From Layoffs to

Talent Redeployment
Rethinking Workforce Strategy in
Economic Uncertainty
Contents

Executive summary ................................................................................................................................... 01

Layoffs and Redeployment ..................................................................................................................... 02

The Problem ............................................................................................................................................... 04

Solution ....................................................................................................................................................... 06

Reinventing with a Human Focus .......................................................................................................... 08

AI That Works for People—Not the Other Way Around ...................................................................... 10

Help Your People Grow with Future-Ready Skills ................................................................................ 12

Success stories ..........................................................................................................................................14

Conclusion ...................................................................................................................................................16
Executive summary

In the last year alone, over 150,000 tech employees lost their jobs—many of whom could have been
redeployed instead.

Economic uncertainty is forcing organizations to reevaluate their workforce strategies.

While layoffs have historically been the default cost-cutting measure, they come with severe financial and
cultural consequences. Forward-thinking companies are shifting towards talent redeployment solutions,
internal mobility, and employee reskilling services. It’s a more effective and sustainable alternative.

Redeployment allows businesses to retain valuable employees, minimize disruptions, and build a more agile
workforce prepared for future challenges. Pathways to internal mobility might include a formal internal career
program or a candid conversation with HR.

This whitepaper explores the hidden costs and drawbacks of layoffs, the limitations of traditional workforce
planning, and the benefits of adopting a data-driven redeployment strategy. We explore real-world case
studies, highlight key technologies facilitating redeployment, and provide actionable insights for companies
looking to optimize their workforce strategies in the face of economic challenges.

01
Layoffs and Redeployment
A layoff is the termination of employment due to financial constraints, restructuring, or shifts in market demand.
In some cases, layoffs are temporary, allowing employees to return when business conditions improve. However,
mass layoffs—where a significant number of employees are let go within a short period—have become
increasingly common due to automation, outsourcing, and economic downturns.

While layoffs may offer a quick way to cut costs, they have far-reaching consequences, including:

02
 Loss of experienced talent and institutional knowledge.

Decreased employee morale and engagement.

Damage to employer brand and recruitment efforts.

High rehiring and training costs when market conditions improve.

Redeployment, on the other hand, focuses on reassigning employees to new roles within the organization rather
than terminating them. This can involve:

Moving employees to departments experiencing growth or higher demand.

Reskilling or upskilling employees to fit emerging business needs.

Implementing internal mobility programs to align workforce capabilities with strategic goals.

Studies indicate that organizations with robust internal mobility programs see a 41%
increase in employee tenure and a 64% higher retention rate after three years.

03
The Problem
The scale of layoffs in recent years has been staggering.

In 2024, the technology sector experienced significant workforce reductions, with over 150,000 employees laid
off across 542 companies.

This trend continued into 2025, with 190 companies announcing mass layoffs by January 21.

04
Layoffs often result in substantial hidden costs that can sometimes surpass the savings generated from job
cuts, including:

Severance and unemployment benefits: Companies Rehiring costs: Once business conditions improve,
may pay employees several months' worth of companies must spend on recruitment, onboarding,
severance alongside unemployment insurance and and training—often at a cost of 200% of the
benefits, increasing the financial burden. employee’s salary.

Productivity losses: Remaining employees Reputation damage: Mass layoffs can tarnish an
experience lower morale, leading to decreased employer’s brand, making it harder to attract top
engagement and efficiency. talent in the future.

Beyond the immediate financial implications, layoffs have profound effects on employee well-being;

are less likely to trust

81% of those affected report
experiencing symptoms of depression
60% future employers.

These statistics underscore the pressing need for alternative workforce strategies that prioritize both
organizational efficiency and employee welfare.

05
Solution

Talent redeployment is a cost-effective and strategic alternative to layoffs.

It allows businesses to reposition skilled employees into roles that align with evolving business needs. For every
employee who chooses to accept an open role on another team at their company rather than leave entirely, the
organization avoids spending significantly more on a new, untried candidate.

06
Companies that invest in proactive workforce planning, skill mapping, and AI-driven talent analytics can
transition employees into new roles seamlessly, ensuring business continuity.

If workplace culture is the foundation of business success, then talent redeployment is a building block of a
strong culture. Organizations that excel at it can retain employees nearly twice as long as those that don't.

