Understanding Layoffs and Hiring Freezes in IT

Wondering what goes on behind the scenes when a company decides to lay off employees? 🤔 As someone who's spent two decades in the technology industry, I've been part of those conversations and want to shed some light on what happens when the layoffs are looming. 📌 First thing to note, layoffs are typically not about you as an individual. Companies are focused on ensuring their survival in the long run. They assess departments based on cost and criticality, and these decisions are made at a senior level, often several layers above your immediate manager. 📌 Well-run layoff processes get fairly clinical. Decisions are made that ensure that the future viability of the organization is secured. It's not about your personal situation or performance. Your family size or personal circumstances don't come into play because that would be both painful and illegal. So, what can you do to tip the scales in your favor? 🤷♂️ In reality, not much. While job performance is sometimes a factor, it varies from company to company, and the specific reasoning for layoffs is usually kept under wraps. The decision rooms can be intense, with a deep awareness of the impact on different teams. The focus is on finding the right solution, and there's little room for levity. Companies often feel terrible about letting employees go, and those behind the scenes face difficult, secretive, and emotionally taxing process. When I was involved in performing a 'Reduction In Force' - a RIF, it was the worst day/week I've ever had in my professional career. When it comes to conducting layoffs, there are best practices to aim for. The ideal scenario includes a humane and swift process, generous severance packages, and a CEO who communicates clearly and compassionately about the reasons for the cuts. For the employees who remain, ongoing clarity about the future is crucial to ease the transition. In the end, regardless of how they're done, let's be honest—layoffs "suck"! If you or somebody that you know is thinking about making a career change, DM me "OPENTOWORK" and I'll share free resources to support you in securing a new opportunity. 🔽🔽🔽 👋 Hi, I'm Graham. Thanks for checking out my Post. Here is what you can do next 🔽 ➕ Follow me to see me in your feed 🔔 Hit the bell on my profile for Post notifications ♻ Inform others in your network via a Share or Repost 📅 Book an appointment to discuss your job situation. Please don't suffer in silence ❗ #career #jobs #business #technology #finance

"Your paycheck today will clear the bank. If you come in on Monday, and I hope you will, I cannot guarantee you will be paid. Our VCs say they will give us a bridge loan, but it's not in the bank yet." I gave this message to groups of startup employees three times in my career. Only a single employee, our receptionist, resigned. She said, "I love you guys, but I can make the same somewhere else with a lot less stress." Smart woman. Both startups where I said this were out of money in the hard times after the 9/11 attacks tipped the economy into recession. Venture capitalists (VCs) went into the mode they are today, not funding new companies and instead putting their money only into drip-feeding their existing companies. VCs do not have to work within the companies they fund, so they forget the human impact of being slow to provide the money. We were legally required to tell the employees that we could not pay them. Why did everyone stay and keep working? 1) Transparency. We were clear about both not having money and expecting to get it. 2) All in it together. There was no money to pay anyone, me included. So we all took the risk together. 3) Short term trust. The next paycheck was due in two weeks, so we were asking people to trust us for a brief period. They were risking two weeks of pay, which limited the downside. In each case the money did come through and the companies continued, the one of them went through this ugly cycle twice. Ultimately each company survived, though neither ever really thrived. Today, many leaders find themselves in similar tough times. Layoffs, promotion freezes, hiring freezes, project cancellations, etc. If you are a leader in such circumstances: 1) Prepare your team ahead of time. Discuss openly with people that times are tough and that the future is uncertain, but that you are doing all you can to get them through it successfully. 2) Be transparent. Both share all you can and push to be in the know so that your team is not surprised. Trust is broken when people feel misled, and at that point they start focusing on protecting themselves (as they should), not working with you to get through the crisis. 3) Focus on critical actions that can get your team through the bad times. Grand visions may have to wait. Find any way to be "too critical to lay off today." If you are an employee: 1) Build your financial cushion any way you can. 2) Update your resume and LinkedIn; touch network contacts socially to remind them you exist. 3) Get on the most critical work to the company you can. Literally worm your way onto it, by doing extra credit side work if necessary. 4) Be understanding that your direct manager may be in the dark. In big companies, first level (and even 2nd and 3rd) are not told anything about big decisions. Want to hear more? On Friday I am moderating a free panel discussion on Leading In Tough Times. Join us: https://buff.ly/4a13H0J

