Large organisations more than twice as likely as SMEs to be preparing for job cuts, amid rising costs and upcoming legal changes
5 June 2026
Employers are increasingly considering workforce reductions as rising costs and economic pressures continue to weigh on businesses, a poll of 1,011 senior decision makers in the UK revealed.
A third (33 per cent) of organisations are likely to make redundancies between February 2026 and January 2027, according to a survey commissioned by public body Acas.
The conciliation service found that large employers are more than twice as likely as SMEs to be planning job cuts, with 46 per cent expecting to make redundancies, compared with 21 per cent of smaller firms.
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Kevin Rowan, director of dispute resolution at Acas, urged organisations to look at “all possible alternatives” before making redundancy decisions.
“This means they must consult with staff early to seek their views, or risk being subject to a costly legal process.”
The findings come as the government moves to strengthen redundancy rules. Under current law, employers proposing 20 or more redundancies at a single workplace within 90 days must consult trade unions or employee representatives.
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