Shyamli Rathore, a senior moderator at Harvard Business Publishing, writes in her Harvard Business Review article, ‘How to Emotionally Process a Layoff,’ that
As you think more, you’ll begin to understand that a layoff is rarely about your abilities and talent. More often, it’s about a company’s decision to reallocate resources or cut down costs — and they’re probably having a hard time making this decision. That said, a layoff doesn’t have to make you feel powerless and isolated. Let it become a powerful moment of self-reflection and learning.
Is everything purely due to resource relocation or cost-cutting?
Marlo Lynos highlights five interesting points in her HBR article that you should pay attention to. One of the first things workers should do is understand the financial health of your company. Here are five warning signs to watch out for.
- Hiring and expenses freeze
- Eliminating products or programs
- Change in management styles
- The company’s trends and patterns
- Payroll bloat
The more alert you are, the easier it will be to predict when to start preparing for your next move.
If you’re among those impacted by layoffs, you might question why it’s happening to you, especially when you know you bring valuable skills to the table. During this challenging time, be careful about who you spend your time with and seek support from positive and supportive people.
At this point, you should be prepared for opportunities that go beyond your typical job responsibilities. With current job market conditions, companies are in a strong position to negotiate due to recent layoffs and budget limitations concerning salary offers. As such, it’s wise to manage your expectations regarding compensation.
Unfortunately, if your company is privately owned, it’s not obligated to share financial details with the public. In this case, you’ll need to watch for other indicators of financial trouble. For instance, if you’re at a startup, keep an eye on the timing of the next funding cycle. Delays in securing funds or a failed deal with a venture capitalist (VC) could be red flags signaling potential layoffs.
Navigating layoffs can be incredibly challenging. To stay ahead, focus on staying informed about every change and communication from your company. Being alert will help you anticipate when it’s time to start planning your next steps.
