In the past two decades, we’ve dealt with a recession, a pandemic, and long strings of subsequent layoffs.
But even though the world shut down in 2020, many industries (especially the tech industry) reported record revenues and witnessed a spike in stock prices. While many industries were laying off workers, others couldn’t staff openings fast enough.
Now, thanks to inflation, a war, and global instability, many companies are once again laying off workers and implementing hiring freezes.
If you’re worried your job is on the line, we’ve got some tips for dealing with layoffs for both workers and job searchers.
Which industries are laying off workers?
Worried about dealing with layoffs? Right now, the industries taking the biggest hits are the tech industry or any industry that is tech-adjacent.
Pandemic startups that experienced meteoric rises are now experiencing slumps, partially thanks to many Americans returning to pre-pandemic ways of life. While we probably won’t see food delivery or ghost kitchen services go away entirely, the need for these services isn’t as great as it was in 2020 or 2021.
Tech companies are the ones feeling a major hit, though. Even though these companies reported record-breaking rises in revenue and stock prices in 2020 and 2021, they’re now witnessing a dramatic dip in stock prices.
For example, Facebook’s parent company, Meta, reported annual revenue of $70,697 million in 2019, $85,965 in 2020, and a whopping $117,929 in 2021. But Meta’s stock recently dropped more than 25% in February 2022 and then again by another 5% in April.
Tech & Tech-Adjacent Company Layoffs
Some of the biggest companies that have already started laying off employees or announced impending layoffs or staffing freezes include:
Wait, what about the Great Resignation?
It’s hard to imagine that companies are now laying off workers in droves — especially since all we’ve been hearing recently is that businesses are massively understaffed.
So what’s the deal?
The Washington Post reported the reasons behind tech layoffs include, “Skyrocketing inflation, rising interest rates, a war in Europe and uncertainty in China.’
‘The collapse has affected even the most dependable bulwarks. Apple, despite record revenue, went from being worth $3 trillion in January to $2.5 trillion Monday. Microsoft, Amazon, Tesla and Alphabet have all lost more than 20 percent of their value this year. Netflix has lost 70 percent.”
What does this mean for job searchers?
Worried about dealing with layoffs as a job searcher? In addition to layoffs, many companies are implementing hiring freezes. Some companies, like Facebook, have instated hiring freezes, suggesting layoffs are imminent.
Companies laying off workers also means that they won’t be hiring new employees anytime soon.
You make need to work even harder to stand out when applying for a job.
Dealing With Layoffs: Tips for Workers and Job Searchers
One lesson we learned from the pandemic was how not to lay off workers. We watched in horror as company after the company made the major faux pas of mass layoffs via Zoom and other layoff missteps.
If you’re worried your company is considering laying off workers or if you’re currently searching for a job (especially in the tech and startup industries), check out the Rise Hire List.
The desire to spiral seems practically imminent when jobs are on the chopping block. But the worst thing you can do right now is panic.
Instead of getting worked up into a tight ball of worry, acknowledge your feelings. Take some time to grieve the possibility of losing your job or of realizing your job search might be a little more difficult than you thought.
Losing a job can elicit similar pain to a death in the family. It’s okay to take some time and grieve that loss or potential loss.
Plus, if you panic, you’re more likely to make a mistake or do something on the job or during an interview that could turn into a self-fulfilling prophecy.
Make a Plan
One effective way to deal with the uncertainty of layoffs or job freezes is to make a plan. Don’t know how to do that? Start with WOOP: wish, outcome, obstacle, plan.
Let’s say your wish is to keep your job or find a new one. What are the possible outcomes? What are the obstacles you’re likely to face? What will you do to overcome those obstacles?
It’s okay to consider worst-case scenarios; in fact, planning for the worst can actually be extremely effective!
While the fantasy of worst-case scenarios may look like rock-bottom in your mind, the reality could sting a little less than you expected. Find out if you’re eligible for unemployment or if your company offers severance packages.
Have you been considering a career change? Maybe now is the time to start thinking more seriously about one.
Getting Help After a Layoff
If you’re worried about an impending layoff or if you’re concerned you’ll be suffering from job search burnout because of job freezes, you don’t have to go it alone.
Join Rise to get help with the job search process — from start to finish. Connect with a network of companies searching for new hires just like you, and meet others in your industry who’ve been where you’re standing today.