Written by Vaclav Koranda

Layoff Survival Guide: Hope for the Best, Prepare for the Worst

In the recent years, a significant wave of layoffs swept across various industries. Unfortunately, the trend shows no signs of slowing down. Companies such as Google, Duolingo, Citigroup, and Amazon, among others, announced and performed significant workforce reductions. No company or industry can be considered a safe haven nowadays, and you may find yourself impacted sooner than anticipated. Let’s explore what you need to know to navigate and survive this layoff tsunami.

How to Anticipate a Looming Layoff

Layoffs are typically announced without prior warning. Companies aim to maintain confidentiality for as long as possible to prevent rumors, speculation, leaks to competitors, and minimize the impact on the remaining staff and customers. While this approach may be understandable from the company’s perspective, it doesn’t afford employees any time to prepare for the financial, emotional, and logistical challenges they may face. To stay one step ahead, it’s essential to learn how to recognize specific situations that may indicate an impending layoff. Here are the most common signs to look out for:

1. Bad financial situation: This is probably the most common reason for layoffs. When a company is losing money, it may need to cut costs in order to stay afloat. One way to do this is to reduce its workforce. Layoffs can be particularly common during economic downturns, when many companies experience financial difficulties. 

2. Mergers and acquisitions: When two companies merge or one company acquires another, there can be overlap in the workforce. This usually leads to layoffs, as the combined company may not need as many employees as the two separate companies did. 

3. Restructuring: Companies occasionally need to reorganize their operations to enhance efficiency or competitiveness. For instance, a company might opt to outsource certain operations or divest/shut down an unprofitable business segment, leading to staff reductions in the affected departments.

4. Automation: Automation driven by digitalization and AI is replacing human labor in many industries. This leads to layoffs, as companies no longer need as many employees to do the same work.

5. Technological advancements: As old technology is replaced with new advancements, experts in the outdated technology may become obsolete. While some employees can be reskilled for the new technology or other relevant roles, in many cases, the transition is not feasible, leading to layoffs.

6. Changes in consumer demand: If there is a sudden drop in demand for a company’s product or service, the company may need to lay off employees in the affected parts of the business. This can happen for a variety of reasons, such as a change in consumer preferences, increased competition, or a global event like the recent pandemic.

7. Overstaffing: Certain companies, particularly in the tech sector, are known for cycling through phases of overhiring and layoffs. If your company has a history of such patterns, be vigilant when the period of mass hiring concludes—this often signals an impending wave of cutbacks.

Get Off the Layoff List

During a layoff, employees aren’t selected randomly; they are chosen based on various criteria and placed on a layoff list. The key person behind these nominations is — your boss. Whether he admits it or not, every manager has a potential layoff list in his head. And honestly, he should. In today’s unpredictable market, you never know when the axe might fall, and they will be asked to share their nominations with upper management and HR. Your goal is simple: stay off this list.

Learn how in my other article here: How to Avoid Getting Fired

Brace for Impact

If you’ve already been hit by a layoff, finding another job should become your top priority. The sooner you do so, the better, as a prolonged period of unemployment can adversely impact your career. Preparing in advance can significantly reduce this risk. Here are the essential steps you should take:

Craft a powerful resume

Your resume serves as the cornerstone of your job search, and a potential gateway to interview. Begin with a comprehensive version that highlights all your knowledge, skills, extensive experience, and notable achievements. Employ active language and incorporate quantifiable metrics to showcase your impact. Tailor your CV for each job application to demonstrate how you match all the job requirements. A professional template can help you pass through automated screenings as well as make a positive impression on recruiters. Here you can download a professional resume template for free.

Learn more here: Your Complete Guide to Writing a Perfect Resume (Plus a Free Template)

Boost your LinkedIn profile

A well-crafted LinkedIn profile is a powerful tool for attracting opportunities and building a robust professional network. Enhance its visual appeal with a high-quality photo and ensure completeness across all sections. Create a compelling headline and summary, and add skills and endorsements. Ask your former supervisors and colleagues for recommendations. Make sure your profile is visible and actively grow your online network.

