In today’s economy, layoffs have become a common occurrence. Companies may lay off employees for a variety of reasons, including financial struggles, changes in business direction, and mergers and acquisitions. As an employee, it can be difficult to predict when layoffs will happen. However, there are certain signs that you can look for that may indicate that layoffs are on the horizon. In this article, we’ll explore how to predict layoffs and what to do when you can smell layoffs coming.
How to predict layoffs?
Keep an eye on the company’s financials
One of the most common reasons for layoffs is financial struggles. If a company is struggling financially, it may need to reduce its workforce to cut costs. You can keep an eye on the company’s financials by looking at its quarterly and annual reports, which are publicly available. Look for indicators such as declining revenue, decreasing profits, and increasing debt.
Another indicator of financial struggles is a decrease in funding or investment. If the company has recently received less funding or investment than in previous years, it may be a sign that it is struggling financially and may need to cut costs.
Pay attention to the industry and the market
Another factor that can contribute to layoffs is changes in the industry or market. If the company’s products or services are no longer in high demand, it may need to reduce its workforce to stay competitive. Pay attention to industry news and trends to see if there are any shifts that could affect your company.
You should also pay attention to the broader market. Economic downturns can lead to layoffs across multiple industries. If you see signs of a recession or economic slowdown, it may be a sign that your company will need to reduce its workforce.
Look for changes in leadership
Changes in leadership can also be a sign of impending layoffs. If the company hires a new CEO or CFO, they may want to make changes to the organization to align with their vision. This can include reducing the workforce.
Another sign to look for is a merger or acquisition. If the company is acquired by another organization, there may be redundancies that lead to layoffs.
What to do when you can smell layoffs coming?
Update your resume and LinkedIn profile
If you suspect that layoffs are on the horizon, it’s important to be prepared. One of the first things you should do is update your resume and LinkedIn profile. Make sure that your job responsibilities and accomplishments are up to date. You should also add any new skills or certifications you have acquired since your last update.
Network with colleagues and industry professionals
Building a strong network can be invaluable if you are laid off. Reach out to colleagues and industry professionals to let them know that you are looking for new opportunities. Attend industry events and join professional organizations to expand your network.
Develop new skills
In today’s job market, it’s important to have a diverse set of skills. If you suspect that layoffs are coming, take the opportunity to develop new skills that can make you more marketable. Consider taking classes or earning certifications in areas that are in high demand.
Talk to your manager
If you suspect that layoffs are on the horizon, it’s important to talk to your manager. Ask if they have any information about the company’s plans and if your job is at risk. If your job is at risk, ask if there are any other positions within the company that you could transfer to.
Consider taking a voluntary layoff
In some cases, companies may offer voluntary layoffs as a way to reduce their workforce. If you are offered a voluntary layoff, consider whether it is a good option for you. You may be able to negotiate a better severance package or other benefits if you take a voluntary layoff.
Take care of yourself
Facing the possibility of layoffs can be stressful and anxiety-inducing. It’s important to take care of yourself both physically and emotionally during this time. Make sure to get enough sleep, exercise regularly, and eat healthy foods. Consider talking to a therapist or counselor if you are feeling overwhelmed or anxious.
Know your rights
If you are laid off, it’s important to know your rights. You may be entitled to severance pay, unemployment benefits, and other forms of compensation. Make sure to review your employment contract and any other relevant documents to understand your rights.
In conclusion, layoffs are a reality of today’s economy. While it can be difficult to predict when they will happen, there are certain signs to look for. If you suspect that layoffs are on the horizon, it’s important to be prepared. Update your resume and LinkedIn profile, network with colleagues and industry professionals, develop new skills, talk to your manager, and take care of yourself both physically and emotionally. By taking these steps, you can increase your chances of landing on your feet and finding a new opportunity if you are laid off.