Why Some Companies Want To Fire Millennials And Keep Their Gen Z Replacements

Why Some Companies Want To Fire Millennials And Keep Their Gen Z Replacements


September 30, 2025 | Marlon Wright

Why Some Companies Want To Fire Millennials And Keep Their Gen Z Replacements


Millennials Are The First To Lose Jobs Due To These Reasons

Millennials entered the workforce as the most educated generation in history, yet they are increasingly the first to face layoffs. Employers argue that their costs and adaptability play a role. Are they right? 

Employers Keep Targeting Millennials During Widespread Layoffs, According To These Misconceptions

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They Are Viewed As Costly Compared To Gen Z

Managers frequently point out that Gen Y employees occupy mid-level positions with salaries higher than entry-level alternatives. With Gen Z workers eager to prove themselves at lower wages, managers often calculate that keeping Gen Y is less efficient, making these individuals prime targets during budget reductions.

They Are Viewed As Costly Compared To Gen ZAndrea Piacquadio, Pexels

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Offshoring Talent Replaces Their Roles

As companies seek to cut costs, many relocate roles overseas where labor expenses are lower. Millennials, concentrated in roles vulnerable to offshoring such as customer support or IT services, are disproportionately affected, as managers view global outsourcing as more efficient.

Offshoring Talent Replaces Their RolesDavid, Pexels

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Managers Believe They Expect Rapid Promotions

Supervisors often believe that millennials seek advancement faster than traditional timelines, though this may stem more from valuing work-life balance than entitlement. When employees push for promotions before mastering their current responsibilities, managers usually view them as impatient.

Managers Believe They Expect Rapid PromotionsRicky Esquivel, Pexels

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Burnout And Disengagement Influence Layoff Decisions

Chronic stress and disengagement have become hallmarks of the post-Gen X generation work culture, with surveys showing higher reported burnout rates compared to older generations. Managers facing tight deadlines often interpret this as reduced productivity or motivation.

Burnout And Disengagement Influence Layoff DecisionsYan Krukau, Pexels

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Their Roles Are Easier To Automate

Millennials often work in fields like marketing, communications, or design, areas increasingly affected by automation. Employers see technology handling repetitive or analytical tasks that were once reserved for these professionals. As automation advances, managers may target these departments first.

Their Roles Are Easier To AutomateAntoni Shkraba Studio, Pexels

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Technostress Affects Productivity

Rapid changes in workplace technology demand constant adjustment. Gen Y employees, often expected to adapt quickly, report higher rates of technostress. This strain contributes to fatigue and disengagement. Employers may interpret these struggles as inefficiency.

Technostress Affects ProductivityYan Krukau, Pexels

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They Are Perceived As Frequent Job Hoppers

While perceptions persist of millennials as frequent job hoppers, studies show their average tenure is similar to previous generations when adjusted for age. Supervisors may still interpret this as lower loyalty during a layoff. 

They Are Perceived As Frequent Job HoppersGustavo Fring, Pexels

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Flexible Schedule Demands Are Seen As A Lack Of Commitment

Many of the post-Gen X generation place strong emphasis on remote work or flexible hours. While this resonates with evolving workplace trends, some managers perceive it as an unwillingness to fully commit. When evaluating staff loyalty, those requesting flexibility are often seen as less reliable during difficult business periods.

Flexible Schedule Demands Are Seen As A Lack Of CommitmentNataliya Vaitkevich, Pexels

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They Challenge Authority More Openly

In collaborative settings, people born between 1980 and the mid-1990s often voice differing opinions and question traditional hierarchies. While this can foster innovation, some supervisors see it as insubordination or resistance to leadership. During times of downsizing, managers may prefer employees who align more closely with established processes.

They Challenge Authority More OpenlyGustavo Fring, Pexels

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Middle Management Positions Become Early Layoff Targets

Organizations under financial stress frequently begin downsizing with middle management layers. Gen Y, who dominates these roles, faces heightened risk. Salaries exceed entry-level wages but lack seniority’s protection, which leaves employees in a precarious “in-between” position that makes them expendable.

Middle Management Positions Become Early Layoff TargetsLisa from Pexels, Pexels

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A Perceived Declining Adaptability To Corporate Culture Shifts

Managers sometimes report that professionals born between 1980 and the mid-1990s struggle with shifts back to traditional structures, despite strong overall adaptability. Resistance to shifting expectations can be interpreted as inflexibility and could influence retention. 

File:Boardroom HVA International Amsterdam Handelsvereniging Amsterdam.jpgMiltiadis, Wikimedia Commons

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Gen Z’s Eagerness Makes Them Appear Replaceable

Employers often compare them to Gen Z, who are newer to the workforce and typically more willing to accept lower wages or stricter oversight. This eagerness can highlight perceived complacency among millennials, pushing managers to choose younger employees when forced to reduce staff.

