Navigating the Great Layoffs: Safeguarding Your Career in 2024
“Shield your career with the armor of knowledge; continuous learning is the best defense against the arrows of layoffs.”
After the events of The Great Resignation in 2021 and the Quiet Quitting in 2022, it seems like 2023 became known as The Great Layoffs year. Nowadays, it’s hard to go through the news without seeing layoff notices. Getting fired can be a scary experience, making workers and their families feel stressed and anxious about losing their jobs and financial stability. Before companies announced layoffs, big firms like Meta, Salesforce, Amazon, and Google discussed firing underperformers, making it even tougher for those without jobs.
Understand Layoff
Let’s first untangle this emotional knot. A layoff is the involuntary termination of an employee’s employment, often due to restructuring, downsizing, or economic factors. It can be sudden, leaving you financially vulnerable and emotionally shaken.
The Great Layoffs of The Year 2023
In 2023, many major global businesses let go of thousands of workers all at once because of slow spending, high interest rates, and the effects of inflation. Here are some of the biggest layoffs in 2023, ranked by the approximate number of jobs cut:
- Meta: The parent company of Facebook, Meta, laid off around 11,000 employees in November 2022, which accounted for around 13% of its workforce. In April 2023, Meta carried out another wave of layoffs, which could result in as many as 4,000 technical roles being cut across Facebook, WhatsApp, Instagram, and Reality Labs.
- Amazon: In January 2023, Amazon announced that it would lay off 18,000 workers, or 5% of its corporate staff
- Microsoft: In January 2023, Microsoft announced that it would lay off 10,000 workers, which constituted about 5% of its total workforce.
- Google: Google’s parent company, Alphabet, said it would be laying off 12,000 employees, or around 6% of its workforce.
- Salesforce: Salesforce laid off about 10% of its workforce, approximately 8,000 employees.
Other notable layoffs:
- Twitter: 10% of workforce (around 750 employees)
- Twilio: 17% of workforce (around 500 employees)
- Zoom: 15% of workforce (around 1,300 employees)
- Disney: 3% of workforce (around 2,800 employees)
- Lucid Group: 18% of workforce (around 700 employees)
- Talkdesk: 20% of workforce (around 400 employees)
- Qualtrics: 14% of workforce (around 400 employees)
- Washington Post: 9% of workforce (around 120 employees)
The tech industry saw the most significant layoffs in 2023, with companies like Amazon, Alphabet, and Microsoft cutting thousands of jobs. Other sectors like retail, media, and telecommunications also experienced layoffs, although on a smaller scale. The economic slowdown and global geopolitical tensions contributed to the increase in layoffs in 2023. Please note that the numbers presented here are approximate and may vary depending on the source. Additionally, this list is not exhaustive and only includes some of the most prominent layoffs of the year.
Tech companies, including startups, around the world fired more than 425,000 employees in 2022 and 2023, with more than 36,000 employees being sacked in India in the same time frame. Source: The Economic Times
Layoffs Continue in 2024
“According to Layoffs.fyi, a layoff-tracking website, 107 tech companies have laid off more than 29,375 employees so far in 2024 “
The Layoff trends seem to be continuing in the year 2024. Here are the companies that have announced layoffs in 2024 so far:
- iRobot: iRobot to lay off 350 employees after Amazon terminates acquisition deal
- TikTok: TikTok is laying off dozens of workers in its advertising and sales unit.
- Riot Games: Tencent Holdings’ Riot Games plans to lay off 530 employees.
- eBay: eBay Inc will cut about 1,000 roles, or an estimated 9% of its current workforce
- Google: Google CEO Sundar Pichai warns of more layoffs in 2024.
- Twitch: Amazon’s streaming unit Twitch is set to cut 35% of its staff, or about 500 workers.
- Indian startups like Swiggy, FlipKArt, Cult.fit and Paytm also announced Layoffs for 2024
You’re one of the lucky ones if you haven’t been impacted, but don’t worry; this layoff monster won’t be able to harm you if you’ve sharpened your weapons (i.e., skilled up) — your knowledge in your area of expertise. Let’s try to understand the main factors behind the layoffs and how we can prepare ourselves to avoid being affected by such situations. The economic uncertainties and industry shifts cast a shadow over the job market, leaving many professionals wondering: how can I safeguard my career?.
The Causes of Massive Layoffs in 2023-2024?
Massive layoffs in 2023 and 2024 happened for various reasons, affecting different types of employees. While this trend may seem sudden, several complex factors fuel this phenomenon:
- Economic Slowdown: A looming recession and global instability have led companies to tighten their belts, resorting to layoffs as a cost-cutting measure.
- Tech Disruption: Rapid technological advancements are automating tasks and transforming entire industries, making certain skillsets obsolete and necessitating workforce adjustments.
