10 signs a company is about to lay off workers, according to a career coach

It’s one of the worst and most stressful things a person can experience: being fired from their job. Obviously, the financial crisis is the hardest part, but what amplifies the stress is the abruptness with which layoffs often occur. One day you’re living your normal working life, and the next day the rug is pulled out from under you.

It’s difficult to completely eliminate the element of surprise when it comes to job losses, but there are indeed ways to scan the horizon and guess that things may soon be heading south in your business. Knowing what to look for could give you the tools you need to prepare and perhaps undo the upheaval altogether.

Overall, layoffs have fortunately slowed in recent months. The latest data from the Department of Labor shows that layoffs have declined significantly at businesses of all sizes, from small businesses to large corporations, and there are currently more job openings than job seekers overall.

Yet even though the economic tide thankfully appears to be turning, the situation remains challenging, particularly in industries like technology, marketing, and other professional services areas. So how can you protect yourself from finding yourself on the wrong side of economic turmoil?

On one hand, there is the little-known Worker Adjustment and Retraining Act, or WARN Act, federal legislation that requires employers to notify all workers at least 60 days in advance before a round of layoffs . Elon Musk was sued for violating this law shortly after his purchase of Twitter.

If this is all new to you, you’re not alone. This 60-day notice is done through mandatory postings on state government websites, which many workers don’t even know exist. You can Google “WARN Act” and your state to find yours and be informed.

But as anyone in the workplace knows, 60 days before a round of layoffs actually begins is often quite a while away. According to experts like career coach Greg Langstaff, there are 10 things to watch for to signal that a major problem is brewing long before your spider senses — or a notice from the WARN Act, for that matter — can indicate impending disaster.

Ten signs a company is about to lay off people, according to a career coach:

1. Employees who leave are not replaced

If you notice that HR and management don’t seem to be in a hurry to fill the cubicles vacated by your colleagues, it’s probably not a coincidence. Often, this is part of an overall strategy to downsize the company, especially in the age of AI.

2. Hiring and spending freeze

This is probably a no-brainer, but many of us tend to view these measures as just harmless belt-tightening measures intended to help the company through a difficult time. And sometimes they are – but they’re also often the first salvo in a series of more drastic cost cuts that involve laying off a large portion of the workforce. Beware!

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3. Major projects postponed

Likewise, this could just be a temporary cost-cutting measure, but is more likely an early move to lower the hatches. You don’t install a swimming pool in your backyard if you know tough times are coming and your job is the same. If to-do lists are suddenly reduced, take it seriously.

4. Your business was recently acquired or is about to be acquired

This is probably the most obvious red flag of all. Even if the companies in question assure you that no one is going anywhere, still get your CV in order. Mergers and acquisitions almost never happen without layoffs, because company mergers result in many layoffs. Mergers and acquisitions also frequently trigger WARN Act notices, so Google it!

@jtodonnell HOW TO KNOW IF YOUR COMPANY IS PLANNING TO MAKE LAYOFFS I want to tell you about the WARN Act of 1988. It requires U.S. companies with more than 100 employees to provide 60 days’ notice if they plan to make layoffs. massive layoffs or closure of the site. This is a way to prevent people from being blindsided by an unexpected layoff. In this video, I explain more and encourage you to be proactive and prepare for your job search! PS – if you made it all the way to the end and want to work with me and my team on your job search, don’t forget to use the secret code TIKTOK10 to save $10 per month. We include a 7-day risk-free trial and you can cancel at any time. You can find out more here: ##layoffs ##2024 ##howto ##job ##career ##jobsearch ##jobseeker ##laidoff ♬ original sound – JT O’Donnell

5. Leaders leave

Have you ever heard that old saw about “rats leaving a sinking ship”? This also applies to your office, and the top brass are among those who get the first intel on rough seas, if you will. If leaders run for the hills, follow their lead and start thinking about your next move.

6. There have already been some layoffs

Where there are layoffs, there are often… more layoffs. And as with mergers, even if you are sure to achieve nothing, it is better to behave differently. Start distributing your CV. Even if you’re one of the lucky ones who keeps your job, it can’t hurt to cover your bases.

7. Restructuring

Companies often restructure in order to tackle newer or more lucrative areas of growth and move away from those that have become obsolete, for example a retail company abandoning physical stores and moving solely to online sales. Sometimes your work evolves into a new order of things, but too often it doesn’t. Here again, it’s better to put yourself forward, just in case.

8. Outsourcing

Another obvious problem – not only because your job could be the next to go overseas, outsourced to freelancers or abandoned in favor of AI, but because this too is often part of a plan to broader cost reduction.

9. The company does not achieve its objectives

One or two fiscal quarters of less-than-stellar earnings or growth could be just a bump in the road. But what if your business is consistently, over multiple periods, below what it should be? Well, the ship is probably taking on water, and it’s time to start thinking about escape plans before you end up going down with it.

10. You receive an invitation to an urgent company-wide meeting

At this point, the end has come. High-priority teams coming out of nowhere rarely bring good news, and if it shows up on your calendar, it’s likely that you’ve missed – or simply ignored in denial – several other signs of trouble. Once the meeting is over, start calling these connections and looking for opportunities on LinkedIn, because it’s probably only a matter of time!

John Sundholm is a news and entertainment writer who covers pop culture, social justice and human interest topics.