A new study has revealed the deep cultural impact of layoffs, reporting an alarming 216 per cent drop in employee Net Promoter Score (eNPS)—from 2.78 to -3.23. It draws attention to the fact that workforce reductions, when handled without empathy and transparency, can severely damage trust, morale, and long-term employee engagement within organisations.
eNPS is a key indicator of how likely employees are to recommend their workplace to others. This score helps measure employee satisfaction and emotional commitment. A negative score signals a worrying shift—from dissatisfaction to outright disengagement.
The report by CultureMonkey, an AI-powered employee- engagement platform, draws insights from over 150 companies across regions including the US, India, Europe, and Southeast Asia. Discussions with 300+ HR and business leaders, along with data from 50+ experts, highlight a strong correlation between poor layoff communication and collapsing workplace culture.
The damage is rather deep rooted. Survey participation rates fell by 16 per cent, while employee advocacy dropped 18.64 per cent. These changes suggest a breakdown in psychological safety, with many employees feeling uncertain, unheard, or disconnected from leadership.
The report highlights the urgent need for leaders to move beyond traditional engagement tactics. Real-time feedback mechanisms, empathetic leadership, and inclusive communication are no longer optional—they’re essential for retaining talent and rebuilding deteriorating cultures.
In today’s evolving workplace, the way organisations respond to disruption determines not just short-term stability, but long-term success. When employees feel respected and heard—even during crises or tough times—they’re more likely to stay on, grow, and advocate for the brand.