- Geopolitical Tensions: Global conflicts and disruptions to supply chains create economic uncertainty, impacting investment and hiring decisions.
- Overhiring During Boom Periods: Many companies, anticipating continued growth, aggressively hired during the pandemic. As economic realities shifted, correcting for that overstaffing resulted in layoffs.
- Shifting Consumer Preferences: Changing consumer habits and preferences can force companies to restructure their operations, impacting specific employee roles.
While these macro-economic trends play a significant role, layoffs often impact individuals based on specific factors:
- Skill Mismatch: Employees whose skillsets no longer align with current industry needs become more vulnerable to layoffs. Continuous upskilling is crucial to stay relevant.
- Performance: Unfortunately, underperformers are often the first to be let go. Consistently improving skills and exceeding expectations can safeguard your position.
- Adaptability: As industries evolve, the ability to learn new skills and adapt to changing environments is key to securing your position. Being a lifelong learner is crucial.
- Redundancy: When roles become redundant due to automation or restructuring, some employees may be affected regardless of their performance. Diversifying your skillset can mitigate this risk.
Strategies for Safeguarding Your Career
In the dynamic landscape of the professional world, developing strategies to safeguard your career from layoffs is of paramount importance. By actively working on strategic measures, individuals can enhance their job security. Hence, It’s important to be proactive and take steps to safeguard your career from layoffs. Learning life skills like understanding money (Financial Literacy), being adaptable, and building a network can help you prepare for tough times, like a layoff. Here are some strategies that can help:
Strategies to Prepare for Layoffs
1. Upskilling for Resilience
- Keep yourself updated on the latest news and trends in your industry. This will help you anticipate any potential changes and prepare accordingly.
- Invest time in acquiring new skills and certifications.
- Stay ahead of the curve by continuously updating your knowledge base.
2. Networking for Support and Opportunities
- Cultivate a strong professional network both within and outside your current organization.
- Attend industry events, webinars, and connect on professional platforms.
- Leverage your network for support, advice, and potential job opportunities.
3. Diversifying Your Skill Set
- Identify complementary skills that enhance your core expertise.
- Embrace cross-functional training to become a versatile professional.
- Diversify your skill set to make yourself valuable across various roles.
4. Financial Preparedness
- Build and maintain an emergency fund to cover living expenses during unemployment.
- Evaluate your budget and identify areas for potential cost-cutting.
- Explore investment opportunities for long-term financial stability.
5. Proactive Career Planning
- Regularly assess your career goals and adjust them based on industry trends. Learn about goal setting theory to help yourself setting the effective carrier goals.
- Have a backup plan for career transitions or changes in the job market.
- Consider freelance or part-time opportunities to supplement income.
Coping Strategies Post-Layoff
If you do face a layoff, remember:
- Stay Calm: Panic won’t get you anywhere. Take some time to process the situation and collect your thoughts..
- Immediate Action: Begin the job search promptly and explore freelancing or part-time opportunities.
- Evaluate your finances: Assess your immediate needs and create a budget to manage your resources.
- Reach out to your network: Leverage professional connections for job referrals and support.
- Stay positive and proactive: It’s a jobseeker’s market out there. Avoid overthinking during layoffs by focusing on actionable steps. Learn how to stop overthinking.
Conduct and Practice Layoff Mock Drills
It might sound strange and funny, but hardly anyone thinks about conducting mock drills for challenging situations like layoffs. This oversight leads to panic, depression, and negativity when these difficulties suddenly arise. Remember, life’s tough situations, such as layoffs, don’t give warnings; they just happen. So, besides having predefined strategies to cope, it’s crucial to practice them through mock drills periodically. Think of it like fire drills – practicing for the unexpected ensures better preparation for sudden challenges. Now, you might wonder how to mock drill layoffs?. Well, it involves limiting your financial expenses, reviewing your resume for gaps compared to market demand, cutting unnecessary expenses, conducting mock interviews with friends, and taking online tests to evaluate your skills, among other practical exercises.
Conclusion
The topic of layoffs is sensitive yet crucial to understand. Many people fear discussing it, but my dear friend, closing your eyes won’t make the situation disappear. This article aims to raise awareness about the current job market and its risks, offering strategies to stay informed and prepared for any challenging situations. It’s like a passing storm; it’s temporary and will eventually pass. Amidst ongoing layoffs in 2024, individuals can take control of their careers with proactive strategies. Upskilling, networking, diversifying skills, financial readiness, and proactive career planning are essential to navigate job market uncertainties successfully. Embracing these strategies not only minimizes the impact of layoffs but also positions professionals for future career growth and resilience in the face of change.
Disclaimer: The layoff count mentioned in this article is based on publicly available data, and the actual real-time count may differ. Additionally, the strategies suggested in this article are for awareness purposes; individual cases may vary.
