The Challenge of Current Market Layoffs: A Shifting Landscape

February 18, 2025

Not so long ago, I woke up to a cold, impersonal email:

“Today, we are taking the very difficult step of reducing roles across some of our businesses. Unfortunately, your role has been eliminated.”

A sense of fear, uncertainty, and frustration emerged. I was performing well, working more than 10 hours a day and delivering some notable results.

5,000 other people received the same email simultaneously. I had 60 days to find a new role, after which I would no longer be an employee. Although I did not anticipate this type of email, I recognize that there have been several changes in the job market recently.

Layoffs typically lead to financial stress, emotional effects, career disruption, and feelings of betrayal by the company, especially after the initial shock.

In today’s uncertain job market, layoffs are a growing concern, and even high performers are not immune. Having faced a similar layoff, I understand the fear and uncertainty many are feeling right now. This article explores the current layoff landscape and provides actionable steps leaders and professionals can take today to protect their careers and plan for the future.

What is happening?

In recent years, the job market has seen notable changes, with layoffs becoming more common across different sectors. This trend has impacted on individual employees and altered company dynamics and cultural practices.

In 2024, major companies like Citibank, Boeing, Intel, and Amazon announced significant layoffs, signaling a shifting economic landscape.

Cultural Shift: Then and Now

Thirty years ago, tenure equated to job security. People often worked at the same company for decades and retired with recognition for their service. Layoffs were rare and typically due to poor performance or legal issues, carrying a stigma.

Today, layoffs are common and used strategically by companies. Job security is now linked to performance and adaptability. Among friends over 40, more than half have experienced at least one layoff, which no longer carries the same shame but does alter career trajectories.

Layoffs affect people and companies

Layoffs significantly impact both employees and companies. The remaining employees often experience lower engagement, diminished trust, heightened stress, and increased workloads. While layoffs might offer short-term financial relief, the long-term consequences include the high cost of hiring replacements (up to 150% of salary), reputational damage affecting future hiring, and underperformance compared to companies that avoid layoffs.

Although it may seem unusual, research indicates that the hidden costs of layoffs frequently outweigh the short-term benefits. This suggests that companies might not be fully considering the long-term impacts in their decision-making processes.

The actions and behavior of every leader in a company implementing layoffs have a significant impact on the remaining employees. How leaders conduct themselves greatly influences the morale and sentiments of the workforce.

Are you personally at risk of being laid off?

This is not easy to predict. It depends on the company, the industry, and the market. The fact is that the market has changed, and now no one can be totally safe. Companies may use some of these methods to select people in a layoff:

Last In, First Out (LIFO – the most recent hires are laid off first): While this method is straightforward, it may result in losing valuable new talent.
Business Unit or Function Elimination: Entire departments or functions may be eliminated.
Cost-Benefit Analysis: Higher-paid employees may be at greater risk.
Performance-Based Selection: Many companies prioritize retaining top performers.

While these are general considerations, other factors may also increase your risk. Over the years, I have observed several layoffs involving individuals with good performance but facing other circumstances, such as their location or other secondary situations. For instance, are you based in an area that has a higher cost of living compared to others (e.g., Miami versus Argentina)? (Action: Explore remote work options or be open to relocation if necessary). Is your department being eclipsed by other sectors or industries within your company? (Action: Proactively seek opportunities to collaborate with and integrate into more central initiatives). Does your role generate enough revenue to justify the position relative to others? (Action: Quantify your impact by tracking key metrics and presenting your achievements to leadership). Are you situated far from the company’s main offices (e.g., regional roles or smaller countries with few employees)? (Action: Build strong relationships with key decision-makers at headquarters and highlight your contributions regularly).

What can you do?

Since the market cannot be altered, the key is to focus on factors within your control.

Always Have a Backup Plan: Evaluate your skills and experience, identifying how they can translate to other roles or even starting your own business. Research growing industries that align with your passions and proactively update your resume/CV at least quarterly.
Build Your Personal Brand: Leverage LinkedIn to showcase your expertise. Share valuable content, engage in industry discussions, and highlight your accomplishments. If your department isn’t core to the business, connect and collaborate with those in core areas to expand your visibility.
Develop a Clear Career Plan: Define your professional goals, aligning them with your values and the realities of your unique situation (location, departmental relevance, etc.). Consider whether you’re willing to relocate or pivot to a more central role.

Take control of your career today. Start developing your backup plan and building your personal brand. Your future self will thank you.

Summary:

After experiencing a layoff myself, I decided to accelerate my long-planned transition to entrepreneurship. For years, I had been preparing – engaging with friends about my future projects, taking on internal coaching roles, and earning certifications from the ICF, Patrick Lencioni, and Korn Ferry.

This experience led me to launch Power Inside Out, dedicated to helping individuals and organizations grow faster, navigate career transitions and build resilience. Don’t wait for a layoff to take control of your future!

If you’re ready to create your own career plan and navigate the changing job market, contact Power Inside Out for a consultation. (www.powerinsideout.com)