Layoffs can have a significant impact on organizational culture. When employees are let go, it creates a sense of fear and uncertainty among the remaining staff. The morale and motivation of employees can plummet, leading to decreased productivity and engagement. Trust levels may also decline, as employees wonder if they could be next. Additionally, a sense of loyalty towards the organization can diminish, with employees feeling disposable rather than valued. This can result in a negative shift in the overall culture, with a lack of teamwork and collaboration. It is crucial for organizations to address these challenges and provide support to employees during times of layoffs to mitigate the negative effects on the culture.