This Week in HR News | May 9th, 2025 | Hiring Trends, Layoffs, and Workforce Shifts

Press Release from ShiftAgain

It’s been another fast- moving week in the world of work. From major layoffs and legislative action to flexible work trends and new upskilling programs, the HR landscape continues to evolve in real time. Whether you're navigating organizational change or planning for the future, this week’s top headlines offer fresh insights and actionable takeaways for HR professionals and business leaders alike.

1. CrowdStrike Announces 5% Workforce Cut

Major Findings: CrowdStrike will lay off 5% of its workforce, impacting around 500 employees.

Reasons/Context: The cybersecurity company is streamlining operations to drive business efficiency and leverage productivity gains from AI.

HR Implications: HR leaders in tech must prepare for rapid shifts in staffing needs driven by AI. It's critical to proactively manage communications, morale, and outplacement.

Source: https://www.wsj.com/business/crowdstrike-to-cut-5-of-workforce-8eda42ed

 

2. Unity Biotechnology Eliminates Entire Workforce

Major Findings: Unity Biotechnology is laying off its entire staff, including the CEO.

Reasons/Context: The move follows disappointing clinical trial results and financial challenges.

HR Implications: HR leaders in biotech and pharma must plan for worst-case scenarios in volatile funding environments, including succession planning and employee exit management.

Source: https://www.kron4.com/news/bay-area/south-san-francisco-biotech-company-lays-off-entire-workforce-including-ceo/

 

3. Federal Workforce Cuts Draw Bipartisan Response

Major Findings: Two congressional bills aim to counter sweeping federal workforce cuts.

Reasons/Context: The legislation responds to growing concern over the scale of workforce reductions across government agencies, especially under DOGE.

HR Implications: Federal HR teams must closely track legislative developments while preparing for rapid workforce transitions and offering career transition services.

Source: https://www.fedsmith.com/2025/05/05/combating-federal-workforce-reductions-congress-responds-with-two-new-bills/

 

4. DISA Turns to Automation as Civilian Workforce Shrinks

Major Findings: The Defense Information Systems Agency is implementing automation to offset personnel reductions.

Reasons/Context: As the civilian workforce declines, automation is being used to maintain mission-critical services.

HR Implications: Public-sector HR teams must prepare for upskilling and reskilling programs as automation displaces traditional roles.

Source: https://federalnewsnetwork.com/defense-main/2025/05/as-civilian-workforce-shrinks-disa-turns-to-automation/

 

5. Gen Z Embraces 'Micro-Shifts' for Flexibility

Major Findings: Gen Z workers are adopting shorter, part-time shifts, especially in food and hospitality sectors.

Reasons/Context: Flexibility, mental health, and work-life balance are major motivators behind this trend.

HR Implications: Employers must adapt scheduling, benefits, and retention strategies to accommodate shifting workforce preferences.

Source: https://www.forbes.com/sites/bryanrobinson/2025/05/03/micro-shifts-gen-z-sets-another-new-workforce-trend-in-2025/

 

6. AI Productivity Gains Prompt Layoffs

Major Findings: AI efficiencies are directly contributing to workforce reductions, notably at CrowdStrike.

Reasons/Context: While AI boosts output, it also renders certain positions redundant.

HR Implications: Leaders must balance productivity gains with ethical workforce management, including retraining, communication, and change leadership.

Source: https://www.investors.com/news/technology/crowdstrike-stock-job-cuts-artificial-intelligence/

 

7. April Jobs Report Shows Slowing but Resilient Labor Market

Major Findings: Hiring slowed in April, but job growth remained solid and unemployment stayed at 4.2%.

Reasons/Context: Market uncertainty, tariff effects, and employer caution are slowing hiring.

HR Implications: Employers should refine hiring strategies and focus on retaining top talent while navigating economic unpredictability.

Source: https://www.wsj.com/economy/jobs/jobs-report-april-2025-unemployment-economy-6ad2bdac

 

8. Harvard Launches Career Transition Program for Displaced Workers

Major Findings: Harvard is offering a low-cost career transition program through its Division of Continuing Education.

Reasons/Context: The initiative aims to support workers affected by widespread layoffs, especially in government and tech.

HR Implications: Corporate HR teams may partner with academic institutions to support laid-off employees with educational resources and re-skilling.

Source: https://finance.yahoo.com/news/harvard-announces-low-cost-career-152300159.html

 

9. Labor Department Recovers $1.4M in Wages

Major Findings: The DOL recovered over $1.4 million in back wages for more than 2,600 workers.

Reasons/Context: The enforcement action follows violations of federal labor standards by a San Jose employer.

HR Implications: Employers must rigorously audit wage practices and ensure compliance to avoid costly penalties and reputational damage.

Source: https://www.dol.gov/newsroom/releases/whd/whd20250506-0

 

10. Employers Concerned Over Immigration-Driven Labor Shortages

Major Findings: Employers are expressing concern that tighter immigration policies could exacerbate labor shortages in key sectors.

Reasons/Context: Industries like construction, agriculture, and healthcare rely heavily on immigrant labor, which is now at risk.

HR Implications: HR leaders should assess potential skill gaps and invest in training domestic talent or seek policy engagement opportunities.

Source: https://www.axios.com/2025/05/07/trump-immigration-policies-workforce-survey

 

By monitoring these developments, HR leaders will be well-positioned to respond thoughtfully and proactively, cultivating a resilient, engaged workforce in the face of constant change. Note: These summaries were compiled with the assistance of ChatGPT, an AI language model, for informational purposes only.

Companies Mentioned in this Press Release: