8 Critical Signs A Layoff Is Imminent
There is no such thing as “job security”.
It’s a myth. Get over it.
Proof is even people working at large corporations like Google can lose their jobs after 15 years of loyal service and find themselves out in less than 24 hours.
The success of a company largely depends on its people, yes.
But from a financial perspective, headcounts are like any other expense—just a cost on the balance sheet.
Hard to hear for many but it’s the reality of any successful business.
The news is full of examples similar to this.
And it just tears my heart to see all these people acting as if they never imagined they could be laid off in a day, that they were “so surprised, shocked” and that they never expected it:
What they mean is: ”I gave it all at my job and for the company. So the company owes me a job”.
They realize that they spent all these years working harder on their job than they did working on themselves.
They learned everything about their job but stopped developing their own skills, and doing whatever was necessary to follow their dreams.
So the wake-up call is brutal.
The truth is nobody’s coming to save you. You have no one to blame, but yourself.
The myth from the Industrial Revolution era where your job was almost guaranteed and worked at a company for your entire life without questioning it belongs to the past.
Get over it and start focusing on yourself.
The only question you should ask yourself on the job is not “What am I getting here?” but “What am I becoming here?”
Right now, you might be doing great at your current job.
But it’s not a reason to sit back and relax.
Not a reason to waste your free time with anything but productive activities.
Economics change. People come and go.
Your organization changes almost every new fiscal year.
You know it, and yet.
Many people prefer their comfort zone rather than pushing their limits to learn and grow.
Moreover, with AI, today there are even more chances your role can potentially be replaced in the near future.
So what are you doing about it? Waiting for things to happen to you?
Or take the reins and shape your life as you want it to be?
George Bernard Shaw has a great saying that goes:
“There are three types of people in life:
Those who make things happen,
those who watch things happen,
and those who wonder what happened!”
Which one are you?
Any knowledge you have right now will become obsolete in two years.
Kevin Herrholtz, VP of CS whom I interviewed recently in CS My Way says it best:
“You have to be very committed to learning every day something new about your chosen field. I still make it a point to read or watch webinars for at least 30 to 60 minutes every day. I tell myself I need to consistently “fill the tank” with knowledge.”
That’s it.
That’s the mindset that will help you keep building on solid foundations so that whenever a change happens, you can stand strong and keep moving forward.
Now, unless you’re part of the company’s confidential discussions, you can only look for signs of an imminent layoff.
So here are the top eight key signals that will help you prepare for a potential storm coming your way:
1. Leadership Changes
The most obvious.
If recent leadership transitions within your team have involved execs known for implementing layoffs in other groups, it’s a strong sign of a similar fate for your organization.
2. Investments without Details
If your company invests in tools and platforms but suddenly stops the implementation, or delays plans, a potential layoff might be in the cooking.
3. Company Restructuring
Keep an eye on signs such as reorganizations, office space reductions, closed-door management meetings that exclude staff, or changes in management behavior.
These could be announcing an upcoming headcount reduction.
4. Financial Indicators
More red flags and strong signs that a layoff might be imminent:
Declining revenues,
Missed targets,
industry downturns,
hiring or expense freezes,
program eliminations,
or payroll bloat—companies often cut pay and benefits first. So beware if your company spends over 30% of its income on staff salaries. When times are challenging, cutting on these two lines is often the fastest way for the business to save money.
5. Communication Changes
Your boss suddenly starts to micromanage you or gives you more tasks than you could ever handle.
These can be signs that could show preparations for a post-layoff workload adjustment.
6. Performance Reviews
If performance evaluations are delayed or done without any enthusiasm or long-term planning, it might signal that your position is at risk of being affected by upcoming layoffs.
7. Training Others on Your Role
This one happens more often than people expect.
If your boss asks you to train a colleague from another department on your primary job, beware.
Your role is potentially at risk.
8. Company Financials
A layoff is not guaranteed, but most likely:
Performance metrics are down consistently.
Sales teams keep missing their targets and the CFO revises forecasts way down.
The company keeps piling up more debt from its service providers.
Other Top Signs That A Layoff Might Be Coming:
