Warning Signs Your Company Might Be Considering Layoffs
Kim Johnson
Kim Johnson
While I'm hoping many companies start hiring again in the new year, I fear the worst: that more companies will announce layoffs in January after the holidays.
Being let go su-ks no matter how you look at it, even with a generous severance, but it's even worse if you don't see it coming.
In this article, I'm sharing the top eight signs that your company might be considering a layoff. While some companies are quite good at concealing an impending reduction in force, there are still some signals you can look out for to know what's coming.
Financial Struggles: If your company is grappling with financial challenges, unmet goals, declining sales, or a loss of customers, consider these to be your warning signs. Many companies are struggling right now, but has your company announced how they plan to address it? The answer might be that they're considering downsizing to cover their losses.
Repeat Layoffs: A previous round of layoffs within the last year is a concerning precedent. If the root causes of the initial layoffs haven't been adequately resolved, the company may find itself in a position where further workforce reductions are deemed necessary. Take note of any lack of concrete changes or improvements post-layoffs.
Unexpected Reprioritization: New products, projects, features, and growth opportunities have suddenly been de-prioritized in favor of cost reduction, maintenance work, and merely, “keeping the lights on.” When expansion projects and innovative ventures are put on the back burner, it's a clear sign that the organization is streamlining operations to weather financial challenges. The company is only hoping to survive, and they won't need as many people to accomplish that.
Redundancy: Mergers or acquisitions may introduce redundancy across departments, leading to internal competition for projects. Monitor how projects are allocated across teams. If there's a scarcity of mission-critical projects and teams are vying for limited opportunities, it suggests impending changes. Visible redundancy could indicate a need for downsizing.
Shifting Responsibilities: Unexpected transfers of work from one team, department, or location to another will often precede layoffs. If your role or projects have been reassigned, this may signal that the company is strategically redistributing responsibilities in preparation for a layoff after the transfer is complete.
Budget Cuts: Reduction of non-essential perks can be an ominous sign, which might include skipping the annual holiday party, eliminating your professional development stipend, or losing other employee benefits. These budget cuts may signify a looming layoff unless explicitly communicated as preventative measures to avoid a reduction in force.
Hiring Freeze: A declared hiring freeze, coupled with the departure of recruiters and talent acquisition specialists, should raise some concerns. As with budget cuts, a layoff might be next unless the company has expressed that this is part of their plan to prevent a layoff. If your company hasn't backfilled positions for departing employees, especially for mission-critical roles, it's not a good sign.
Vanishing Leadership: A sudden departure from top leadership or a decrease in open communication may indicate internal challenges. Silence, especially if you're used to frequent updates, is a clear indication that something is going on behind the scenes. If leaders are spending more time in meetings with HR, it could be a sign that significant organizational changes, including layoffs, are in the pipeline.
Unfortunately, layoffs can affect anyone, even top performers. Are you doing everything you can to prevent, mitigate, and prepare for the possibility of losing your job.