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'Forever layoffs' | The top challenges facing employers in 2026

Glassdoor logo green text
Glassdoor logo green text

A softening job market, rising AI adoption, and policy uncertainty are creating tension between workers and management, according to Glassdoor’s latest Worklife Trends report.

Heading into 2026, both employees and leaders face a challenging landscape.

Many employees feel their efforts aren’t rewarded with recognition or career growth, while employers, empowered by the shifting labor market, are making difficult decisions around layoffs and return-to-office mandates.

Trust in senior leadership has fallen sharply since its pandemic peak, says the report.

Glassdoor reviews highlight a growing gap, with mentions of “disconnect” up 24%, “miscommunication” 25%, “distrust” 26%, and “misalignment” a huge 149% year-on-year.

While ratings of leadership had rebounded slightly in 2025 after a low in early 2024, workers remain skeptical of decisions across industries, with management and consulting, media and communications, and technology seeing the largest declines.

Consulting firms, once poised to lead AI transformation, still struggle to deliver a coherent strategy; while media and tech workers contend with layoffs and high-pressure environments, fueling frustration and eroding trust.

Rise of the “forever layoff”


Rather than occasional large-scale cuts, companies are increasingly adopting smaller, but more regular rounds of job cuts - what Glassdoor terms the “forever layoff.” Smaller layoffs (under 50 employees) now account for 51% of WARN Act notices, up from 38% a decade ago. Though smaller-scale layoffs may avoid headlines, they heighten employee anxiety and can undermine morale. Glassdoor reviews suggest ongoing layoffs have left workers feeling insecure and overburdened, with implications for workplace culture in 2026.

Remote work and the slow RTO

Career opportunity ratings for remote and hybrid workers have fallen from 4.1 in 2020 to 3.5 in 2025. While work-life balance remains higher for remote and hybrid workers, promotions and recognition increasingly favor in-office employees. The “slow-mo” return-to-office trend means that employees who want career growth may feel compelled to compromise flexibility, while those prioritizing remote work risk falling behind.

AI adoption and early-career pay

AI’s impact on employee satisfaction remains modest. Occupations with high AI exposure have seen only minor declines in Glassdoor ratings, although early-career workers are slightly more affected.

Meanwhile, there is a some good news for recent graduates, in that after years of real wage stagnation, early-career salaries are finally surpassing 2020 levels, particularly in emerging cities.

The 'take-what-you-can-get' job market

With hiring at a 10-year low, job seekers are increasingly accepting offers rather than holding out, with the offer decline rate dropping 12% from 2023 to 2025.

It risks slowing career progression for many, deepening disengagement at a time when employee trust is already fragile.

Ahead of 2026, employers and employees alike will need to navigate overlapping challenges.

The path forward will require a balancing act in which leaders must manage strategic shifts without further eroding trust, while employees must make difficult trade-offs between flexibility, career growth, and job security.

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