Two-Thirds of HR Leaders Expect Layoffs in 2027

What the survey found

Talent solutions firm LHH surveyed 600 U.S.-based HR and business leaders and found that nearly two-thirds of HR leaders, 72% of business leaders overall, and 80% of CEOs expect their organisations to carry out layoffs in the next 12 months, according to HR Dive reporting published on 5 November 2026. The findings point to a broad expectation of workforce reductions across industries, not just isolated pockets of the economy.

The numbers behind the trend

Despite the widespread expectation of cuts, the report says 99% of organisations surveyed said they routinely examine alternatives to involuntary redundancies. Those alternatives include retirement incentives (cited by 42% of respondents), voluntary departure programmes (41%), redeployment to other roles (38%), and temporary leave (38%).

On career transition support — services that help departing employees find new work — access has expanded. According to the study, 79% of non-exempt workers (typically hourly or non-managerial employees) can now use these services, up from 58% in 2024. For exempt employees (salaried or managerial staff), the figure rose to 85%, up from 61%.

At the same time, HR teams are losing control of outplacement decisions. HR led those decisions at only 30% of organisations, down sharply from 58% in 2024. CFOs now lead at 18% of companies (up from 6%), and procurement departments at 13% (up from 2%).

Context: technology jobs most at risk

The report highlights that technology sector roles face the sharpest pressure, with tech layoffs increasing 67% year over year as of July, ahead of the finance and government sectors. LHH President John Morgan noted in a statement that workforce reductions are "no longer limited to periodic rounds tied to budget cycles or downturns," and that organisations investing in AI are still working out what that means for their people.

Morgan also called on leaders to treat workforce planning as a continuous process, integrating reskilling, redeployment, and career transition into a single ongoing strategy rather than a reactive response to downturns.

Why it matters for job seekers

• If you work in technology, be aware that the sector recorded the steepest rise in layoffs year over year as of July, according to the LHH survey reported by HR Dive, making it worth building skills that transfer across industries.
• If you are a non-managerial or hourly worker facing redundancy, consider asking your employer about career transition services, as access for this group has grown significantly since 2024, per the study.
• If you are in a mid-career or senior role, note that redeployment and voluntary departure programmes are being explored by a large share of organisations as alternatives to outright cuts, which may create internal mobility opportunities.
• If you are job hunting in 2026 or early 2027, the data suggests a competitive market is likely ahead, making it valuable to keep professional networks active and skills current.

Audience note: This survey covers U.S.-based organisations, but the trend of AI-driven workforce restructuring and rising layoff expectations is relevant to professionals in technology and other sectors worldwide.