strategic planning, and at a cost to employee trust and engagement.

1 in 3 companies rehire for laid-off positions within twelve months

Nearly half (49%) of respondents say that their company rehired up to a quarter of the roles cut within just 12 months. Additionally, over a third (35%) of HR leaders stated that between 26-50% of laid-off roles came back within twelve months. Followed by 12% stating that between 51-75% of laid-off roles returned within the same period.

These quick reversals imply instability and misalignment between workforce strategy and business needs for many organizations.

1 in 2 HR leaders report a drop in morale and productivity after repeat layoffs

Repeat layoffs don’t just affect headcount; they impact culture. One in two (49%) HR leaders reported a significant drop in employee morale after serial layoffs. Many cite “survivor’s guilt” as a key driver behind declining engagement and rising turnover. Additionally, the data found that as many as 47% saw an overall drop in productivity.

Careerminds’ research found that in workplaces where layoffs have become routine, employees feel less connected, less motivated, and more inclined to leave, with over two-fifths (41%) of HR leaders seeing an increase in resignations as workers search for a new role with greater security. 38% of HR leaders affected by multiple layoffs also reported a loss in critical skills 

Financial instability was revealed as the key reason for multiple layoffs 

More than half (55%) of HR leaders stated that budget cuts or financial instability were the primary factor behind layoffs. Followed by 38% pointing to changing business priorities and 37% highlighting disruptions to the market, including the development of artificial Intelligence. 

Nearly 30% of HR leaders also report facing direct pressure from investors or board members when making workforce decisions. As a result, many HR teams are being asked to deliver both immediate cost savings and long-term stability, often without the necessary time, data, or decision-making autonomy to do either effectively.