Elon Musk and his Department of Government Efficiency continue to make headlines as they cut the federal workforce in unconventional ways—from a return-to-office mandate to a recent series of emails prompting workers to detail their job accomplishments. Such moves have reportedly sowed significant fear among federal workers concerned about losing their jobs; however, layoff concerns are also spreading in the private sector, as employees worry that a range of new federal strategies will impact their job security.

In a survey of almost 1,200 U.S. workers by ResumeTemplates, about half of respondents said they are concerned the Trump administration’s policies will lead to layoffs at their organization. Of those reporting layoff anxieties, they tie them to:

• Trump’s tariff plans (60%)
• cuts to government contractors (55%)
• industry deregulation (42%)
• immigration changes (39%).

Layoff concerns are most common in accounting, education and information technology industries and least prevalent among workers in food and consumer products.

Layoff worries and productivity

Such fears are affecting the workplace: About a quarter of respondents report that the second Trump presidency has directly reduced their productivity at work, 9% of whom say the reduction has been “significant.” Such workers cite stress and anxiety about Trump’s policies for impacting productivity; 52% say layoff concerns and job instability are hampering their ability to do their jobs.

Julia Toothacre, career strategist and coach/owner of career coaching firm Ride the Tide Collective, Inc., says HR needs to be proactive in acknowledging and responding to building worries about layoffs within their workforce.

“Clear communication, honesty and empathy are the way to go when tensions are high,” she says.

If layoffs are planned, Toothacre says, HR should transparently communicate—about the reasons for such moves and possible timelines. If layoffs aren’t on the table, “reassure employees that they are safe.”

HR can also work with people managers to ensure they are responding effectively and empathetically to the concerns of their direct reports.

“You never know how layoffs in other sectors are impacting your people due to their relationships and connections,” she says.

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