‘Forever layoffs’ and disengagement for some, pay bumps for others: What’s in store for the 2026 workplace, says new report

 


Lately, it feels like every few days another big company announces a massive round of layoffs—sometimes cutting hundreds or even thousands of jobs.

But while those big headlines grab attention, a quieter trend is taking shape beneath the surface: smaller layoffs. According to Glassdoor’s latest 2026 work trends report, job cuts affecting fewer than 50 people have become the norm. These smaller-scale firings now make up 51% of WARN Act notices in 2025, up from just 38% in 2015.

In other words, the “forever layoff” has arrived—and it’s keeping workers on edge.

The lasting impact of constant cuts

Experts say companies might avoid bad press by doing smaller, rolling layoffs, but they pay another price: a long-lasting hit to morale. Glassdoor research shows that after layoffs, it takes more than two years for employee sentiment to bounce back. When companies make multiple rounds of cuts, the impact doubles—especially among managers, top performers, and new hires.

Confidence in leadership has also been sliding since mid-2023, now well below pandemic highs. Workers in media, consulting, and tech have reported the biggest drop-offs, driven by factors like AI disruption, industry consolidation, and the return of “hustle culture.”

Recent reviews on Glassdoor mention words like misalignment, distrust, disconnection, and hypocrisy more often when describing management—clear signs of growing discontent.

A bit of good news for younger workers

It’s not all doom and gloom, though. Wages are rising for early-career workers—those with four years or less of experience—giving them a little more financial breathing room heading into 2026.

Although landing that first job has been tougher thanks to AI adoption and fewer entry-level roles, the payoff is improving for those who do.

Some smaller cities are seeing the strongest wage growth since 2020, including Provo (UT), Boise (ID), Orlando (FL), Charleston (SC), and Austin (TX).

“For early-career workers figuring out where to build their careers, these emerging cities could offer great opportunities for income growth—even if the starting salaries aren’t the highest,” Glassdoor researchers wrote.

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