When Layoffs Meet the Holidays: The Hidden Toll on Mental Health
As reports roll in this fall, the scale of job cuts across sectors is alarming. October alone saw over 150,000 job losses, driven in large part by cost-cutting measures and increasing adoption of AI. Big-name tech firms are leading the charge, but retail, services, and other industries aren’t far behind.
Why the Timing Hurts Even More
There’s something especially painful about layoffs hitting so close to the holidays. This isn’t just about losing a job, it’s about the stress spiraling into other parts of life when expectations are supposed to be high.
Financial Strain: A recent survey from Modern Health found that two-thirds of workers feel real pressure to overspend during the holidays, just to keep up appearances or to give their loved ones something “special.”
Work Stress Doesn’t Stop: Even during holiday downtime, more than half of employees say they feel obligated to check work emails. For someone who’s just been laid off, or fearing that they could be, every notification suddenly feels loaded with anxiety.
Isolation & Emotional Expectations: The holidays often come with social expectations, being joyful, “in the spirit,” spending time with family, but for many, these expectations become another burden. Many report feeling lonelier or more isolated than usual.
The Mental Health Fallout
Losing a job can trigger a cascade of emotional responses, shame, grief, rage, loss of identity. Research shows that unemployment heightens stress, anxiety, and can lead to depression. When these feelings intersect with holiday expectations, the impact can be much worse.
What Can Help
For those laid off or worrying about it:
Acknowledge what you’re feeling. There’s no “right way” to process this: grief, anger, shame, doubt… they all matter.
Build a support network. Friends, family, a therapist, or even a peer group of others who’ve been laid off can help you feel less alone.
Create structure in your days. Without work to anchor you, routines (sleep, exercise, meals, job‐search blocks) go a long way.
Be gentle with yourself during the holidays. There’s no shame in scaling down expectations. Prioritize self-care over perfection.