Survivor Syndrome: The Overlooked Risk in Workforce Restructuring

By Cynthia Iorio, CEO – Monarque Solutions

The Hidden Cost of Workforce Reductions

Across North America, many sectors are facing significant workforce reductions as they adapt to economic uncertainty, automation, and changing consumer demand.

Consider these recent and projected examples:

• Global banks are expected to cut up to 200,000 jobs over the next 3–5 years, largely in back-office and customer service roles as automation accelerates (Financial Times).

• Procter & Gamble announced plans to lay off 7,000 employees—around 6% of its global workforce—as part of a strategic reorganization (Bloomberg).

• The transportation sector has seen significant job losses tied to reduced consumer spending and supply chain disruptions (U.S. Bureau of Labor Statistics).

• Marriott International plans to cut over 800 corporate-level jobs to reduce costs in response to decreased leisure travel demand (Reuters).

• The IT sector saw unemployment rise from 3.9% in December to 5.7% in January, with over 152,000 IT workers unemployed, reflecting the impact of automation and AI adoption (CompTIA, U.S. Department of Labor).

  
  

These layoffs and restructurings may help stabilize balance sheets in the short term.

But what happens to the people who don’t lose their jobs—but are left behind?

Understanding “Survivor Syndrome”

“Survivor syndrome” is the emotional and organizational fallout experienced by employees who remain after layoffs.

They’re often described as the “lucky ones” for keeping their jobs. But research and real-world experience show they’re at significant risk of disengagement, burnout, and turnover themselves.

Here’s what companies typically see in the aftermath:

✅ Increased workload and stress

Remaining staff absorb the responsibilities of laid-off colleagues, often with no additional resources or training. Over time, this creates chronic overload and burnout.

✅ Emotional and psychological strain

Feelings of guilt, anxiety, and fear for their own job security are common. Trust in leadership may erode, morale declines, and social cohesion weakens.

✅ Damaged workplace culture

Layoffs can shatter psychological safety. Teams may become fragmented, communication can suffer, and skepticism about leadership’s intentions grows—especially if transparency is lacking.

Why Employers Can’t Ignore It

Leaders may focus heavily on restructuring plans, severance budgets, and investor messaging. But failing to plan for survivor syndrome can turn cost-saving layoffs into long-term talent risks.

🔻 Declining engagement and productivity

Survivors often “quiet quit,” doing the minimum while looking elsewhere.

🔻 Higher voluntary turnover

Disillusioned employees take their institutional knowledge to competitors.

🔻 Damaged employer brand

Layoffs can harm reputation, making recruitment harder and more costly in the future.

What Employers Can Do About It

Survivor syndrome isn’t inevitable. Organizations can proactively mitigate its effects and protect both people and performance.

✅ Communicate openly and compassionately

Be transparent about the reasons for layoffs and the company’s future direction.

Invite questions and acknowledge the human impact.

✅ Support employee well-being

Offer mental health resources, regular check-ins, and realistic workload assessments. Normalize asking for help and model empathy at all leadership levels.

✅ Rebuild trust and engagement

Recognize and celebrate contributions.

Offer career development opportunities to signal investment in remaining staff.

Foster a culture of resilience, collaboration, and shared purpose. How Monarque Solutions Can Help

At Monarque Solutions, we help leaders move beyond surface-level check-ins to truly understand their employees’ needs—including the outside-work caregiving responsibilities that often go unspoken.

We work with organizations to:

✅ Equip managers to have real, empathetic conversations

✅ Build well-being supports that account for caregiving demands

✅ Strengthen trust, engagement, and retention during transitions

Because how you support those who stay defines your culture—and your success.