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UK businesses have seen a notable rise in mass dismissal programmes, surging by five percent over the past year. This trend aligns with ongoing corporate restructuring in anticipation of the forthcoming Employment Rights Bill and the expanding implementation of AI technologies.
Data from TWM Solicitors reveals that mass dismissal programmes have increased from 3,456 to 3,715 between 2024 and 2025, equating to approximately 267,800 proposed job losses. The most significant uptick was observed in the public administration, health, and education sectors, which experienced a 19 percent rise in dismissal proposals. Meanwhile, the manufacturing sector experienced a 12 percent increase, amounting to 630 programmes over the year.
The Employment Rights Bill remains stalled in Parliament, primarily due to disagreements between the House of Commons and the House of Lords over 'day one' employment rights. The Lords advocate for a six-month waiting period for eligibility, complicating the bill's passage.
Anthony Wilcox, a partner at TWM Solicitors, noted the complexities anticipated with the new legislation. He stressed the potential for increased management costs and the substantial risks associated with mismanaging redundancy or contract changes under the new law. Employers, he suggests, are logically preempting these legal shifts by proceeding with intended redundancy programmes.
The backdrop of this increase in mass dismissals is the accelerated integration of AI systems within organisations. Sheila Flavell CBE, COO of FDM Group, remarked on the transformative pressure AI is placing on workforce skill requirements. Currently, 54 percent of organisations foresee AI skills as crucial for early-career roles, but only 6 percent of teams possess high AI proficiency.
Flavell underscored the necessity to bridge this skills gap by emphasising the value AI brings in amplifying human expertise rather than replacing it. By incorporating strategic AI training into professional development, companies can enable employees to effectively engage, evaluate, and collaborate with AI tools, avoiding undue reliance on technology.