A 2019 Deloitte report highlighted a company that saw nearly a 30% boost in employee engagement after
launching an internal career program designed to help employees develop new skills and explore alternative roles.

Beyond skills development, transparency and communication are essential in fostering a culture of adaptability.
Employees are more likely to embrace internal mobility when they see it as a career growth opportunity rather
than a temporary fix. Businesses that successfully implement redeployment strategies focus on structured career
pathways, clear job transitions, and leadership buy-in.

Redeployment involves identifying employees whose roles are at risk and repositioning them within the company
through:

Proactive workforce planning: Mapping out future skill Reskilling and upskilling programs: Investing in
requirements and aligning employees accordingly. employee development to fill internal skill gaps

AI-driven talent analytics: Leveraging technology to

assess employee skills and match them with suitable
roles.

07
Reinventing with a Human Focus
However, from an employee’s perspective, redeployment is often perceived as a challenge rather than an
opportunity.

People naturally resist change, and involuntary shifts in their roles can be particularly unsettling. But with
thoughtful management and clear communication, organizations can reframe redeployment in a positive light,
creating new career paths that employees might not have otherwise considered.

08
In the past, redeployment frequently resulted in mass layoffs, where employees were dismissed without
strategic planning or support—beyond calculating severance costs.
The early 2000s saw a wave of such redundancies, particularly in the tech sector, as companies collapsed and
stock markets declined, forcing even highly skilled and experienced employees to leave with little more than a
severance package.

Despite the common assertion that "employees are a company's greatest asset," the reality of redeployment
often tells a different story. Affected employees typically include a mix of top performers, average contributors,
and underperformers. Yet, most companies make retention decisions based on factors like domain expertise,
tenure, and salary, rather than proactively planning for future skill requirements. decisions based on factors like
domain expertise, tenure, and salary, rather than proactively planning for future skill requirements.

To truly support a sustainable workforce, organizations

must take a forward-looking approach, ensuring that
redeployment aligns with both current business needs
and emerging industry demands.

09
AI That Works for People—Not
the Other Way Around
The financial cost of layoffs is a significant concern. In contrast, companies that prioritize redeployment
strategies experience substantial benefits.

AI-driven workforce analytics have proven instrumental in reducing the time required to fill internal positions by
up to 50%, allowing organizations to maintain productivity and stability (Gartner, 2024).

10
Moreover, technology is transforming workforce redeployment by enabling intelligent, data-driven talent
decisions that enhance agility and resilience. AI-powered talent marketplaces, predictive workforce analytics,
and advanced HR platforms allow organizations to identify skill gaps, match employees with suitable roles, and
streamline internal mobility. By integrating these technologies, companies can proactively address workforce
challenges while reducing the costs and disruptions associated with layoffs.

Additionally, the World Economic Forum (2024) projects that 44% of workers will need to update their skills
within the next five years due to automation and digital transformation, emphasizing the need for continuous
workforce adaptation.

AI-driven platforms like LinkedIn Talent Insights use machine learning to analyze workforce trends, assess
employee skills, and predict future job fit. These tools enable organizations to identify employees who can be
upskilled or redeployed, ensuring that talent is utilized effectively rather than lost through layoffs.

By leveraging these advanced technologies, organizations can move beyond reactive layoffs and create a
future-ready workforce. AI-driven redeployment strategies not only protect business continuity but also foster a
culture of growth, adaptability, and long-term talent retention.

Recognizing this shift, a 2023 study by Aptitude Research and Workday found that over 70% of companies are
increasing their investment in talent mobility.

These statistics collectively underscore the importance of redeployment as a strategic imperative, enabling
organizations to build a successful workforce while mitigating the downsides of layoffs.

11
Help Your People Grow with
Future-Ready Skills

As industries evolve, the demand for new skills also arise, making continuous learning and upskilling essential for
workforce sustainability. The modern workforce requires a blend of technical and soft skills to remain
competitive.

Key emerging skills include:

12
 Digital Literacy – As digital tools Cybersecurity – As cyber threats
and platforms become ubiquitous, escalate, businesses must equip
employees must adapt to new their workforce with cybersecurity
technologies to stay productive. awareness and protection strategies.

