Navigating a Layoff: Understanding What It Is, What to Do, Whether You

In today’s ever-changing job market, layoffs have become an unfortunate reality for many professionals. A layoff can be a distressing experience, with a lot of steps and a lotquestions. This blog aims to shed light on what a layoff entails, providing guidance on how to handle the situation, how to evaluate your severance and bounce back stronger than ever.

What is a Layoff?

Unraveling the Concept

A layoff – either a planned RIF of a group of employees or a single termination – refers to the termination of positions within an organization. It is typically initiated by the employer due to various reasons, such as restructuring, financial challenges, technological advancements, or changes in the business landscape. But often it includes people the employer wants out because of discrimination or retaliation. In other words, many employers use layoffs as “cover” to get rid of older workers or workers they no longer want around.

The Lawful Layoff

Let’s focus first on a proper layoff. One that does not involve discrimination or retaliation. Unlike termination due to poor performance or misconduct, a true layoff should be unrelated to an individual’s abilities or actions. Instead, it is a strategic decision made by the company to adjust its workforce size or structure based on business needs.

During a proper layoff, employees are let go from their roles, and their employment with the company is terminated. As in almost every termination, this can be a challenging experience, both emotionally and financially, as it disrupts a person’s sense of stability and security.

It’s important to note that a layoff is different from being fired or quitting. When an employee is fired (again, focusing here on a lawful termination), it is typically due to performance issues or violation of company policies. On the other hand, quitting is a voluntary decision made by the employee to leave the organization.

Layoffs are often driven by external factors beyond an individual’s control, such as economic downturns, mergers and acquisitions, changes in market demand, or automation. Companies may resort to layoffs as a means to cut costs, streamline operations, or adapt to industry shifts – with little reflection on an employee’s skills or worth as a professional.

It is a challenging situation that many people face at some point in their careers, and there are strategies and steps to take to navigate the aftermath and move forward successfully.

The Unlawful Layoff

As mentioned, often companies include employees in layoffs for unlawful reasons. In other words, some employers use the “layoff” as an opportunity to exact revenge against an employee who has made complaints, to move out older workers and “freshen up the place,” to get rid of pregnant women and minorities, or to push out people who need medical accommodations.

The impact to a worker unlawfully included in a layoff is often worse, because those individuals typically have a much harder time finding new work.

The good news for workers unlawfully included in a layoff? They often have a much stronger position to demand more severance. Just because you’re included in a layoff does not mean you lose your rights. A layoff cannot be used to cover up wrongful termination. Employees experiencing discrimination or retaliation in the layoff context may have even better remedies available to them, because the employer has already set aside funds to deal with the matters and are focused on the problems.

Any worker who feels they have been included in a layoff for an unlawful reason should seek counsel immediately.

Signs a Layoff is Coming

Recognizing the Indicators

Here, we’ll dive into the common signs and reasons that lead to layoffs within organizations. Signs, such as declining profits, restructuring efforts, or industry changes. And reasons, including economic downturns, technological advancements, and company mergers.

• Declining Financial Performance: Companies facing financial difficulties, such as declining revenues, profit losses, or increasing debt, may resort to layoffs as a cost-cutting measure. Pay attention to public financial reports, news about the company’s financial health, or internal communications that hint at financial challenges.
• Restructuring Efforts: Organizations undergoing significant restructuring, such as mergers, acquisitions, or changes in business strategies, often reassess their workforce needs. This could result in layoffs as roles are eliminated, departments are streamlined, or duplicate positions are removed.
• Industry Changes: Technological advancements, shifts in consumer preferences, or changes in market conditions can impact specific industries. If your industry is undergoing substantial transformations, such as automation replacing manual labor or shifts towards digitalization, companies may downsize to adapt to the new landscape.
• Cost-Cutting Measures: Companies looking to trim expenses may implement various cost-cutting measures before resorting to layoffs. These measures could include freezing hiring, reducing benefits, implementing furloughs, or decreasing employee perks. If such measures persist or become more severe, it may be an indication that layoffs are likely.
• Company Communication: Pay attention to the information shared by the company’s leadership or through internal communication channels. Announcements about cost-cutting initiatives, reorganizations, or downsizing efforts could signal potential layoffs. However, it’s important to note that not all company communication may be transparent, so use your judgment and consider multiple factors.
• Reduced Workload or Project Cancellations: If you notice a significant decrease in your workload, projects being put on hold, or the cancellation of upcoming initiatives, it could be a sign that the company is experiencing challenges or considering workforce reductions.

Remember, each situation is unique, and companies may employ different strategies in response to challenges. However, by being aware of these signs and staying informed, you can better prepare yourself and explore potential backup plans in case a layoff occurs.