5 ways work affected mental health in 2025

"Nearly all corporate workers face mental health challenges at work. And in 2025, unprecedented, lightning-fast developments in AI, unending widespread layoffs and broader political turmoil roiled workers' emotional well-being. Many workers have been left burned out, anxious, and filled with dread. But it's not all bad-in some corners of the workforce, each seismic disruption this year brought with it discourse around the problem, as well as some leaders and workers staying committed to safeguarding mental health in the face of constant change."

"These seemingly unending, so-called "forever layoffs" have wrecked workers' mental health: losing work is one of the most traumatic experiences someone can experience, and can even lead to physical illness. More than a third of leaders say they feel mentally unprepared to deal with leadership responsibilities in this environment. Plus, living amid constant uncertainty is bad for efficiency (and a company's bottom line) as it struggles to survive."

"Perhaps the dominant headline in 2025 when it comes to the workforce was the story of layoffs. As we close out the year, over 1.1 million Americans have lost their jobs, though the actual number could be even much higher. The government and tech sectors were especially hit hard-particularly by cuts from Elon Musk's Department of Government Efficiency (DOGE) and redundancies that ( may or may not) be due to AI, respectively."

Nearly all corporate workers face mental health challenges at work. In 2025, rapid AI developments, widespread layoffs, and political turmoil significantly worsened workers' emotional well‑being. Over 1.1 million Americans lost jobs, with government and tech sectors especially hard hit, contributing to burnout, dread, and physical health risks. Many leaders report feeling mentally unprepared to lead under such uncertainty, undermining efficiency and company performance. Some workplaces and leaders responded by discussing mental-health safeguards and committing to supportive practices. Firms need to handle layoffs compassionately, bolster team morale, and create environments conducive to good mental health going into 2026.

Read at Fast Company