If You're Worried About Layoffs, Watch for These Common Signs
As the economy continues its downward spiral, what are the signs you're about to be laid off? Here's what to look out for and how to prepare.
If recent news of Meta and Amazon layoffs have you concerned about your own job security, you aren't alone. The drastic job cuts that started in 2022 have continued into 2023 as huge corporations look for ways to cut costs and become more efficient amid concerns of a slowing economy.
With the threat of a recession, banks in crisis mode, and high inflation eating up American’s paychecks, it’s no wonder people have been trying to figure out how to see if a layoff is coming.
We’ve compiled common signs of layoffs, so you know if your job may be on the chopping block.
What are the signs of layoffs?
While job cuts at the beginning of the year have mostly been in the tech industry, financial institutions like Goldman Sachs and Dow have recently announced plans to cut thousands of jobs too.
It seems like every day another major corporation announces mass layoffs, rattling workers from coast to coast as they anxiously wait to see if their job will be next.
Here are 10 signs you’re about to be laid off:
1. Hiring and spending freezes
If your company stops hiring new employees, eliminates a position rather than rehiring, and cuts back on spending to reduce costs, this could be a sign of layoffs.
2. Reduced workloads
If your workload has decreased, tasks are being reassigned, and new projects are being put off for later, it may mean budgets are shrinking.
3. Company merger or acquisition
When two companies combine their strengths and profitability, duplicate roles are eliminated.
4. Outside consultants are hired
If outside consultants are brought in to review company performance and assess potential restructuring, it’s a bad sign.
5. Previous layoffs
Just because you survived the first round doesn’t mean you’re safe. If a company continues laying off employees, it means it isn't financially stable.
6. Outsourced labor
If you’re suddenly seeing an influx of contractors and freelancers, this may be an effort to get more work done for less.
7. Company struggles
If your company is consistently losing clients, facing financial issues, or dealing with a public scandal, layoffs might be on the horizon.
8. Company restructuring
While companies may take a step back and reorganize, sometimes it’s a way to see if they can remove unnecessary jobs.
9. WARN notices are posted
Be on the lookout for a Worker Adjustment and Retraining Notification Act, which is usually posted in the workplace before closures and layoffs. Employees who receive 60 days notice of layoffs may seek damages and back pay from their employers.
10. Executives are leaving
If high-level executives are exiting the company, it may signal a downturn in the finances and they may leave before it collapses.