U.S. benchmark study reveals a shift in severance practices and broader access to career transition support
NEW YORK CITY, NY / ACCESS Newswire / October 28, 2026 / Nearly seven in 10 U.S. leaders (69%) expect layoffs or reductions in force at their organizations in the next 12 months, according to the 10th edition of LHH's U.S. Severance and Separation Benefits Benchmark Study.
The study also reveals a changing approach to employee separations. While a majority of organizations (56%) report making severance policies more generous, 38% say they've made them less generous, compared with just 9% in the previous study, conducted in 2024. Employers are also expanding access to career transition services across the workforce to support departing employees in finding their next opportunity.
The LHH study surveyed 600 HR and business leaders at U.S. organizations with 500 or more employees that offer severance and outplacement services.
Key findings include:
- Layoff expectations have nearly doubled. Two-thirds of HR leaders (66%) expect reductions in the next 12 months, up from 36% in 2024. Business leaders share this outlook (72%), particularly CEOs (80%).
- Severance practices are shifting. Thirty-eight percent of organizations say they've made their severance policies less generous, compared with 9% in the previous study. Meanwhile, 56% report making them more generous, down from 76%.
- Career transition support is reaching more of the workforce. More organizations offer career transition services to non-exempt employees (79%, up from 58%) and exempt employees (85%, up from 61%). Among those supporting non-exempt employees, 38% offer comprehensive programs, including one-on-one coaching and online tools.
- Organizations are considering alternatives to layoffs. Nearly all respondents (99%) say their organizations routinely evaluate alternatives to involuntary reductions, most commonly retirement incentives (42%), voluntary departure programs (41%), redeployment (38%) and temporary leave (38%).
- Finance is playing a bigger role in outplacement decisions. HR leads decisions about career transition support at 30% of organizations, down from 58% in 2024. CFOs lead at 18%, up from 6%, and procurement at 13%, up from 2%.
"Workforce reductions are among the hardest decisions leaders make, and they're no longer limited to periodic rounds tied to budget cycles or downturns," said John Morgan, President at LHH. "As organizations invest in AI and rethink how work gets done, they're still learning what works, what doesn't and what that means for their people. In the year ahead, pressure to deliver results will make workforce decisions harder to defer. Leaders need to make workforce planning an ongoing part of how they operate, with reskilling, redeployment and career transition built into one strategy."
LHH's U.S. Severance and Separation Benefits Benchmark Study provides detailed benchmarks on severance eligibility, payment practices, benefits continuation and career transition services across industries, company sizes and employee levels. Organizations can also access a severance pay calculator to compare their practices with peers by industry, job level and company size.
About the Study
LHH's 10th U.S. Severance and Separation Benefits Benchmark Study is based on a survey of 600 HR and business leaders at U.S. organizations with 500 or more employees that offer severance and outplacement services, conducted by Census wide from September 9-22, 2026. The sample was split evenly between organizations with 500-4,999 employees and those with 5,000 or more. To keep comparisons consistent, 2024 figures reflect U.S. organizations with 500 or more employees; the 2024 survey included HR leaders only. Certain questions also differed in wording and reference periods between studies.
About LHH
LHH empowers professionals and organizations to achieve bold ambitions and secure lasting impact through unique advisory services and professional talent solutions.
LHH's full suite of offerings connects solutions, making LHH a single talent partner for organizations. In a rapidly evolving landscape with complex challenges, we create value across the entire professional talent journey. From advising organizational change, to hiring great people, developing skills and nurturing leaders, to advancing individuals to the next stage of their careers, LHH makes talent a competitive edge.
We believe the future of work lies at the intersection of exceptional human care and innovation. Powered by science, technology, and proprietary data analytics, LHH's approach is crafted to align with business strategies and cultures, delivering powerful, sustainable, and measurable impact.
LHH has a team of over 12,000 professionals, across 60+ countries and more than 50 years of experience. As part of the Adecco Group, we bring together global excellence, local knowledge and centralized coordination for thousands of companies and millions of people worldwide.
To learn more about LHH, visit lhh.com.
Media Contact
Mary Beth Sanders
External Communications, LHH
marybeth.sanders@lhh.com
SOURCE: LHH
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/nearly-7-in-10-u.s.-leaders-anticipate-layoffs-in-the-next-year-1243240
