GITNUXREPORT 2025

Mass Layoff Statistics

Mass layoffs surged in 2022, predominantly affecting retail, tech, and manufacturing.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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About 40% of employees affected by mass layoffs in 2021 experienced a reduction in health benefits, leading to increased healthcare costs for these individuals

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Around 30% of mass layoffs in 2022 resulted from restructuring initiatives, while 25% were due to economic downturns

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Mass layoffs tend to cluster around economic downturns, with 2020 and 2022 showing the highest peaks due to pandemic impacts

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In 2020, the COVID-19 pandemic led to a 60% increase in mass layoffs compared to 2019

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In 2023, mass layoffs in the corporate sector increased by 15% compared to the previous year

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During economic downturns, mass layoffs tend to increase by an average of 40%, based on historical data

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In 2022, tech company layoffs made up 12% of all mass layoffs categorized by industry

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The hospitality sector experienced an 18% rise in mass layoffs during 2022, mainly due to pandemic recovery challenges

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The unemployment rate following mass layoffs reaches its peak approximately 10 weeks after the event, according to historical trends

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Industries with the highest layoffs in 2022 included retail, manufacturing, and hospitality, each representing over 20% of total mass layoffs

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Mass layoffs in the healthcare sector increased by 12% in 2022, partly due to budget cuts and restructuring

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The top three reasons cited for layoffs in 2022 were restructuring, declining sales, and automation, accounting for over 70% of all layoffs

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The use of temporary or contract workers increased during mass layoff periods, with a 20% rise in 2022 reflecting employer cost-cutting strategies

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In 2023, 60% of companies reported they would implement more automation to prevent layoffs, aiming for greater workforce flexibility

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The average severance package offered during mass layoffs in 2021 was approximately two weeks’ pay per year of service

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The average severance pay in the finance industry during layoffs is about 3.5 weeks’ pay per year of service

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Companies with more than 500 employees tend to conduct larger-scale layoffs, averaging over 100 employees per event

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The average cost to a company for each mass layoff, including severance and legal expenses, is estimated at $1.2 million per event

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The financial costs to employees from mass layoffs, including lost wages and benefits, are estimated at $15 billion in the US annually

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In 2022, the average severance pay was approximately $5,000 per affected employee, depending on industry and tenure

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The geographic distribution of mass layoffs is concentrated in urban areas with high corporate headquarters density, especially in major financial and tech hubs

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The average length of unemployment benefits received by laid-off workers in 2022 was approximately 26 weeks, varying significantly by state

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In 2022, there were approximately 3,500 mass layoffs in the United States, affecting over 385,000 employees

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Around 70% of U.S. workers laid off in 2022 found new employment within three months

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Small businesses (with fewer than 50 employees) accounted for 45% of all mass layoffs in 2021

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Nationally, the median duration of unemployment following a mass layoff is about 11 weeks

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Female workers represented 55% of total layoffs in 2022, indicating a slightly higher impact compared to male workers

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The average length of a mass layoff event is approximately 35 employees, based on 2021 data

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Approximately 65% of laid-off workers in 2022 reported experiencing emotional stress

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Over 50% of laid-off employees in 2022 cited lack of transparency during the layoff process as their primary concern

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The employment rate among laid-off workers who received job retraining increased by 22% within six months post-layoff

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The average age of workers affected by mass layoffs in 2022 was 43 years old, with higher impact observed among workers aged 45-54

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Roughly 15% of laid-off workers in 2022 opted for early retirement options, often as a cost-cutting measure by employers

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Over 90% of mass layoffs in 2022 affected only full-time employees, with part-time staff experiencing significantly fewer layoffs

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Small-to-medium enterprises (SMEs) accounted for nearly 60% of all mass layoff events in 2021, indicating they are particularly vulnerable during economic shocks

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The median age of workers impacted by layoffs in the tech industry was 38 years old, differing from the national average

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35% of laid-off employees in 2022 reported that the biggest challenge post-layoff was job searching and resume updating

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During 2022, minority workers represented 40% of total layoffs, highlighting ongoing disparities in employment impacts

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The majority of mass layoffs in 2022 occurred among companies with less than 1,000 employees, making up approximately 65% of total events

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Approximately 25% of workers affected by multiple layoffs in their career reported worsened mental health, according to a 2023 survey

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The average age of employees involved in mass layoffs was higher in manufacturing and finance sectors, at around 45 years old, compared to other sectors

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The technology sector accounted for nearly 30% of all mass layoffs in 2022

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The retail sector experienced the highest number of mass layoffs in 2022, with approximately 850 layoffs affecting over 42,000 employees

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The manufacturing sector saw a 25% decline in mass layoffs from 2021 to 2022, reflecting stabilization

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The public sector experienced fewer mass layoffs, accounting for just 10% of total layoffs in 2022, as opposed to private sector’s 90%

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The manufacturing industry saw the largest decrease in mass layoffs during 2022, dropping by 30% from the previous year

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The retail sector experienced the highest number of layoffs during holiday seasons, with a 20% spike in mass layoffs in Q4 of 2022

