How to Tell If You're About to Be Laid Off: Top 5 Signs You May Be Handed a Pink Slip

I'm no stranger to layoffs. During the great tech/telecom bust that began in the year 2000, I was devastated when I lost my coveted technical writing job at a midsize telecom startup just outside Washington, D.C. But during that unfortunate experience, I saw numerous signs that the company was about to announce massive job cuts. I hope and pray that never happens to you - but this article is intended to give you some potential warning signs so you can prepare early and hopefully land another job before you're escorted out the door by security. So without further adieu, here are the Top 5 signs the dreaded pink slip may be in your future:

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Your resume
• Your documented work experience
• Your work samples or portfolio
• Personal contact information of your close coworkers (for job references, networking, and venting/talking through the challenges of being laid off)
• A modicum of optimism despite the poor circumstances (just to stay sane)
• A Linkedin.com account (business networking)

1. Your Company Holds Back on Essentials. If your company begins cutting perks such as going from that fully automatic coffeemaker to a cheap $12 carafe drip unit, it’s not a good sign. If they cut out coffee altogether, it’s a very bad sign. Also look out if the company begins to prevent its employees from ordering any more office supplies, or if they deny your requests to upgrade your computer and peripheral equipment.

2. Your Company's Stock Value Takes a Nose Dive. While not necessarily a major sign of layoffs in all cases, what a precipitous drop in stock price means is that shareholders are losing confidence in the company and are selling. They are betting the company’s products and/or services aren’t viable for the long term, and thus the stock price is overvalued. Bottom line - profitability will take a hit and there’s not as much money to pay employees salaries and benefits. During the "irrational exuberance" of the tech bust in 2000, stock prices for the infamous dot.com startups came down just as hard as they went up and many were forced to go out of business altogether. If you see your company's stock go from $80/share to $4/share, I'd start looking into updating your resume.

3. You Hear of Layoff Rumors and People Around You Begin Disappearing. Suddenly you notice that it’s been pretty quiet lately. Is everyone suddenly on vacation? Maybe - or maybe they got wind of potential layoffs and found a job elsewhere. If rumors that the company is considering layoffs abound in a tough economy, employees will generally start looking for work elsewhere and you’ll likely hear about it around the water cooler. In my experience being laid off in 2001, my floor was pretty empty and very quiet. It didn't help that the company had been through two rounds of layoffs prior, and just before my turn came around, rumors were rampant despite our vice president claiming our jobs were absolutely safe and the rumors were nonsense.

4. Upper Management Suddenly Begins Massive "Company-Is-Doing-Better-Than-Ever-So-Buy-Our-Stock" Campaign. One of the most interesting outcomes of the tech bubble burst that started in the year 2000 was talk of CEOs telling employees and investors to buy company stock because the company was still on a spectacular rise to new heights, all the while selling their own stake in the company because they knew the ship was going down. The infamous Enron was a shining example: the company higher-ups ran away with all the cash while employees and stockholders were left holding the bag. If your boss or CEO starts a massive campaign talking up the company when everyone knows the situation is more dire than he or she is letting on, it could very well be a sign of impending layoffs.

5. Boredom Sets In As You Are Given Less Work. Last but not least, this sign is probably the most obvious one that your position may soon be eliminated. If your boss knows you will be laid off soon, he or she will curtail your workload. Worse, your boss has been laid off or has otherwise found a position at another firm, and your company doesn’t replace him or her. If your workload takes a sudden nosedive, you might want to make the best of your boredom by seeking work elsewhere.

Tips & Warnings

• Remember that each of these individual signs doesn't necessarily mean you're about to get laid off. But taken collectively along with layoff rumors, if you see all the signs happening at the same time, it probably spells trouble.
• The moment you hear layoff rumors, whether it's true or not begin updating your resume and asking trusted coworkers for their personal contact information. If layoffs do occur, you'll want to keep in touch for job networking and issues related to the layoff.
• If the unthinkable happens and you indeed find yourself laid off, try to stay as optimistic as possible. Bad times don't last forever, and you'll be back in the saddle before you know it.
• If you find another position, don't burn your bridges and tell the boss off and everyone else how lame they are. You'll need references and contacts for future positions and to expand your professional network. Remain tactful even if you have to bite your lip a little.

Resources

• Linkedin.com Business Networking
• Monster.com Job Search
• Dice.com Tech Job Search
• U.S. Government Jobs
• CareerBuilder Job Search
• The Layoff Survival Guide
• TechCrunch Layoff Tracker
• WorkTree.com: Tips You MUST Know To Survive A Layoff

[JesaLynn]

on 11/28/2008 These are all very tried and true signs of an oncoming layoff. I like that you pointed out that when it really starts looking dire they should begin seeing other employment. I think not telling your boss off (even if they deserve it) it might damage your chances of being asked back if the company bounces back, not to mention it could cost you what would have been a good reference for your next job. Great article. 5!