10 Warning Signs a Layoff Is Coming (And What to Do)

Learn to recognize the early warning signs of impending layoffs. Prepare yourself before the axe falls.

Strategy January 7, 2025

10 Warning Signs a Layoff Is Coming (And What to Do)

Learn to recognize the early warning signs of impending layoffs. Prepare yourself before the axe falls.

Layoffs rarely come completely out of nowhere. Here are the warning signs to watch for - and what to do if you spot them.

The Warning Signs

1. Hiring Freeze

When companies stop hiring, it often precedes cuts. Open positions being pulled or delayed is a red flag.

2. Budget Cuts and Expense Scrutiny

Suddenly every expense needs approval. Travel budgets disappear. Perks get reduced.

3. Leadership Changes

New executives often bring "restructuring." If the CEO or your division head is replaced, changes usually follow.

4. Missed or Delayed Earnings

When a company misses revenue targets or provides weak guidance, cost-cutting (including layoffs) typically follows.

5. You're Being Left Out

Not invited to meetings you used to attend? Left off important emails? Your role may be getting phased out.

6. Your Manager Is Acting Weird

Avoiding eye contact, being distant, or unable to discuss future plans may signal they know something.

7. Reorganizations

When org charts keep changing, positions often get eliminated in the shuffle.

8. Your Projects Get Reassigned

If your work is being redistributed to others, your role may no longer be needed.

9. Industry Downturn

When your whole industry is struggling, your company isn't immune. Watch competitors for layoff announcements.

10. Layoff Rumors

Where there's smoke, there's often fire. Take whispered concerns seriously.

What to Do If You See the Signs

Immediately:

  • Update your resume and LinkedIn profile
  • Start networking, even casually
  • Document your accomplishments and save work samples
  • Backup any personal files on work computer
  • Review your employee handbook for severance policies

Financially:

  • Build up your emergency fund
  • Reduce discretionary spending
  • Delay major purchases
  • Understand your health insurance options

Strategically:

  • Have informal conversations about other internal roles
  • Make yourself more visible on high-priority projects
  • Start a low-key external job search

Don't Panic

Seeing warning signs doesn't guarantee a layoff. Use the signs as motivation to be prepared, not to stress. The best time to job search is when you have a job.

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