With the current state of the economy, many organizations are taking cost-saving measures such as lowering operational budgets. In unfortunate circumstances, this includes lowering wages and job loss through layoffs. Companies use downsizing as a temporary measure to offset costs. They happen for different reasons including:
- Paying off debts
- Lack of profits
- Losing investors
- Trimming spending
- Increasing the bottom line for senior stakeholders
- Restructuring after a takeover
As the economic landscape changes, layoffs are becoming common enough that every worker needs to be prepared for the possibility. Even when a company is successful, it can still fire employees. For instance, Samsung plans to cut up to 30% of jobs globally even after experiencing operating profits of $4.9 billion for the 2022-2023 fiscal year. Your employer being financially successful isn’t an inoculation and there are usually signs that you’re about to get laid off.
Signs you’re about to be laid off
1. No new hires
A company remaining static isn’t always a sign that it’s about to go through a round of layoffs. However, if an employee leaves and the company doesn’t take steps to hire talent to replace them, that’s a sign they want to cut costs on salary. Sometimes it may also be that the employer thinks the role is redundant. However, if other workers are saddled with the role of that position and the company is dragging its feet on filling the vacancy, it may be a sign that layoffs will happen. The company can also stop using contract workers even when they let go of full-time workers.
2. Funding freeze
When you join a company, they may offer certain perks like cab rides, free meals, a company bus, bonuses, or travel. As time goes on, the company can pull back these perks to the point where only very lean perks are offered. Sometimes, the company can completely stop offering them and only reserve them for certain departments or seniority. They can also put more stringent measures to stop more workers from using them whenever they want to.
3. Development slowdown
If your company had launched initiatives, you’ll notice them pump the brakes on such projects when layoffs are imminent. If the project involves multiple departments, you’ll notice members in the department about to get culled will appear to have fewer responsibilities.
4. Manager shifts
The leadership of your company will change their behaviour. If they are being moved from your department to another to save their job, they’ll be less involved with your work. In addition, if the manager is also part of the layoffs, they may be getting micromanaged by more senior managers. The upper management can start demanding details behind every single field trip, meeting, expenditure, or communication. You may also notice the CEO or CFO moving around your offices as though trying to justify every individual’s job role.
5. Shutdown
Sometimes the layoffs are a bit more permanent. Your company could shut down or even close an entire branch regardless of whatever role you play. Before this happens, you’ll notice a downtick in duties. If workers come in late, there are no repercussions, no money is being disbursed for resources, no repairs are being done, you can’t replace a broken device or there’s barely any work at all. Sometimes, you’ll also find yourself doing busy work or casual errands outside your job description.
6. Rumours
If you work for a large company, there may be media leaks of upcoming layoffs before your employers make an announcement. Competitors may also be aware and let people within your organization know. Usually, the first people to be told of planned restructuring are directors and managers. They may let their close co-workers know who don’t tell other workers full details which leads to the spread of rumors and misinformation. Other companies can also trigger this in the same industry having mass layoffs. This happened during the pandemic with the hotel industry.
7. Delayed salaries
When the company lacks operational money, it may redirect payroll funds to manufacturing or other departments that can accelerate production. When payroll money is redirected, many workers are forced to live on partial salaries. This can be caused by bad investments, clients not paying on time, creditors, and investors demanding repayments. Companies can also reduce salaries and remove allowances to remain operational. When management starts taking such measures, it may be a sign that a layoff is coming.
8. Low sales
When the product your company makes isn’t moving, there will be fewer profits or operational funds. Some companies get investors or loans to improve operations or marketing to get products moving again. However, this doesn’t always work out. Other organizations decide to cut their losses and get rid of that department. The company could also have trouble paying suppliers. When suppliers refuse to stop operating with the business you work for, this is a sign of layoffs. Slow Season, Fast Cash: 7 Ways to Help Your Small Business Survive the Slow Season
9. Work hours
Sometimes the company can reduce the number of hours you work from the office. In addition, management doesn’t doesn’t tell you to work from home. When work hours keep reducing and there are no instructions about changes to the schedule, this can be a sign of your facility being downgraded or a shutdown.
10. Office space
If your company has a larger working space and starts going through financial trouble, they may move to a smaller space to save up on rent money. In addition, this can lead to layoffs because the company will want to operate with smaller staff and surplus workers won’t be allowed to work from home. This can also happen when there are offices in different buildings and they consolidate all the workers into one building in smaller offices. Consolidating workers into a smaller office space can be a red flag that layoffs might be coming soon.
How to prepare when you know you’re about to lose your job
Once you start noticing these signs, don’t panic. There are steps you can take to help you manage the transition period from leaving your current job before you get a new one. Don’t listen to rumours which can create an atmosphere of uncertainty. Instead, focus on actionable steps to safeguard your finances and grow your career.
1. Don’t act out
Layoffs can seem unfair, especially when you are doing well at your job. Getting fired for something that wasn’t your fault can easily trigger you. But don’t succumb to your worst impulses. Don’t post scathing tweets or TikTok videos complaining about the company. Even if it’s justified, you don’t want to attract that kind of notoriety. If your job was public facing, you can post that you have been laid off and are looking for similar work. But your tone has to be professional and emotionally withheld. Don’t insult your former employers or blast coworkers.
2. Look at your finances
Do you have savings? What are your bills? Were you living hand to mouth? If your job was the only way you could survive, you’d need to get another job as soon as possible. This can lead to a lot of pressure. Use your connections from your previous position to get as many interviews as possible. Leverage your relationships even before the layoffs are confirmed. If you have savings and an emergency fund, you’re under less pressure to get a new job as soon as possible. Try to avoid accumulating debts and tone down your expenses until you get a new position. Finances: Money Saving Tips To Survive A Loss Or Reduction Of Income
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3. Level up
If you have the resources, use the downtime to get more advanced training in your field. Get a master’s degree or advanced certification for your position. Look for more lucrative specialization training to get more job opportunities. If you can’t afford to pay for it out of pocket, you can look at getting student loans or bank loans for such a course. However, you should only get a bank loan if you’re certain the course will guarantee you a new job. Careers: 7 Skills That Will Be In Demand In 2024
4. Network
Don’t stop attending events held by people in your network. Take every opportunity to put the word out there that you’re available. As mentioned earlier, use the relationships you’ve created in your previous positions to get an interview. Networking is a great way to get leads and being relentless will eventually be rewarding. 6 Ways To Improve Your Job Search
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5. Talk with a trusted manager
If you aren’t certain about retrenchment, find a manager you can trust to get exact information about what’s happening. Sometimes they’re under a gag order not to reveal to workers what will happen. But if you’re friendly and trustworthy, they can let you know in advance whether you need to start looking for a job or not.
6. Don’t resign
Resigning or quitting can make your company forego giving you any severance benefits you’d have otherwise received. Absconding is worse too because that means you don’t get a letter of recommendation or certificate of service. Try to hold on until the company announces the layoffs.
7. Get retrenchment insurance
Working in volatile industries means retrenchment will be more common as time passes. Even industries like tech that seemed the most secure for the longest time have some of the biggest layoffs globally. Invest in retrenchment insurance if you work in such an industry so that it can help you if you end up in such a situation. This is something you should plan for in advance. Planning Ahead – Why You Should Consider Getting An Employment Insurance Cover In Case You Lose Your Job
Check out:
How To Handle Financial Stress During An Economic Crisis (Like The One Happening Right Now)
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