Nine in 10 HR Leaders Currently Pushing Through Redundancies

Why It Matters

The wave of restructurings threatens talent pipelines and raises rehiring costs, forcing organisations to rethink workforce planning and outplacement support. It also signals a looming skills confidence gap that could hamper productivity across the UK economy.

Key Takeaways

• 87% of UK HR leaders plan redundancies within 12 months
• Redundancies driven by skills displacement, AI, and market shifts
• 78% of workers lack clarity on future‑ready skills
• Only 19% of employees experience promised redeployment programmes

Pulse Analysis

The LHH Career Redeployment and Outplacement Trends Report, based on surveys of 3,000 HR leaders and 8,000 employees across six countries, reveals a striking appetite for restructuring in the UK. Nearly nine in ten HR executives say their organisations have already executed or are preparing redundancies, a shift largely attributed to rapid AI integration, evolving skill requirements and volatile market conditions. This trend mirrors broader macro‑economic uncertainty and underscores the need for strategic workforce agility beyond traditional cost‑cutting measures.

For employees, the impact is palpable. Over two‑thirds express anxiety about the economy, and a striking 78% admit they cannot identify the skills needed for future growth, highlighting a widening "skills confidence gap." The psychological toll is evident: increased workloads, eroding morale, and a loss of trust in leadership, with one in four workers reporting diminished confidence in senior management. Such sentiment can depress productivity and elevate turnover risk, amplifying the hidden costs of frequent layoffs.

HR leaders themselves face a paradox. While 77% of firms claim to provide targeted redeployment programmes, merely 19% of employees confirm access to these resources, exposing a gap between policy and practice. Moreover, 73% of HR executives worry about public scrutiny of redundancy conversations, and many cite insufficient analytics to justify alternative approaches. The report argues that robust outplacement and upskilling initiatives are not just humane but financially prudent, reducing rehiring expenses that now exceed the cost of proactive redeployment. Companies that invest in transparent, future‑ready career transition support can safeguard brand reputation, retain critical capabilities, and mitigate the long‑term talent shortage looming across the UK market.