Network

Networking not only broadens your job search but also enhances your industry knowledge and provides valuable insights into potential career paths. Seize every opportunity to expand your professional network. Attend alumni gatherings, professional conferences and conventions, events in your local community etc. Reach out to your professional contacts and mention you are potentially open to new opportunities.

If you left your previous employer on good terms, don’t forget to check in with your former manager. Even if they aren’t hiring full-time, they may still have contract or part-time work.

Learn how to create and leverage a strong professional network: The Power of Networking

Sharpen your skills

Continual skill enhancement is essential for staying competitive. Take online courses on popular platforms like Coursera or Udemy to enhance your knowledge, and acquire new certifications and badges to make yourself more marketable. Consider reskilling yourself if you see your profession is on the decline and job opportunities are becoming scarce.

Learn more here: Skills You Need to Learn to Earn High Income and Achieve Great Career Success

Check your market worth

Understanding your market worth is pivotal for negotiating a competitive salary. Research market benchmarks, factor in relevant parameters like your industry and geographical area to determine your value in the job market. Being well-informed about your market worth equips you to confidently respond to salary inquiries during the early stages of the hiring process, increasing your chances of securing a fair compensation package.

Learn more here: Secure a Higher Pay: How to Negotiate Your Job Offer

Prepare for interviewing

Prepare your answers to standard interview questions, conduct mock interviews with friends or colleagues to boost your confidence. Prepare your responses to common interview questions, and conduct mock interviews with friends or colleagues to refine your presentation skills and boost confidence.

Learn more here: Mastering Job Interview Questions (Plus a Free Cheat Sheet)

Stay informed

Staying informed about your company’s developments is crucial for navigating uncertain times. Regularly check official communications regarding the company’s financial health, potential mergers and acquisitions, and any events that could signal organizational changes or layoffs. Distinguish carefully between factual information and rumors.

Backup important information

Keep a personal copy of all important information that may be useful later in a legal dispute with your current employer or as a reference during your job search. Store it securely on a thumb drive, your personal Google Drive, or similar tools. Include documents such as past performance reviews, positive feedback emails, messages, diplomas, certificates earned at the company, target sheets, healthcare and insurance documents, and a contact list of colleagues and peers in the industry.

Know your rights

Understanding your legal standing provides you with a solid foundation to safeguard your professional interests during a potential layoff. Familiarize yourself with the employment laws and regulations applicable in your area to understand your rights in the event of a layoff. Establish connections with a reputable lawyer specializing in employment law and the local labor relations office. Gain insights into how they can assist you if your layoff was unlawful, and be prepared to advocate for your rights.

Start Your Job Search Now

In some cases, there may be no obvious preceding signs, or the sequence of events leading to a layoff may unfold rapidly. Therefore, it is wise to be prepared at all times. Most importantly, initiate your job search promptly—don’t wait until you face a potential layoff to start exploring new opportunities. The earlier you begin, the more prepared you’ll be, and the broader your range of options.

In fact, those who consistently engage in a proactive job search approach tend to maximize their career potential. Staying active in the job market allows you to stay informed about market trends, salary ranges, and maintain connections with recruiters. Each interview becomes not just a chance to secure a position but also an invaluable networking opportunity. By adopting a continuous job search mindset, you not only stay ahead of potential layoffs but also position yourself for long-term career success.

Conclusion

Remember that layoffs are business decisions and are not personal. Maintain a positive attitude and concentrate on your next career move. But what’s even better—you can apply certain clever tactics to avoid being laid off! Learn how here: The secret of how to prevent being fired, even during layoffs.

If you want to learn how to manage your time, finances, and mental health after a layoff, you can find a comprehensive guide in my book, Get Your Dream Job.

Good luck!

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