Exit Strategies Matter: New Research Reveals Why Poorly Managed Layoffs Harm Company Morale, Trust, and Brand Confidence

 — Careerminds survey shows career-transition support boosts employee engagement and strengthens company reputation —

WILMINGTON, Del., Sept. 30, 2025 /PRNewswire/ -- Careerminds, a leading global provider of outplacement and career-development services, today announced the results of new survey-based research on the state of career transition in large organizations. The findings — called the Improving Career Transition Report — reveal both the prevalence of layoffs and the crucial role that career-transition support plays in protecting brand reputation, morale, and retention.

As context, the common industry term "career transition" refers to the structured support employers provide when employees leave the company, including services such as career coaching, job-search assistance, and reskilling. This process helps individuals secure new opportunities more quickly while also preserving company morale and reputation.

The study of more than 200 human resources and procurement leaders found that 61% of organizations have conducted layoffs in the past two years, with that figure rising to 73% among employers with more than 25,000 employees. Looking ahead, more than half (52%) of those who have not recently reduced staff expect to do so within the next two years.

"The inevitability of workforce change makes it imperative for companies to prioritize career-transition support — not just for departing employees, but for the health of the business as a whole," said Raymond Lee, President of Careerminds. "A strong transition strategy protects brand reputation, sustains morale, and reassures employees that they are valued at every stage of their journey."

Key Findings from the Report:

• Layoffs are likely and ongoing: 61% of organizations reported conducting redundancies in the past two years, and 52% of those that have not yet done so anticipate layoffs within the next 24 months.
  
  
• Career transition is a leadership imperative: 90% of respondents said having a formalized career-transition strategy is essential, with 55% calling it "very important," and only 1% saying it is "not at all important."
  
  
• Brand and morale top the list of concerns: Protecting company reputation (55%) and preventing disengagement/low morale (55%) are the joint top reasons for offering career-transition support, followed by maintaining trust in leadership (53%).
  
  
• Support drives retention and loyalty: Employees who rate their employer as "fair" or "poor" are 9.7× more likely to look for a new job within 12 months than those rating their employer as "excellent," underscoring the retention benefit of career-transition programs.
  
  
• Career transition is part of severance packages: 82% of organizations provide transition support as a standard part of severance, and larger employers are 63% more likely to offer five or more distinct services such as career coaching, job-search help, and reskilling.
  
  
• Clear business impact: 98% of companies reported a positive impact from providing transition support, with significant improvements in employee satisfaction (54%), employer-brand ratings (50%), and post-layoff productivity (38%).
  
  
• Outsourcing delivers superior results: 100% of organizations outsource at least some career-transition services, citing benefits such as reduced HR workload (44%), lower costs (32%), and improved compliance with labor laws (34%) compared to in-house programs.

Providing practical guidance for employees, Amanda Augustine, a career expert and certified professional career coach (CPCC), added: "The new research shows that career-transition support is critical for employees navigating layoffs. Services like career coaching, job-search assistance, and reskilling help individuals leave on good terms, maintain confidence, and secure meaningful roles faster. Engaging with these resources not only supports your next career move but also contributes to a positive workplace culture overall."

As layoffs continue to shape the workforce landscape, the research underscores that career transition support is no longer optional. Companies that invest in robust transition offerings not only protect their brand but also strengthen employee loyalty, retention, and overall organizational resilience.

These quarterly reports from Careerminds provide organizations with a critical pulse on workforce trends and best practices, helping HR and business leaders stay informed and proactive in managing talent transitions. In the coming months, the company will be releasing additional findings for its Q4 2025 report, offering new insights into how companies can strengthen career-transition strategies, enhance employee engagement, and navigate workforce changes more effectively.

About Careerminds:

Careerminds is a leading global provider of virtual outplacement and career-transition solutions. With a people-first, tech-enabled approach, Careerminds partners with organizations to manage workforce transitions with compassion, customization, and measurable results. Visit careerminds.com for more information and follow them on LinkedIn, Instagram, Facebook, X, and YouTube.

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SOURCE Careerminds