Burnout, Layoffs & The Great Reevaluation: Why Employee Experience is More Than Just a Perk

Organizations that still see employee experience as an HR function rather than a business priority will fall behind.

The Reality Check: The Workplace is Still in Flux

Companies may have moved past the peak of "The Great Resignation," but the underlying issues haven’t disappeared. Layoffs, economic uncertainty, and evolving workforce expectations continue to shape how employees engage with work.

• Burnout remains high despite wellness initiatives.

• Layoffs aren’t just cutting costs—they’re reshaping culture and trust.

• Employees want work that fits their lives—not the other way around.

  
  

The Burnout Crisis Isn’t Over

Despite corporate wellness programs and discussions about work-life balance, burnout is still widespread. Employees are stretched thin, juggling responsibilities in workplaces that often prioritize output over well-being.

• A Gallup study found that 76 percent of employees experience burnout at least sometimes, with 28 percent feeling burned out “very often” or “always.”

• Yet, companies continue to ask more from their people without addressing the root causes: unclear expectations, excessive workloads, and toxic cultures.

When burned-out employees feel unheard, they leave—or worse, they disengage while staying. (“quiet quitting”)

Layoffs Aren’t Just a Financial Decision—They’re a Brand Reputation and Culture Risk

In the last two years, mass layoffs have affected industries ranging from tech to manufacturing. But what many leaders forget is that layoffs impact more than just the employees who are let go.

• When employees see colleagues let go with little warning, it breeds uncertainty and fear.

• If a company fails to communicate layoffs with transparency and empathy, remaining employees become less engaged, less loyal, and more likely to leave voluntarily.

Candidates also take notice when layoffs happen. They watch how companies treat employees, especially during difficult times. A mishandled layoff can permanently damage an employer's reputation, making it harder to attract top talent in the future.

Layoffs should be a last resort, not a go-to cost-cutting strategy.

What Employees Actually Want in 2025

Gone are the days when a good salary and health benefits were enough to keep employees engaged. Today’s workforce wants more.

• Career well-being is taking priority over traditional job security. Employees are focusing on growth, fulfillment, and skill-building over simply staying in a job. Many are willing to leave toxic workplaces even without another job lined up.

• Flexibility and autonomy are now expectations, not perks. Employees want control over their work schedules and environments.

• Diversity, equity, and inclusion remain on the mind. People are paying close attention to how companies are responding to the executive order. The companies that already built DEI into their DNA don’t need to scramble for statements or performative policies—they are continuing organic, meaningful DEI initiatives. Employees and customers are watching closely. Companies that backtrack on their commitments will lose both trust and talent.

  
  

The Companies That Are Getting It Right

Some organizations understand that investing in employee experience isn’t just about making people happy—it’s a business strategy.

Example 1: The Spotify Approach – Trusting Employees

• When companies were forcing return-to-office mandates, Spotify put up a billboard in Times Square that said something like, “Our employees are adults. We trust them to work where they work best.”

• Instead of mandating in-office work, they doubled down on employee trust and autonomy.

• The result was higher engagement, lower attrition, and a reputation as a flexible, people-first employer.

  
  

Example 2: A Culture-First Layoff Approach

• One company, instead of using impersonal severance emails, approached layoffs with transparency, leadership visibility, and generous exit support.

• They held town halls explaining the financial decisions, provided extended healthcare benefits, and gave career transition support to impacted employees.

• The result was that employees—both those who stayed and those who left—felt respected, and the company maintained trust instead of damaging morale.

  
  

Final Thought: It’s Time to See Employee Experience as Strategy, Not a Soft Skill

Organizations that still see employee experience as an HR function rather than a business priority will fall behind.

For companies:

• Culture isn’t just a feel-good initiative—it’s a competitive advantage.

• Employees who feel valued, heard, and supported perform better, stay longer, and become brand advocates.

  
  

For employees:

• You deserve a workplace that prioritizes your well-being.

• Advocate for your needs, set boundaries, and recognize that burnout shouldn’t be a badge of honor.

  
  

What’s your take? Are companies truly prioritizing employee experience? Let’s discuss.