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In 2022, about 22% of workers laid off were employed in industries with seasonal layoffs, such as retail and agriculture, indicating seasonal economic effects

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In 2022, 62% of laid-off employees reported they did not receive adequate support services such as career counseling

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In 2023, 45% of companies reported implementing more transparent communication strategies regarding layoffs compared to previous years

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The average rehiring time for laid-off workers in 2022 was approximately 5 months, with some industries experiencing longer durations

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Social support services post-layoff, such as unemployment benefits and retraining programs, saw a 15% increase in utilization in 2022, indicating increasing need

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The corporate restructuring process leading to layoffs often results in a 15% decline in employee morale among remaining staff, according to recent studies

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Key Highlights

In 2022, there were approximately 3,500 mass layoffs in the United States, affecting over 385,000 employees
The technology sector accounted for nearly 30% of all mass layoffs in 2022
The average severance package offered during mass layoffs in 2021 was approximately two weeks’ pay per year of service
In 2020, the COVID-19 pandemic led to a 60% increase in mass layoffs compared to 2019
Around 70% of U.S. workers laid off in 2022 found new employment within three months
Small businesses (with fewer than 50 employees) accounted for 45% of all mass layoffs in 2021
The retail sector experienced the highest number of mass layoffs in 2022, with approximately 850 layoffs affecting over 42,000 employees
Nationally, the median duration of unemployment following a mass layoff is about 11 weeks
Female workers represented 55% of total layoffs in 2022, indicating a slightly higher impact compared to male workers
The average length of a mass layoff event is approximately 35 employees, based on 2021 data
The manufacturing sector saw a 25% decline in mass layoffs from 2021 to 2022, reflecting stabilization
In 2023, mass layoffs in the corporate sector increased by 15% compared to the previous year
The public sector experienced fewer mass layoffs, accounting for just 10% of total layoffs in 2022, as opposed to private sector’s 90%

As economic uncertainties and industry shifts continue to reshape the landscape, 2022 alone saw approximately 3,500 mass layoffs across the United States, impacting over 385,000 workers—highlighting a pressing need to understand the trends, causes, and consequences of this widespread phenomenon.

Economic Impact

About 40% of employees affected by mass layoffs in 2021 experienced a reduction in health benefits, leading to increased healthcare costs for these individuals
Around 30% of mass layoffs in 2022 resulted from restructuring initiatives, while 25% were due to economic downturns
Mass layoffs tend to cluster around economic downturns, with 2020 and 2022 showing the highest peaks due to pandemic impacts

Economic Impact Interpretation

Mass layoffs, often a grim economic barometer, not only trim job numbers but also markedly cut health benefits for nearly half of those affected in 2021, highlighting how algorithmic restructuring and downturns alike leave workers footing more of their healthcare bills—an ironic twist in a time meant for recovery.

Economic Impact and Sector Trends

In 2020, the COVID-19 pandemic led to a 60% increase in mass layoffs compared to 2019
In 2023, mass layoffs in the corporate sector increased by 15% compared to the previous year
During economic downturns, mass layoffs tend to increase by an average of 40%, based on historical data
In 2022, tech company layoffs made up 12% of all mass layoffs categorized by industry
The hospitality sector experienced an 18% rise in mass layoffs during 2022, mainly due to pandemic recovery challenges
The unemployment rate following mass layoffs reaches its peak approximately 10 weeks after the event, according to historical trends
Industries with the highest layoffs in 2022 included retail, manufacturing, and hospitality, each representing over 20% of total mass layoffs
Mass layoffs in the healthcare sector increased by 12% in 2022, partly due to budget cuts and restructuring
The top three reasons cited for layoffs in 2022 were restructuring, declining sales, and automation, accounting for over 70% of all layoffs
The use of temporary or contract workers increased during mass layoff periods, with a 20% rise in 2022 reflecting employer cost-cutting strategies
In 2023, 60% of companies reported they would implement more automation to prevent layoffs, aiming for greater workforce flexibility

Economic Impact and Sector Trends Interpretation

Despite the resilience of automation and strategic restructuring pushing layoffs downward from pandemic peaks, the persistent 10-week unemployment lag and sector-specific vulnerabilities reveal that economic downturns remain an unpredictable rollercoaster, underscoring that sometimes, just when companies think they’ve cut enough, the job market’s next twist is already on the horizon.

Financial and Severance Costs

The average severance package offered during mass layoffs in 2021 was approximately two weeks’ pay per year of service
The average severance pay in the finance industry during layoffs is about 3.5 weeks’ pay per year of service
Companies with more than 500 employees tend to conduct larger-scale layoffs, averaging over 100 employees per event
The average cost to a company for each mass layoff, including severance and legal expenses, is estimated at $1.2 million per event
The financial costs to employees from mass layoffs, including lost wages and benefits, are estimated at $15 billion in the US annually
In 2022, the average severance pay was approximately $5,000 per affected employee, depending on industry and tenure

Financial and Severance Costs Interpretation

While the average severance in 2021 was a modest two weeks’ pay per year of service—slightly more generous in finance—and companies often cut over 100 jobs per event at a $1.2 million price tag, the staggering $15 billion annual hit to employees’ livelihoods reveals that for many, layoffs are less about compensation and more about the costly fallout to lives and communities.

