One in three companies to make redundancies by the start of 2027

One in three employers are likely to make staff redundancies by the start of next year, new research suggests. A survey of 1,000 businesses by the conciliation service Acas found that larger ones are more likely to lay off staff than smaller firms. Acas director of dispute resolution Kevin Rowan said: “The results of our poll reveal that a third of businesses are considering redundancies by the start of next year. Organisations should look at all possible alternatives to redundancies first, but if employers conclude they have no choice, then they have legal requirements they must follow. “This means they must consult with staff early to seek their views, or risk being subject to a costly legal process.” According to the EY Item Club forecasts, approximately 250,000 more people are expected to lose their jobs, with the unemployment rate projected to peak at 5.8% by mid-2027 (up from around 5.2% in early 2026). This would push the total number of UK jobseekers over the 2.1 million mark. The British Chambers of Commerce (BCC) anticipates a softening labour market driven by sharp declines in job vacancies, predicting the unemployment rate will peak at 5.5% in 2027. Chief Financial Officers (CFOs) at major UK firms have reported their lowest confidence levels since the start of the COVID-19 pandemic. To survive a flatlining economy, major corporations are shifting heavily toward cost control, cash preservation, and freezing or reducing headcount. Geopolitical tensions have driven up wholesale energy costs, forcing businesses to route capital into overhead rather than payroll.