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The axe of retrenchment

Addressing the psychological cost of layoffs when it cuts more ways than one

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    • For the retrenched, a layoff is more than a loss of income. It is a rupture in identity, security and purpose.
    • For the retrenched, a layoff is more than a loss of income. It is a rupture in identity, security and purpose. ILLUSTRATION: PIXABAY

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Jeffery Tan

    Published Wed, Sep 24, 2025 · 07:00 AM

    RETRENCHMENT. Layoffs. Downsizing. Rightsizing.

    The language varies, but the outcome is consistently brutal: the termination of employment for strategic, not performance-related reasons. While boards and management focus on operational efficiency and financial optimisation, the human toll of restructuring constitutes a profound and frequently ignored crisis – one carrying significant long-term costs for individuals, organisations and economies alike.

    Retrenchment is a double-edged sword, inflicting deep psychological wounds on those receiving the news and those tasked with delivering it.

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    LayoffsleadershipMental health

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