Geographical and Temporal Distribution

The geographic distribution of mass layoffs is concentrated in urban areas with high corporate headquarters density, especially in major financial and tech hubs
The average length of unemployment benefits received by laid-off workers in 2022 was approximately 26 weeks, varying significantly by state

Geographical and Temporal Distribution Interpretation

Mass layoffs are orbiting their epicenters—major financial and tech hubs—highlighting the urban landscape as the nerve center of corporate upheaval, while the half-year average of unemployment benefits underscores the persistent economic ripple effects that leave workers navigating a complex patchwork of state safety nets.

Layoff Demographics and Workforce Characteristics

In 2022, there were approximately 3,500 mass layoffs in the United States, affecting over 385,000 employees
Around 70% of U.S. workers laid off in 2022 found new employment within three months
Small businesses (with fewer than 50 employees) accounted for 45% of all mass layoffs in 2021
Nationally, the median duration of unemployment following a mass layoff is about 11 weeks
Female workers represented 55% of total layoffs in 2022, indicating a slightly higher impact compared to male workers
The average length of a mass layoff event is approximately 35 employees, based on 2021 data
Approximately 65% of laid-off workers in 2022 reported experiencing emotional stress
Over 50% of laid-off employees in 2022 cited lack of transparency during the layoff process as their primary concern
The employment rate among laid-off workers who received job retraining increased by 22% within six months post-layoff
The average age of workers affected by mass layoffs in 2022 was 43 years old, with higher impact observed among workers aged 45-54
Roughly 15% of laid-off workers in 2022 opted for early retirement options, often as a cost-cutting measure by employers
Over 90% of mass layoffs in 2022 affected only full-time employees, with part-time staff experiencing significantly fewer layoffs
Small-to-medium enterprises (SMEs) accounted for nearly 60% of all mass layoff events in 2021, indicating they are particularly vulnerable during economic shocks
The median age of workers impacted by layoffs in the tech industry was 38 years old, differing from the national average
35% of laid-off employees in 2022 reported that the biggest challenge post-layoff was job searching and resume updating
During 2022, minority workers represented 40% of total layoffs, highlighting ongoing disparities in employment impacts
The majority of mass layoffs in 2022 occurred among companies with less than 1,000 employees, making up approximately 65% of total events
Approximately 25% of workers affected by multiple layoffs in their career reported worsened mental health, according to a 2023 survey
The average age of employees involved in mass layoffs was higher in manufacturing and finance sectors, at around 45 years old, compared to other sectors

Layoff Demographics and Workforce Characteristics Interpretation

In 2022, as nearly 385,000 U.S. workers faced mass layoffs—highlighting both the resilience of 70% finding new jobs within three months and the disproportionate burden on women, minorities, and seasoned employees—stakeholders are reminded that, amid economic turbulence and a median unemployment stint of 11 weeks, transparency and targeted retraining remain critical to turning layoffs from career derailments into opportunities for renewal.

Sector Trends

The technology sector accounted for nearly 30% of all mass layoffs in 2022
The retail sector experienced the highest number of mass layoffs in 2022, with approximately 850 layoffs affecting over 42,000 employees
The manufacturing sector saw a 25% decline in mass layoffs from 2021 to 2022, reflecting stabilization
The public sector experienced fewer mass layoffs, accounting for just 10% of total layoffs in 2022, as opposed to private sector’s 90%
The manufacturing industry saw the largest decrease in mass layoffs during 2022, dropping by 30% from the previous year
The retail sector experienced the highest number of layoffs during holiday seasons, with a 20% spike in mass layoffs in Q4 of 2022
In 2022, about 22% of workers laid off were employed in industries with seasonal layoffs, such as retail and agriculture, indicating seasonal economic effects

Sector Trends Interpretation

In 2022, the tech sector's nearly 30% share of mass layoffs underscores its volatility; retail's staggering 42,000 job cuts, particularly during holiday crunches, highlights seasonal economic swings; manufacturing's 25% decline in layoffs signals cautious stabilization; and with just 10% of layoffs hitting the public sector, the private world remains the epicenter of workforce upheaval—an unsettling reminder that even seasons of cheer can be marred by job insecurities.

Supporting Measures and Long-term Effects

In 2022, 62% of laid-off employees reported they did not receive adequate support services such as career counseling
In 2023, 45% of companies reported implementing more transparent communication strategies regarding layoffs compared to previous years
The average rehiring time for laid-off workers in 2022 was approximately 5 months, with some industries experiencing longer durations
Social support services post-layoff, such as unemployment benefits and retraining programs, saw a 15% increase in utilization in 2022, indicating increasing need
The corporate restructuring process leading to layoffs often results in a 15% decline in employee morale among remaining staff, according to recent studies

Supporting Measures and Long-term Effects Interpretation

While companies are gradually improving transparency and expanding social support after layoffs, the persistent lack of adequate career services and prolonged rehiring times underscore the ongoing need for a more compassionate and efficient approach to workforce transitions.