Are You Next? Understanding Layoff Signals and What to Do

In today’s uncertain job market, layoffs have become a common occurrence. Even in stable economies, companies undertake layoffs due to changes in strategy, industry shifts and economic conditions.

Regardless of performance, layoffs can happen to anyone, so it’s essential to understand the signals and prepare for the possibility.

Recent news has reported cuts and layoffs within the tech industry and other sectors, with companies like Google and Meta reducing their workforce by thousands. Despite this, the unemployment rate is at its lowest point in decades, at 3.4%.

In January, the leisure and hospitality industry saw an addition of more than 128,000 jobs, making it the fastest-growing industry, according to the US Bureau of Labor Statistics. Other sectors like health care and business services are also experiencing job growth.

Allison Hemmings, CEO of The Hired Guns, a recruiting firm, advised individuals to exercise caution and recognize that they have a reasonable chance of retaining their job.

My company is laying off workers — how do I know if I’m safe? https://t.co/E05ej3QLnf pic.twitter.com/O3vXTQofRm

— New York Post (@nypost) April 3, 2023

Hemmings emphasized the importance of remaining focused on making a meaningful contribution in the workplace and ensuring that the individual and their supervisor are aligned regarding what constitutes success in their respective roles.

Experts closely monitor inflation levels, whether the US will experience a recession with a “soft landing,” and how this may impact the job market in 2023. It is advisable to remain flexible and vigilant for signs of a potential layoff.

Here are some signals that a layoff may be coming

Company performance

If the company is experiencing financial difficulties, layoffs may be necessary to cut costs and stay afloat. Monitor the company’s financial statements and news reports for signs of trouble.

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Reorganization

A company undergoing a major reorganization may eliminate positions or departments, leading to layoffs. Watch for organizational changes and ask questions if you notice significant changes in reporting structure or responsibilities.

Merger or acquisition

If two companies merge or one acquires the other, there may be redundancies and layoffs to eliminate overlapping positions. Please consider merger or acquisition announcements and what they mean for your role and department.

Performance reviews

Photo credit: Adobe Stock

If you receive a negative performance review, it may be a sign that your job is in jeopardy. Take steps to improve your performance and candidly talk with your manager about your concerns.

Rumors

Pay attention to rumors and whispers around the office. While not consistently accurate, rumors can provide early warning signs that something is amiss.

Steps to take if you suspect a layoff is coming

Update your resume and LinkedIn profile

Even if you aren’t actively searching for a new job, keeping your resume and LinkedIn profile updated will make it easier to start your job search quickly if needed.

Network

Build relationships with colleagues, former colleagues, and industry contacts. Networking can lead to job opportunities and provide a support system if you do experience a layoff.

Save money

Build up an emergency fund to cover your expenses in case of a layoff. Aim to save at least six months’ worth of living expenses.

Consider upskilling

Look for opportunities to upskill or reskill to make yourself more marketable. Attend training sessions, take online courses, or earn additional certifications.

Have a plan

Carefully consider what you would do if the company laid you off. Look at your options for finding a new job, such as working with a recruiter, applying for unemployment benefits, or starting your own business.

In conclusion, layoffs can happen to anyone, so it’s important to understand the signals and be ready. By protecting yourself, you can weather a layoff and come out stronger.

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