As Layoffs Spike, Boards Have a New Job to Do
Directors are urged to weigh risks with strategic benefits of workforce reduction initiatives
By Lindsay Frost | November 24, 2025
Verizon is the latest corporation to announce plans to lay off more than 10,000 employees, joining businesses like Amazon and UPS in trend that has seen U.S. companies slash more than a million jobs this year.
Layoffs have soared to record levels, with companies citing AI, tariffs, cost cutting, and more as causes for cuts. Directors should not be surprised if management comes to the board with workforce reduction plans — if it hasn’t happened already, sources said.
The boardroom discussions surrounding these decisions should not only consider the short- and long-term strategic impacts, but the potential risks, sources said. Workforce professionals and directors urged boards to keep a strong pulse on human capital issues to keep job cuts from restraining future performance.
“The focus should be on how work itself is being redesigned… shifting from simple cost optimization to architecting the future of work”
Homaira Akbari, board member at Banco Santander and Landstar
“If boards haven’t had the pressure to make cuts yet, it’s a good time to start investing in the talent development areas where they do this science of figuring out who’s going to be the most important people to keep if threats come vdown the line later on,” said Andy Challenger, chief revenue officer at outplacement and HR coaching firm Challenger, Gray & Christmas.
“Just because it’s not happening in your industry yet doesn’t mean it won’t in the future.”