Outplacement biz sees big pick-up as companies look to soften layoff blows

Companies across sectors are increasingly reaching out to outplacement firms to help find new jobs for employees getting laid-off or retrenched.

Outplacement or career transition assistance providers such as Persolkelly Consulting, LHH, Right Management India, and ABC Consultants told ET they are seeing a 20-40% on-year increase in demand, from employers undertaking or planning organisational restructuring, downsizing, or workforce reduction. Randstad RiseSmart noted heightened interest across industries and markets, particularly from sectors undergoing digital and structural shifts.

In the last 2-3 weeks alone, ABC got as many as 10 enquiries from sectors such as social impact, shared services, food processing and pharma—largely triggered by global business shutdowns and restructuring. Most of these were US multinationals, the firm said.

Persolkelly faced nearly 40% on-year surge in inquiries in the March quarter, while it rose 20-25% at Right Management, a subsidiary of ManpowerGroup.

“Both multinationals and Indian companies are driving outplacement demand, influenced by economic restructuring, changes in business priorities, M&As, talent refresh initiatives, technological advancements, globalisation, economic cycles, interest rates, regulatory changes, and a growing focus on employee well-being,” said Viraj Kocharekar, country manager, LHH India, a provider of end-to end HR solutions.

Hardeep Singh, president - Right Management India, ManpowerGroup India said the recent uptick in inquiries is largely fuelled by ongoing organisational restructurings due to implementation of AI, macroeconomic conditions, and trade wars.

“The last major surge in demand was during the pandemic (2020–2021), when uncertainty, widespread layoffs, and business pivots created an urgent need for career transition support,” Singh said. “Many experts believe that the current trend is very similar to the sub-prime crisis of 2008.”

Archana Uniyal, regional head for Southeast Asia at Persolkelly Consulting noted that many companies are downsizing their workforces due to prevailing tough economic conditions while machines and technology are changing skills needed for jobs.

“The job market is tough right now, and many employees are worried about job losses. Companies understand that it can be hard for these employees to find new opportunities, so they see outplacement services as a helpful way to support them,” she said.

Agrees Shiv Agrawal, managing director at search and talent advisory firm ABC Consultants. “We don’t actively market our outplacement services, so the volume and urgency of these inquiries are notable. In fact, several clients have referred other organisations in their networks to us. The needs range from large-scale outplacement to smaller batches of around 10, and most come with a strong sense of urgency for support.”

ABC mostly focuses on outplacement for leadership roles, he said.

Demand across sectors for career transition services


Technology, banking and financial services, professional services, manufacturing, retail and consumer goods companies, startups, pharma and life sciences are among those reaching out for their employees, according to outplacement firms.

Besides helping impacted professionals land new opportunities, these firms help candidates with interview preparation, crafting resumes, personal coaching and brand-building, emotional support and resilience training, targeting prospective employers, among others.

The client company bears the cost of such services for retrenched staff, starting at Rs 30,000 to as much as 4 lakh per candidate, depending on factors like seniority, and tenure of engagement. Companies invest in these services for managing workforce transitions responsibly and protecting their long-term interests, which allows them to retain a strong employer brand, reduce legal risks and support employees.

“Outplacement services serve as the first line of defence for companies facing complications in trust and branding following necessary retrenchment and restructuring exercises,” said Jaya Dass, managing director at Randstad RiseSmart & Randstad Sourceright, Asia Pacific. “By providing support and guidance to departing employees, these services help to protect the employer's brand reputation and minimise potential legal risks associated with layoffs.”