Written by Pat Brwon, MBA
Losing a job can feel like it comes out of nowhere, but often, there are warning signs before a layoff happens. If you notice multiple red flags, it may be time to prepare financially and explore new job opportunities. Here are some key indicators that you might be at risk of being laid off:
1. Declining Company Performance
- Have you noticed budget cuts, declining sales, or reduced profits?
- Is your company losing major clients or struggling with competition?
- Are there multiple hiring freezes or sudden cost-cutting measures?
If your company isn’t doing well financially, they may be looking for ways to reduce expenses—including layoffs.
2. Mergers, Acquisitions, or Restructuring
- Is your company merging with or being acquired by another company?
- Have you heard about department consolidations or leadership changes?
- Are teams being reorganized or roles being redefined?
Mergers and restructuring often lead to redundancies, meaning some employees will no longer be needed.
3. Fewer Projects or Responsibilities
- Has your workload suddenly decreased?
- Are you being left out of important meetings?
- Have your responsibilities been reassigned to other employees?
If your role seems to be shrinking, your position may be on the chopping block.
4. Sudden Management Changes or Silence
- Have senior leaders or managers abruptly resigned or been let go?
- Are management communications vague or overly optimistic despite clear challenges?
- Has your boss started avoiding you or other employees?
When executives start leaving or communication becomes unclear, it may signal trouble ahead.
5. HR and Finance Red Flags
- Have you noticed a freeze on raises, promotions, or bonuses?
- Are company expenses being cut in unusual ways (fewer office supplies, canceled events, etc.)?
- Has HR suddenly become more visible or secretive?
Tighter financial controls and sudden HR activity can be signs of upcoming layoffs.
6. Industry Trends & Economic Downturns
- Is your industry experiencing mass layoffs at other companies?
- Are automation, AI, or outsourcing affecting jobs like yours?
- Has there been a slowdown in hiring across your field?
If your industry is struggling, your job security might be at risk.
7. Unusual Performance Reviews or Increased Micromanagement
- Are you suddenly receiving negative feedback after years of positive reviews?
- Is management documenting more of your work mistakes?
- Have you been placed on a Performance Improvement Plan (PIP)?
Sometimes, companies use performance reviews to justify letting employees go.
What to Do If You Think You’re About to Be Laid Off
If you see multiple warning signs, it’s time to prepare for the worst while hoping for the best:
✅ Update Your Resume & LinkedIn – Start networking and exploring new opportunities.
✅ Save Cash & Reduce Expenses – Build an emergency fund and cut unnecessary spending.
✅ Check Your Benefits – Look into severance packages, unemployment benefits, and health insurance options.
✅ Meet with a Financial Advisor – Plan for your financial security in case of a job loss.
✅ Stay Professional – Even if you suspect a layoff, keep doing your best work.
Stay Ahead of Layoffs – Take Control of Your Future
If you think you might be laid off, now is the time to take action. Don’t wait until it’s too late—start planning today!