Over the weekend I was out for a run in my favorite park and noticed barriers across the trails and signs warning that construction was underway. As I watched a few runners blow past me, I was reminded that lots of folks ignore these signs - at their own peril. In fact, the same thing may be happening right now in your workplace. Here are some signs that "construction is underway" in your workplace, and there could be some barriers to you achieving your career goals: 🛑 There has already been a round of layoffs 🛑 Workload is repeatedly increasing without additional resources 🛑 There is an unexpected change in leadership, especially at the top of the organization 🛑 A merger is being discussed or coming down the road 🛑 There is a hiring or budget freeze 🛑 You are seeing increased turnover in general, or in your unit 🛑 Budgets for marketing and professional development are being cut 🛑 Consultants are coming in to enhance efficiency (Office Space fans out there??) Any one of these things is a sign that you would be wise to polish up your resume, update your LinkedIn profile, and reengage your network. It's tempting to engage in magical thinking and fall back on an "everything will be fine" attitude. You will definitely feel better in the short term, because the alternative is daunting. But in the long-term, it's better to open your eyes and be prepared.

 𝐖𝐞𝐥𝐜𝐨𝐦𝐞 𝐭𝐨 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐐&𝐀 𝐨𝐟 𝐓ê𝐭𝐞-à-𝐓ê𝐭𝐞 𝐓𝐮𝐞𝐬𝐝𝐚𝐲𝐬™! 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧: My company has been conducting layoffs; I’m worried. Is there anything I should be doing? 𝐀𝐧𝐬𝐰𝐞𝐫: Feeling worried about potential layoffs is normal and completely understandable, especially given the times we’re in. Here is my personal take on some of the steps you can take: 💡 𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐚𝐛𝐨𝐮𝐭 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬: Pay attention to official communication channels and what is happening around you (e.g., hiring freezes, specific department cuts, widespread layoffs). 📰 💡 𝐁𝐞 𝐩𝐫𝐨𝐚𝐜𝐭𝐢𝐯𝐞 𝐢𝐧 𝐬𝐞𝐞𝐤𝐢𝐧𝐠 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: Ask direct questions to leaders but understand that they may not always provide answers. Understand company policies around layoffs and severance eligibility. Look into the employment laws in your area, especially as they relate to layoffs. 🔍 💡 𝐊𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠: Maintain copies of performance reviews and any praise or feedback received. Store this information on non-work-issued devices as access to work devices may be restricted during layoffs. Periodically ask your manager about your standing and areas of development to ensure your performance isn't in question. 📋 💡 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐚𝐧𝐝 𝐛𝐮𝐢𝐥𝐝 𝐫𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩𝐬: Cultivate strong relationships with hiring managers, recruiters, and leaders within and outside the company. Networking can provide valuable insights and may even lead to new opportunities. 🤝🏽 💡 𝐏𝐫𝐞𝐩𝐚𝐫𝐞 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐰𝐨𝐫𝐬𝐭-𝐜𝐚𝐬𝐞 𝐬𝐜𝐞𝐧𝐚𝐫𝐢𝐨: Ensure your resume and profiles (e.g., LinkedIn) are always updated, review your financial situation, and explore options for unemployment benefits or other forms of financial assistance if needed. Additionally, remember that overall preparedness includes being aware of your skill set, marketability, and career options. 💼 💡 𝐒𝐞𝐞𝐤 𝐬𝐮𝐩𝐩𝐨𝐫𝐭: If you're feeling overwhelmed or stressed, seek support from friends, family members, or mental health professionals. Talking about your concerns can help alleviate anxiety and provide perspective. 🤗 ⚡𝐇𝐑 𝐟𝐨𝐥𝐤𝐬 𝐚𝐧𝐝 𝐨𝐭𝐡𝐞𝐫 𝐥𝐞𝐚𝐝𝐞𝐫𝐬, 𝐰𝐡𝐚𝐭 𝐰𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐚𝐝𝐝 𝐭𝐨 𝐭𝐡𝐞 𝐥𝐢𝐬𝐭? For even more insights on layoffs, check out Chapter tOO, LLC's #Gem 💎 (standalone essay) “𝐋𝐚𝐲𝐨𝐟𝐟𝐬, 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩, 𝐚𝐧𝐝 𝐋𝐞𝐚𝐫𝐧𝐢𝐧𝐠 𝐋𝐞𝐬𝐬𝐨𝐧𝐬,” here: https://lnkd.in/ejUAYiKE For a chance to have your workplace or leadership question featured and answered next week, don’t forget to dm me or comment (if you’re comfortable) with your question on this post (tag me) 𝙗𝙚𝙛𝙤𝙧𝙚 𝟓𝙥𝙢 𝙀𝙎𝙏 𝙩𝙝𝙞𝙨 𝙁𝙧𝙞𝙙𝙖𝙮 (𝙁𝙚𝙗 𝟐𝟑𝙧𝙙)! #TeteATeteTuesdays #HRInsights #LeadershipDevelopment