Gen Z’s Eagerness Makes Them Appear ReplaceableResume Genius, Pexels

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Work-Life Balance Priorities Create Tension With Employers

Gen Y strongly values boundaries between personal and professional life, often resisting long hours or constant availability. While this protects well-being, some managers view it as a lack of dedication. During layoffs, employers may prioritize individuals demonstrating greater willingness to sacrifice personal time for organizational needs.

Work-Life Balance Priorities Create Tension With EmployersAntoni Shkraba Studio, Pexels

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The Soft Skills Gap Concerns Bosses

Some managers perceive deficiencies in communication or leadership among the post-Gen X generation. However, evidence shows they prioritize soft skills comparably or more than others. Nevertheless, these perceptions can affect cuts. 

The Soft Skills Gap Concerns BossesYan Krukau, Pexels

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They Are Viewed As Less Disciplined By Older Managers

Gen X and Baby Boomer supervisors sometimes view millennials as less resilient or disciplined, particularly under pressure. This idea may stem from differing work norms rather than inherent traits. Whether accurate or not, it could influence decisions during layoffs.

They Are Viewed As Less Disciplined By Older ManagersPavel Danilyuk, Pexels

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Passion And Mission Sometimes Outweigh Profitability

Millennials often seek jobs that align with personal values or social missions. While admirable, managers may interpret this focus as misaligned priorities, particularly in profit-driven organizations. When economic challenges arise, employers tend to retain employees who demonstrate a stronger commitment to financial performance.

Passion And Mission Sometimes Outweigh ProfitabilityPhoto By: Kaboompics.com, Pexels

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Assuming Limited Adaptation To New Technologies

Rapid technological changes, particularly artificial intelligence and automation, require constant upskilling. Some employers perceive slower adaptation among Gen Y, although surveys show these professionals are often the most positive and proficient adopters compared to others. These perceptions can impact staff reduction decisions. 

Assuming Limited Adaptation To New TechnologiesJopwell, Pexels

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Networking Limitations Restrict Career Security

Managers often observe that these employees rely heavily on digital communication rather than cultivating strong in-person professional networks. This limited relationship-building can reduce advocacy during restructuring, leaving millennials with fewer allies in leadership who might otherwise defend their value.

Networking Limitations Restrict Career SecurityLos Muertos Crew, Pexels

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Financial Risk Aversion Reduces Advancement Opportunities

Employers sometimes perceive Gen Y as more cautious about taking financial or career risks compared to older generations. The reluctance to pursue entrepreneurial projects or high-stakes roles can make these people appear less ambitious. In competitive organizations, this perception may weaken their position when layoffs are considered.

Financial Risk Aversion Reduces Advancement OpportunitiesRDNE Stock project, Pexels

Anxiety Impacts Workplace Performance

Surveys consistently show elevated anxiety levels among millennials compared to older generations. This can lead to absenteeism, difficulty focusing, or hesitation in high-pressure situations. Managers under business strain may view these patterns as reduced dependability, influencing their decisions when determining which employees to retain or dismiss.

Anxiety Impacts Workplace PerformanceYan Krukau, Pexels

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Collaborative Style Conflicts With Hierarchical Leadership

Gen Y professionals frequently prefer inclusive decision-making and flatter team structures. While this approach encourages creativity, traditional managers often see it as inefficient or undermining authority. During workforce reductions, employees who align less with existing leadership models may be viewed as disruptive and therefore more expendable.

Collaborative Style Conflicts With Hierarchical LeadershipTima Miroshnichenko, Pexels

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Hybrid Work Performance Concerns

Moving to remote and hybrid models during the pandemic gave managers deeper insight into employee productivity. Such shifts provided insights into productivity, with some noting disengagement among Gen Y, though they show higher efficiency in many cases.

Hybrid Work Performance ConcernsAndrea Piacquadio, Pexels

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Overlap Of Skills Increases Vulnerability

Managers sometimes note that millennials’ skill sets overlap with both junior hires and senior staff. This redundancy makes it easier to replace them with less expensive employees or restructure responsibilities. Such perceptions contribute to these employees being selected more often during staff reductions or departmental cuts.

Overlap Of Skills Increases VulnerabilityFauxels, Pexels

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Middle-Skill Roles Offer Limited Career Growth

A significant portion of those born between 1980 and the mid-1990s occupy middle-skill positions that lack clear advancement pathways. Managers sometimes view this as stagnation, concluding that employees who are unwilling to climb higher may not justify long-term retention. When resources tighten, these workers are often at the top of layoff lists.

Middle-Skill Roles Offer Limited Career GrowthThisIsEngineering, Pexels

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Trophy Kid Syndrome Creates Unrealistic Expectations

Raised during an era of constant encouragement, these professionals are sometimes characterized as expecting praise and rapid rewards in professional settings. Managers under pressure may perceive such expectations as impractical, increasing the likelihood of targeting millennials for layoffs.

Trophy Kid Syndrome Creates Unrealistic ExpectationsRDNE Stock project, Pexels

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