In an era marked by rising burnout and deepening loneliness, a new report has revealed that 58% of employees on both sides of the Atlantic have considered quitting their jobs due to mental health struggles.
The findings from Headspace’s 2025 Workforce State of Mind report, to mark Mental Health Awareness Week in the UK and Mental Health Awareness in the US, reveals just how fragile workplace wellbeing has become. It also highlights why companies can no longer afford to treat mental health support as a perk. It’s now a strategic priority tied directly to productivity, retention and organisational resilience.
The global survey gathered insights from over 2,000 workers in the US and the UK, as well as 250 HR leaders. What emerged is a clear message: the current state of work is pushing employees to the brink.
HIDDEN COSTS OF WORKPLACE BURNOUT
The survey revealed some of the hidden costs of burnout, such as:
- 40% of employees have taken mental health leave – a signal that burnout is no longer the exception, but the norm.
- 71% of workers put in time outside of their scheduled hours weekly, and 92% report their sleep is disrupted by work.
- Middle managers are particularly vulnerable, with only 38% feeling empowered to enforce work-life boundaries.
“These are not just HR metrics – they’re business performance indicators,” said Lisa Mulrooney Gross, Chief People Officer at Headspace. “When employees don’t feel supported, they disengage, and eventually, they leave. Investing in end-to-end mental health support isn’t a luxury – it’s a bottom-line imperative.”
LONELINESS: THE NEW WORKPLACE EPIDEMIC
Remote work, while offering flexibility, has exacerbated another challenge: loneliness and isolation. According to the report:
- 75% of remote workers have cried at work, and over half of all employees say they’ve done the same.
- The top retention drivers? Opportunities for connection – team-building, culture programming, and development opportunities.
- Employees active in Employee Resource Groups (ERGs) reported a 45% increase in feelings of connection and belonging.
AI-DRIVEN SUPPORT
As organisations wrestle with rising healthcare costs and shrinking HR budgets, many are looking toward technology to fill the gap. The report found that:
- 94% of HR leaders are interested in AI-powered mental health tools.
- 89% of employees would feel comfortable using mental health resources enhanced by AI.
For large organisations like Microsoft, mental health isn’t about reacting to crises – it’s about building a culture that sustains employees proactively. “Wellbeing isn’t just about support in tough times,” said Kristen Roby Dimlow, Microsoft’s Corporate VP of Global Talent Acquisition and Total Rewards. “It’s about empowering employees with tools that support mental health daily.”
WHY BUSINESSES MUST ACT NOW
At a time when economic headwinds are forcing companies to make tough calls, cutting back on mental health support is a short-sighted move. In fact, 95% of employees say they feel better after using employer-provided mental health benefits. The ROI is clear: better morale, reduced turnover, and higher productivity.
“We know that when employees feel better, they’re more engaged, productive, and loyal,” Gross said. “And that’s the kind of culture every organisation needs to survive – and thrive – in 2025 and beyond.”
The full report from Headspace reveals burnout, boundary breakdowns, and the potential for AI to transform mental wellness at work. Download the report here.
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