Companies say they need to do layoffs, but mass firings can often have a long-lasting negative impact on their business, according to research and workplace experts.

Driving the news: In the first two months of the year, 435 tech companies laid off about 121,000 workers, according to data from Layoffs.fyi.

• Though the number of companies doing layoffs fell in February, it’s still the third-highest month for tech layoffs since 2020.
• The number of people laid off this year is already more than 75% of the way to 2022’s total, noted Layoffs.fyi founder Roger Lee in an email.

The big picture: Post-layoffs, the employees who didn’t lose their jobs often see a decline in performance and feel less engaged at work, especially in research-intensive industries, one study found.

• Layoffs also can lead to more turnover, as folks — typically the top performers — jump from a sinking ship. Lately, there’s been talk of people “rage-applying” for other jobs.
• The atmosphere of anxiety fostered by firings can lead to a souring in the culture, too. “Survivors may react to the layoff by defending their turf or hogging airtime to make themselves seem more knowledgeable,” writes Sarah Green Carmichael for Bloomberg.

Yes, but: Sometimes layoffs are necessary, especially if a company can’t make payroll or sees less growth ahead.

But highly profitable tech companies might want to think twice before cuts, especially in a tigh