Why So Many Companies Are Firing Gen-Z Employees

The eldest of the generation born between 1997 and 2012 are landing and losing their first jobs out of college—but it’s not because of work ethic.

The entrance of Gen-Z into the workforce has been anything but smooth. Despite their tech-savviness and fresh perspectives, approximately 60% of companies have already laid off Gen-Z employees they hired this year, according to a recent survey by education and career advisory platform, Intelligent. Of the 966 businesses surveyed, 75% reported that their young workers had “unsatisfactory” performance. The main complaints? A lack of motivation (50%), professionalism (46%), and poor communication skills (39%).

This paints a troubling picture of how companies are perceiving the youngest generation in the workforce. However, like the Millennials before them, Gen-Z may just be experiencing inevitable growing pains that come with entering a new world.

1. The Disconnect: Differing Work Expectations

One of the core reasons for the layoffs stems from a disconnect between workplace expectations and Gen-Z’s understanding of professional environments. Many employers claim that Gen-Z employees lack motivation and professionalism. However, the issue may not be a lack of ambition but differing values surrounding work-life balance and communication styles.

For example, Gen-Z employees like Tenley Uttenreuther, who was laid off after working full-time at Afterpay, believe that their generation is often misrepresented. Despite their commitment and hard work, they often receive feedback that they aren't meeting traditional expectations. Uttenreuther, who worked long hours and took pride in her work, argues that Gen-Z's communication preferences—favoring direct, honest feedback over vague praise—may clash with older management styles.

2. Growing Pains and Changing Work Culture

Just as Millennials were once criticized for their perceived lack of work ethic, Gen-Z is now facing similar scrutiny. It’s important to note that previous generations faced comparable challenges when they first entered the workforce. Millennials, now in managerial roles and leading successful companies, were once seen as unmotivated and overly focused on personal fulfillment. Over time, they adjusted, adapted, and redefined workplace norms.

Gen-Z is on a similar journey. Their upbringing in an era of constant connectivity and social media has shaped their work preferences, often prioritizing work-life balance and social impact over traditional corporate rewards. Many employers may find it difficult to adapt to these changes, leading to friction and the layoffs we’re seeing today.

3. The Role of Social Media and Unrealistic Expectations

Social media has influenced many Gen-Z workers' expectations of work-life balance and career success. Influencers showcasing luxurious lifestyles have led some Gen-Zers to believe that similar rewards can be attained with minimal effort. This creates a disconnect when they enter industries where long hours, skill-building, and dedication are essential for advancement.

As 24-year-old software engineer Carter Abdallah points out, while some of his peers seek work-life balance right from the start, they fail to recognize that building a career takes time, effort, and sometimes sacrifice. Abdallah himself works more than 40 hours a week and believes that standing out in a competitive job market requires going above and beyond the basic job requirements.

4. The Importance of Soft Skills in the Modern Workplace

One major hurdle Gen-Z faces is a lack of soft skills, such as communication, teamwork, and problem-solving, which are essential in any professional environment. Grace McCarrick, founder of Grace Note Strategies, notes that Gen-Zers, who were raised in a highly structured and supervised environment, often expect the same level of guidance from their employers. This expectation can frustrate managers and create tension in the workplace.

Moreover, the pandemic has exacerbated this issue. With remote learning and social isolation, Gen-Z had fewer opportunities to develop these critical interpersonal skills. As a result, companies are now bearing the burden of training young workers on basic professional behaviors that previous generations acquired naturally through face-to-face interactions.

5. Adapting to the New Reality

Despite these challenges, Gen-Z brings a wealth of potential to the workplace. They are digital natives, innovative thinkers, and deeply committed to causes like social justice, diversity, and environmental sustainability. However, their success in the workplace hinges on their ability to adapt to existing structures while also driving change.

Employers, too, must meet Gen-Z halfway by providing the training, mentorship, and psychological safety that will help them thrive. With soft skill workshops and clearer communication of expectations, organizations can tap into the vast potential this generation offers.

Conclusion: The Future of Gen-Z in the Workplace

While the current wave of Gen-Z layoffs is concerning, it is important to remember that every generation faces challenges when entering the workforce. Gen-Z will eventually find their footing, just as Millennials did, and will likely reshape the future of work in ways we have yet to fully grasp.

To bridge the gap, companies should focus on fostering environments that encourage open communication, provide mentorship, and offer growth opportunities for young workers. At the same time, Gen-Z must be willing to adapt to the existing workplace culture, develop their soft skills, and work hard to prove their value.

The transition is inevitable, and as Gen-Z continues to gain experience and build their careers, they will likely emerge as the next leaders in business, driving forward a new era of work that balances innovation with inclusivity.

Keywords: Gen-Z layoffs, workplace challenges, Gen-Z work ethic, soft skills, generational differences, communication styles, work-life balance, professional development, adapting to the workplace, young employees.