This may or may not resonate with some folks, but as a current job seeker who was a hiring manager just two years ago, I can offer insight into some of the behind-the-scenes happenings. I have one specific example to explain, but it still feels relevant today. My recruiter and I were looking to fill a QA Engineer role, and we'd already gone through the recruiter screen, hiring manager screen, and panel interview for one candidate that we wanted to make an offer to. She accepted our verbal offer, and it was mostly paperwork from there. It was going very well - the communication lines were open in both directions to clarify last-minute questions, the offer letter was drafted and in review, and the planets seemed aligned. Just 30 minutes before we were expected to get the offer letter approved by upper management, we got an email from the top ... an immediate hiring freeze was in effect. As the hiring manager, I didn't see it coming. My recruiter didn't see it coming. If upper management knew it was coming, they didn't tell us and faked progress on the offer letter. We were unable to follow through and had to let the candidate know that the job opening was being closed due to a hiring freeze. She moved on to another opportunity, the role disappeared from the website, and a bad taste was left in everyone's mouth. The moral of the story is this ... don't shoot the messenger, as long as the messenger is communicating. In our case, the hiring manager and the recruiter had zero advance knowledge of the impending hiring freeze, but when we did find out, we communicated it immediately. You can rant all day that the hiring manager "should have known" that the role was going to be removed, but in reality, at least at one company in Silicon Valley, he did not. The greater moral here is: communicate! #DontShootTheMessenger #hiring #hiringfreeze #communication #ghosting #2024jobhunt

10 Signs You Might Be Facing a Layoff I hope not. But how would you know? Don't get caught flat footed. Use these tactics to determine if a layoff is coming. 1. Your Boss Stops Communicating: Suddenly, your boss stops including you in critical meetings and communicates with you less frequently. 2. Reduced Responsibilities: You're reassigned to lesser essential projects, or another employee was "assigned" to help you. Watch out! 3. Company Financial Troubles: The company announces financial difficulties, such as poor quarterly results, cost-cutting measures, or hiring freezes. This is obvious, but I've seen so many people say, "We'll turn it around," only to be let go the next quarter. 4. Reorganization Announcement: Similar to poor results, news of mergers, acquisitions, or internal restructuring often precede layoffs. If your role is redundant, you are at high risk. 5. Budget Cuts: Noticeable departmental budget cuts or canceling planned projects is a huge red flag. 6. Change in Behavior: Managers or colleagues acting unusually distant or avoiding conversations about plans. Do you suddenly feel "on the outside looking in?" Do not discount your instincts! 7. Increased Performance Scrutiny: Suddenly, someone from "corporate" wants to understand your job and justification. This shows up as increased performance reviews, unrealistic expectations, or a focus on minor mistakes. 8. Industry in the Dumpster: Perhaps you're in a legacy tech sector? Broader industry trends showing downturns, such as a decline in market demand or increased competition, mean you must take action now. 9. Shift in Company Strategy: This happens during bad quarters and industry downturns. The Company is shifting focus to new products, services, or markets, leaving current roles less relevant. 10. Rumors and Speculation: There are persistent rumors or unofficial talks about layoffs within the organization. Do not ignore these rumors. The signs always show up before a layoff. I rarely run into someone who was completely blindsided. It happens, but most people "had a feeling." Take action today. I know you can. You're strong and have agency over your actions. Make a plan and execute. You got this. I love you all. ====== If you want help making a plan, let me know. DM me and let's talk.