Planning for layoffs and frequently asked questions
Are layoffs coming in 2023?
Right now, the long-forecasted recession seems to be more imminent than ever. Some economists are predicting more layoffs in the near future.
Why are layoffs happening?
High tech companies sometimes act as the canary in the economic coal mine. High tech companies currently are struggling with access to cheap borrowing and venture capital. Furthermore, consumer spending has backed off. Other high tech companies are cutting back their workforce in anticipation of a coming recession.
Layoffs happen when companies need to cut down expenses. Often, employees are the most expensive part of most businesses and so they’re often the first element to be impacted when recessions happen or business slows down.
What should I do if I’m at risk of getting laid off?
- Work on your resume now. It can be hard to re-construct your work experience after you’re no longer with a company. When exactly did you do that project and what percentage impact did it have on the bottom line? Take the time while you’re still employed to get all the information about your current job that you may need to market yourself for your next job.
- Build your network. 75% of all jobs are found via referral. It’s all about who you know! Layoffs are a universally traumatic time period, for the people that leave and those who stay. If you are axed, know who you can reach out to for help finding another job and who will be your reference. Also keep in mind that often you can go to work for your competitors (provided there’s not a non-compete in place) or even your customers. Make sure to get personal contact information for people who will be allies in your upcoming job search.
- Get on LinkedIn. I often joke that only three kinds of people active on LinkedIn: recruiters, sales people, and job seekers. If you get on LinkedIn and start interacting with people and building your personal brand with insightful posts, you send a strong signal that you are available to work.
- Start applying. While you’re updating your resume and solidifying your network, you might as well apply for a couple jobs. You can take a couple of interviews and who knows…maybe you’ll find a great company to work for? Even if you don’t find a job right now, this will help you exercise these skills and get a feel for what the job market is like right now.
- Save some money for a rainy day. I’m not a financial counselor, but I will point out that many job seekers feel like they have to say “yes” to the first thing that comes along because they need a paycheck ASAP. If possible, try to save some money to ride out a period of job loss so that you can find the right opportunity and not just an opportunity. Similarly, you can start researching COBRA health insurance options (or other marketplace options) so you’re not left without insurance.
- Imagine the worst, hope for the best. While it’s not fun to imagine getting laid off, doing so can help emotionally prepare you for the worst case scenario. Doing this emotional preparation allows you to respond better in the moment and to hit the ground running if it does happen. Job loss often comes with grief and this can help you process your grief faster so it doesn’t get in the way of your new job search.
Who gets laid off first?
Layoffs often affect many people and companies all do it a little differently. Here’s some of the most frequently targeted groups of people:
- Mid-level managers. Often, companies will seek to downsize by cutting out management. If you are a mid-level manager overseeing a small team, you may be at higher risk if your company were to merge these smaller teams.
- Less tenured employees. Sometimes there will be a feeling of “last in, first out.” If you were recently hired you may be at higher risk.
- Higher paid employees. Employees who have been around longer and are paid relatively higher than their peers doing similar work might also be at higher risk of lay-offs.
- Lower performing employees. Sometimes companies will target specific employees based on performance reviews.
Who can help if I get laid off?
Peak Performers is happy to! Please browse our jobs here! Also be sure to reach out to your local workforce development center and your personal network.
Additionally, make sure to check out our local resources list. Remember, you’re not in this alone.