Data Analytics – With data-driven Cloud Computing – The shift to

decision-making at the core of cloud-based infrastructure has created
business strategies, employees skilled a demand for professionals with
in data interpretation and visualization expertise in cloud architecture, security,
provide valuable insights. and deployment.

Additionally, advancements in online education have made it easier for employees to access personalized
learning experiences. As they provide flexible, role-based learning pathways that align employee development
with business objectives.

These platforms enable companies to:

Offer customized learning experiences tailored to job roles and career progression.
Use AI-driven recommendations to suggest relevant courses based on skill gaps.
Track employee progress through data analytics and certifications.

Organizations that integrate these learning tools into their workforce development strategy not only
future-proof their employees but also foster a culture of continuous learning and adaptability. By prioritizing
skills development, businesses can bridge expertise gaps, enhance internal mobility, and build a
high-performing, future-ready workforce capable of navigating industry shifts.

13
Success Stories

Success Stories
Several companies have successfully adopted redeployment as an alternative to layoffs:

14
Verizon:
Implemented an AI-driven talent marketplace, redeploying 20,000 employees into new roles and significantly
reducing rehiring costs. Verizon said it spent nearly $216 million last year on learning and development
programs for its employees.

PwC:
PwC has integrated generative AI into its internal talent marketplace to enhance talent management. They did
so by using new technologies that signpost what internal job opportunities are available and relevant to their
employees. This enables them to match which workers would best suit certain roles based on their skill sets
and career paths. Facilitating more efficient redeployment and upskilling within the organization.

Amazon:
A recent example of successful talent redeployment comes from Amazon, which strategically reassigned
employees from underperforming teams, such as those working on its voice assistant, Alexa. This approach
not only optimized costs but also strengthened higher-performing departments, aligning workforce allocation
with business priorities.

Amazon implemented redeployment in two key ways: 1)Some employees were given advance notice and
encouraged to seek roles in other business units within the company. 2)Others were directly reassigned to
teams that were already delivering strong ROI.

Several factors influenced this decision, including slowing economic and business growth, limited consumer
engagement with Alexa’s capabilities, and a shift in focus toward high-demand products and divisions that
offered greater returns.

15
Conclusion

Traditional approaches to managing talent are no longer sufficient. Layoffs may offer immediate cost savings,
but they lead to long-term challenges.

On the other hand, talent redeployment provides a strategic, cost-effective alternative that ensures business
continuity, preserves human capital, and strengthens workforce resilience.

Organizations that embrace redeployment can optimize costs, enhance workforce agility, and ensure
long-term stability. Investing in internal mobility, reskilling programs, and AI-driven workforce planning helps
businesses proactively address skill gaps and retain valuable employees. Beyond operational benefits,
redeployment strengthens an organization's employer brand, making it an attractive workplace for top talent.
Employees who see clear career pathways and growth opportunities are more likely to stay engaged and
contribute to innovation. By fostering a culture of adaptability and professional development, companies can
build a future-ready workforce capable of navigating economic uncertainty.

The Time to Act Is Now

Businesses that wait for economic downturns to force workforce decisions risk losing their best talent. The
shift from layoffs to talent redeployment is no longer optional—it is essential for sustainable growth and
resilience.

16
 About Exela HR
Exela HR Solutions (EHRS) is a trusted partner in end-to-end HR transformation, offering cutting-edge
solutions tailored to modern workforce challenges. Specializing in workforce optimization, talent
redeployment, and reskilling strategies, EHRS empowers organizations to build resilient, future-ready teams
that drive business success.

With a strong foundation in AI-driven HR technology, data-driven insights, and industry expertise, we help
businesses reduce hiring costs, improve retention, and enhance workforce agility. Our comprehensive
services span recruitment process outsourcing (RPO), global payroll processing, compensation and benefits
management, HR compliance, and learning & development programs.

By leveraging innovative HR strategies, EHRS enables companies to navigate economic uncertainty, retain top
talent, and foster a culture of continuous growth. Whether you’re looking to streamline HR operations,
implement internal mobility programs, or adopt AI-powered workforce analytics, EHRS provides the expertise
and tools to transform your HR strategy and drive long-term success.

Get in touch with us today!

Shaun Rao
Author Details Vice President, Talent
Acquisition and HR

ehrs.exelatech.com +1 (214) 612-6963 hrsolutions@exelatech.com