Trump's new policies are raising layoff concerns. Here's how benefits leaders can prepare

Workplace-related policies brought forth by the new administration have raised a lot of concerns among employees, the latest of which is whether organizations will be slashing their headcount. 

Many employees feel the Trump administration's actions have had negative impacts on their workplace, according to a survey conducted by resume building and insights platform Resume Templates in February. Along with concerns about increased tension and a less inclusive environment, half of employees are worried that the Trump administration's policies will lead to layoffs at their company. 

"Over the last couple of years, employees have dealt with many rounds of layoffs across other industries," says Julia Toothacre, career coach and strategist at Resume Templates. "We don't want employees to feel unsafe at work, or like they're going to lose their job, but to see what's happening on the government side, that has really shaken people up." 

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As for how their own workplace might be impacted, 59% of employees said tariffs and trade policies were the biggest cause for concern, 55% cited cuts to government contracts, 42% pointed to deregulation of industries and 39% said changes in immigration policies. And for their part, the Trump administration has done very little to dissuade that sentiment. On the contrary, in a recent memo, the administration ordered federal agency leaders to submit plans for further reducing their workforces by March 13.

"[Trump is] cutting across the board," Toothacre says. "In response, companies in other industries are anticipating that these policies are going to impact them negatively, too. So a lot of them are making plans and starting to do their own layoffs to make sure they're not hit too badly." 

Many large companies, such as Walgreens, FedEx and John Deere, have already announced layoffs that are to take place this month.

But as employers make moves to protect themselves, they also need to be doing all they can to not hurt their business by alienating their workforce, Toothacre says. Whether they plan to conduct layoffs or not, the more they can keep employees informed, the better. 

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"Employees are stressed because they don't know what's happening," she says. "In addition to the other things happening in the corporate space, like RTO mandates, it creates this level of stress that people are bringing into the workplace that's going to then impact productivity." 

The reality is that under the current administration, organizations may not be able to avoid layoffs, but that doesn't mean they can't still support their affected employees. Employers should plan ahead by developing a clear communication strategy and be as transparent as possible throughout this process, advises Toothacre. HR leaders, specifically, can lead the charge by making sure to handle employees' concerns with empathy, having continued health coverage information ready and evaluating their company's current severance package to look for any possible updates or additions.  

"Companies that can plan and offer employees something to assist them with the transition will be the most helpful," Toothacre says. "The circumstances aren't all that great, but providing these services is an underrated solution that can help employees get from point A to point B."