7 Signs Your Company May Be About To Lay Employees Off

Even if you’re a motivated, skilled employee, you could find yourself facing a layoff. Companies can experience tough times, and when they do, layoffs are common. You could be a victim of bad circumstances and left rushing to find a job. Before you end up in this situation, learn how to identify the signs that your company is about to make a layoff.

Why Do Companies Lay Off Workers?

Before you know the signs of an impending layoff, you should understand what companies lay off workers. Unlike being fired, getting laid off is no indication of your value or skill. Rather, a company does layoffs because they are experiencing hardship.

In some cases, the layoff is the result of a struggling economy. When times get tough, some businesses don’t perform well. In an effort to tighten the budget, a company might choose to cut down on its workers. The same situation can happen if the company experiences a decrease in demand. If business changes and there’s no longer a need for 20 production people or office staff, the company will need to lay off some workers.

Another common cause of a layoff is a change in management. If your company undergoes a merger, you could be a victim of layoffs. Unless your boss fought for their staff in the negotiations, the new management could decide to eliminate the previous employees and use their own staff. Even new technology can play a role in layoffs. If a company discovers a new process with advanced technology, it may no longer need people to fill the role.

It’s Not You, It’s Them

If your company lays you off, it’s not because you haven’t done well. You could stay late every day or have a stellar record, but this doesn’t guarantee you a job. In today’s day and age, it’s common for companies to grow quickly and shrink quickly.

When a company makes layoffs, they don’t focus much on performance. They think about the actual position and whether or not it’s necessary. For example, an advanced technology could make your position obsolete. You might be the best worker in the world, but the company would no longer need you.

Typically, your ego takes a hit when you lose your job. But you shouldn’t let this happen if you’re a victim of a layoff. It’s important to remember that you’re an asset and that there’s at least one company out there that can see your value.

Signs of a Layoff

So, how can you prevent being laid off? There isn’t really any job or company that’s safe from layoffs. However, there are almost always signs of a layoff. If you notice any of the following, you should start looking for other jobs. Although these signs don’t guarantee a layoff, they indicate that it’s time to have a backup plan.

1. Missed Revenue Goals

During the quarterly meetings, pay attention to revenue. If the company seems to miss revenue goals every few months, the business is in trouble. They could be close to making layoffs, and you should expect the worst. The company needs to do something to lower the cost of operations.

2. Executives Quitting

If you notice executives quitting or resigning, don’t walk to the escape door - run. There’s really only one reason for executives to start quitting en masse, and it’s not a good reason. In fact, executives usually only start quitting when layoffs are in the near future. At this point, you should scramble to find another job.

3. Risky Choices

For the most part, company executives make safe decisions. They don’t want to put their business in jeopardy even if the potential reward is great. But if the company is suffering, it might start taking risks. At times, a large risk could be the only way to try to save the company.

It’s worth mentioning that there’s another reason for a company to make risky decisions. If the management is poor, they won’t make intelligent and calculated decisions. This is also a sign that layoffs are coming. Either way, you probably don’t want to wait around and see what happens. By staying, you’re taking an even bigger risk than the company.

4. Hiring Freeze

HR often issues a hiring freeze when a company is struggling to remain afloat. After all, why hire new people when the company is floundering? If your company starts a hiring freeze, you may want to look elsewhere. This is an indication that layoffs are in the near future.

5. Bad News

As an employee, you should always pay attention to the state of your company. Industry news is a great way to do that. Every so often, search for your company in newspapers and industry magazines. If you see articles that indicate tough times for your company, there could be layoffs coming soon. It’s time for a plan.

6. Budget Cuts

When cash flow isn’t what it should be, companies often make budget cuts. While there are many ways to cut budgets, one of the more common ways is to have layoffs. Pay attention to memos and talks about unpaid vendors or spending cuts. Your company is amidst difficult times.

7. Your Boss Acts Strange

If your boss suddenly seems evasive or awkward when you ask about the future or current state of the company, you should be wary. They might be hesitant to speak with you because of a plan for layoffs or because of financial uncertainty.

What Should You Do?

If you notice the signs above, you need to make a decision. Do you want to stay on a sinking ship, or do you want to have an escape plan? For job security, you should start looking for a new job with a different company. You don’t need to be obvious about your intent, but you should at least send your resume over to a few companies and update your resume on social media. When you get a job offer, you can decide whether you want to stay with your company or have more job security.