How Layoffs Affect Those Who Stay: The Hidden Consequences

View profile for Ric Davidson

Distribution Leader with 20+ years in warehouse management, facility expansions, and executing ERP/WMS solutions for effective cost and budget control.

What Happens After a Layoff Isn’t Just About Those Who Leave When we talk about layoffs, most of the focus is on the people who lose their jobs. And that’s important — those transitions can be devastating. But there’s another side we don’t talk about enough: the people who remain. They’re asked to pick up more responsibilities with fewer resources. They wonder if they’ll be next. They often lose trust in leadership and morale can sink. The truth is, layoffs don’t just cut costs — they cut confidence. And when fear replaces trust, everyone suffers: employees, customers, and even the company’s long-term performance. Non-competes only make this worse. They don’t just trap those laid off — they create fear for those still working, who feel stuck and powerless. That’s why the FTC is asking for stories until November 3. If you’ve experienced the impact of non-competes — whether you were laid off or left behind — your voice matters. Submitting a comment is one way to help create change.

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