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Is your company on the verge of downsizing? Here are some key warning signs to look out for.
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We’re starting off 2023 with the U.S. economy in a pretty strong place. The jobless rate is low, and despite a string of tech layoffs during the latter part of 2022, companies still seem to be hiring.
But things could change in the course of 2023, especially if a recession ends up striking. And so it’s important to recognize the warning signs of layoffs coming to your company. Here are four to look out for.
1. Your employer is clawing back benefits
It’s common for companies to offer different perks, from health insurance to paid time off to retirement plan contributions. But if you’ve noticed that your benefits seem to be getting stingier, or if some — like free coffee and snacks — are disappearing completely, it could be because your company is desperate to save money. And if it’s reached that point, layoffs could be next.
2. Your employer won’t approve business travel
If you normally travel for work once a quarter and your company doesn’t seem to want to approve your next scheduled trip, it could be a sign that layoffs are on the way. Often, cutting back on spending is an indication that a company is struggling financially.
3. Your company is implementing a hiring freeze
A hiring freeze is not the same thing as a round of layoffs. In the latter scenario, existing employees are let go. In the former scenario, new employees simply aren’t brought on board for a period of time. But still, if your company normally hires regularly and it suddenly puts the brakes on that practice, it could be a sign that money has gotten tight. And in that case, your employer might seek to further cut costs by trimming its existing headcount.
4. Your boss won’t approve new projects
If you’re used to taking on new initiatives at work and you’re suddenly barred from doing so, it could be a sign of trouble. After all, why would your manager want to approve a new project if they know that half of the people working on it may not have a job in a month or two?
Take action, but don’t panic
If you have reason to believe your company might soon implement layoffs, try not to stress about it too much. After all, these signs aren’t guaranteed to translate to layoffs. And even if your company decides to downsize its staff, that doesn’t mean you’ll end up on the chopping block.
At the same time, it’s a good idea to act on the signs above. First, boost your savings account balance. That way, if you lose your job, you’ll have more cash reserves to fall back on while you seek out a new role.
Next, update your resume and start networking. You don’t have to start applying for jobs if you’re happy where you are. But it wouldn’t hurt to make yourself more visible and establish more relationships within your industry in case you end up needing to call in a favor.
Finally, assess your job skills and try to boost the ones that could use a lift. Being great at what you do won’t automatically prevent you from being laid off if your company needs to cut costs. But your employer might have a much harder time cutting ties once it sees how much value you bring to the table.
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