The U.S. is entering another major wave of corporate layoffs; one we haven’t seen at this scale since the 2009 Great Recession. But this time, the legal environment looks very different. Under the second Trump administration, EEOC Chair Andrea Lucas hasn’t just "shifted focus,” she’s flipped the script. The commission is now emphasizing what Lucas describes as “colorblind” enforcement. In practical terms, that means heightened scrutiny of any layoff decisions the agency believes were influenced by DEI considerations, particularly where they think whites or males may have been disadvantaged.
In a recent interview with Bloomberg, Lucas made it clear that she is monitoring mass layoffs. Although she didn’t name any companies during the interview, she was clear about the risks for companies slashing headcount. She specifically highlighted concerns about a “double whammy”: where there are disproportionate impacts on older workers to save costs and any situations where DEI principles might have shaped decisions about whose jobs were eliminated.
Just how big is this recent layoff wave? The numbers from Challenger, Gray & Christmas are staggering, with over 100,000 job cuts in January 2026 alone. But it's the way workforce reductions are being managed that’s triggering the red flags, including the following examples that are catching the attention of enforcement agencies:
Demographic Balancing: A recent subpoena issued as part of an EEOC charge investigation shows, for the first time, where this new enforcement strategy is headed. The EEOC is effectively auditing the employer to see if "demographic balancing" was the real reason certain White employees were let go.
The AI Rationale: Several companies have recently announced layoffs due to the adoption of artificial intelligence, aiming to remove layers of bureaucracy and redirect resources to increase efficiency. Companies should be careful to evaluate these rationales, especially if many of the employees in the jobs being eliminated as "non-AI aligned" are age 40 or over.
The "America First" Angle: The EEOC has also announced a focus on discrimination claims against American workers. It’s a national-origin equity spin we haven't seen before. Companies should review any proposed RIF lists to evaluate whether U.S. citizens are laid off while visa holders are retained.
Don’t let the drop in overall EEOC lawsuit filings fool you. While the number of cases fell to 94 in FY 2025 from 144 in FY 2023, Chair Lucas has been clear: the agency isn’t trying to file more lawsuits, it’s trying to file bigger ones. Her stated goal is to go after cases that challenge what she sees as “discriminatory cultural assumptions,” and she’s cautioned that no one should assume this will be a low litigation era.
With that stance in mind, corporate restructuring has become more than a budgeting exercise. It’s now an area where federal regulators are paying close attention. Any company planning a reduction in force (RIF) in 2026 will have to navigate the “double whammy” of potential age discrimination and so-called “reverse discrimination” claims.Organizations preparing for layoffs should be ready to:
Validate their selection criteria: using skills based matrices, performance data, tenure, and other defensible business reasons
Run the numbers: conducting adverse impact testing and regression analyses before any reductions in force are finalized
Document the business reasoning: not just a line about redundancy, but factual evidence supporting why certain roles or functions are being eliminated.
Corporate restructuring isn’t just an internal decision anymore. It’s something that could attract a federal investigation. If the data shows disproportionate harm or intent to discriminate against older workers or to employees based on race, sex, national origin or other protected traits, the EEOC will take notice. In 2026, being “neutral” isn’t just the safest path, it’s the only real defense you have.
Berkshire’s People Insights team can help your organization navigate a corporate restructuring. Our team of industrial/organizational psychologists and compliance experts understand this new enforcement environment and can help your organization use data to make defensible workforce reduction decisions.