How Is the Need for Outplacement Growing in Tech?
Increasing layoffs, longer periods of unemployment and skills gaps are causing tech employees to face more uncertainty in the job market.
Technology has long driven cycles of workplace change. Two decades in the digital space have shown me this firsthand. What’s different today is the sheer speed of those transitions.
Between 2025 and 2030, 22% of jobs will be affected by structural changes in the workforce. – World Economic Forum Future of Jobs report
Layoffs in the tech and IT sector are increasing, as a direct or indirect result of AI.
According to a recent Goldman Sachs report,
"Workers displaced from technology-disrupted occupations face more difficult short-run transitions back into employment" – Strategist Pierfrancesco Mei
The article explained that workers displaced by tech disruption take longer to secure new roles and earn about 3% less upon re-employment.
In a climate of doubt and uncertainty, outplacement services become even more valuable.
A case in point: we’ve seen some recent high-profile layoffs in the tech industry that have been leaked before management was ready to disclose. These types of leaks can cause widespread damage to morale and untold damage to the company’s reputation.
As our senior vice president Patrick McCue commented in HR Brew:
“Advance indicators of layoffs without specifics create their own damage. That tension alone drives anxiety up.”
Sometimes it’s impossible to know when a rumor may surface, but addressing it honestly and as specifically as possible will help reduce tension. It is important to have your communication and outplacement plan prepared well ahead of time.
How Does Outplacement Influence Morale?
Outplacement influences morale because employees closely observe how others are treated during times of change.
Outplacement is often positioned as a benefit for employees who are exiting. In practice, it’s more than that. It reflects how an organization treats its people when it matters most.
During restructurings or layoffs, companies tend to focus on operational, legal and financial considerations. For employees, the experience is fundamentally human. In these moments of uncertainty, people form lasting perceptions of leadership, culture and trust.
When thoughtfully designed and delivered, outplacement supports individuals in transition while also influencing morale, helping preserve trust and reinforcing organizational values across the workforce.
People who are exiting are dealing with uncertainty around their:
- Careers
- Finances
- Professional identity
At the same time, those who remain often experience what is commonly called survivor syndrome, including:
- Anxiety
- Guilt
- Reduced trust
“Surviving” employees are paying attention. They notice how their colleagues are supported and draw conclusions about what that means for them.
When former colleagues are supported through coaching, practical guidance and opportunities to move forward, it sends a clear message. People matter here, even in difficult moments.
That visibility matters.
If the support is unclear, people may assume it is limited. When it is clear and credible, it becomes a visible expression of intent.
This helps preserve trust at a time when trust is most fragile. It reinforces the idea that the organization values people, not just roles. This directly influences engagement, confidence and morale.
Career Transitions Are Becoming More Complex. Outplacement Needs to Evolve With Them
Outplacement today needs to do more than help someone find their next job; it needs to help individuals understand where they fit in a changing market, identify their transferable skills and build confidence again.
It also needs to reflect how people find their next opportunities. This includes digital tools, networking and, increasingly, how to navigate AI in the job search process.
For many people, this is not just about the next role. It is about rethinking their direction. This shift makes ongoing, relevant support more important over time, not just at the start.
The First Experience Sets the Tone
As affected employees are likely to be going through multiple emotions upon hearing the difficult news, it’s important that messaging about next steps is delivered in a clear, calm, intentional manner.
Whether the news is delivered through a conversation, an email or a platform, the individual on the receiving end is processing uncertainty and is not ready to absorb everything. One of the most overlooked success factors is simple. People need to understand what is being offered and feel encouraged to use it. Without clear communication and guidance, even strong support can go unused.
The clarity of language, the ease of access, and the presence of human support all influence whether someone engages. Often, the first thing someone needs is reassurance: You will be okay. We will help you navigate what comes next. After that, they need direction and consistent support.
Understanding is only the start. Engagement needs to continue over time. What someone needs in the first few days is different from what they need a few weeks later. Without structure and a sense of progression, people can disengage even when support is available.
These early and ongoing experiences shape individual outcomes, and they influence how the organization is seen.
Why Does Outplacement Need to Be Individualized?
Effective outplacement needs to reflect that people experience transitions in very different ways.
Core UX principles recognize that individuals have different needs, goals and contexts.
This needs to be reflected in how support is delivered, through personalized coaching and tailored ways to engage depending on where someone is in their journey. The goal is not to move everyone through the same process, but to meet them where they are and help them move forward.
Technology has expanded what is possible. Platforms can provide access to tools, learning and market insight at scale. But access alone is not enough. As AI becomes more visible in hiring and career development, many individuals are uncertain about how to use these tools. They need human guidance to help them understand what is relevant and how to apply it.
The most effective outplacement brings these elements together.
Outplacement and Resilience
At its best, outplacement should be an integral part of how an organization manages change and strengthens connections with all employees.
AI and tech disruption are reshaping the workforce. Careers are becoming more fluid. People move between roles, industries and companies more often. How those transitions are handled has a lasting impact.
Outplacement plays a central role in building workforce resilience:
- Helps individuals move forward with clarity and confidence
- Reassures remaining employees that people are valued
- Enables leaders to execute change without losing engagement
In an era of disruption, how organizations support transition matters as much as how they plan it.
Making Outplacement a Human Experience
Organizations that invest in well-designed outplacement are more likely to:
- Maintain relationships with former employees
- Protect their employer brand
- Boost employee morale
- Sustain trust during periods of change.
Designing this experience well is what shapes how the organization is experienced and remembered, especially when workers are displaced due to tech advancements.
