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Preparing for a Layoff in Today's Economy: What to Do Before You Lose Your Job

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As employers downsize and slash budgets, fear of layoffs is escalating. Tharon Green/CNET

Workers are facing a challenging economy and a tough job market as companies pull back on investment and trim budgets. Nearly half (46%) of US employees are anxious about layoffs in the next year, according to a survey by Indeed.

The Trump administration's cuts across federal agencies, health organizations and nonprofits have led to hundreds of thousands of layoffs. Mass reductions in force are also happening across the tech industry, media and education. The number of people filing for jobless benefits is rising, with tariffs expected to spike costs and increase unemployment.

"We are living in a time of pretty radical uncertainty," said Lisa Countryman-Quiroz, CEO of JVS Bay Area, a career-training nonprofit in California.

As businesses reduce personnel and freeze plans to hire new workers, job seekers are spending months, even years, looking for new employment. ZipRecruiter's Career Expert Sam DeMase said that preparing for a job loss while you're actively employed helps you avoid having to scramble during a crisis. "Being proactive can really help give you some peace of mind if a layoff does happen," DeMase said.

Read more: Why Can't I Get a Job Right Now? 9 Expert Tips to Stand Out to Recruiters

Think you'll be laid off? Here are some red flags

While there aren't always clear indicators of pending layoffs, there are some clues to look out for, according to DeMase.

👀 Does your position generate revenue? Nonrevenue-generating roles within an organization might be crucial for overall functioning, yet these positions (HR, IT, legal and administration) tend to be more vulnerable since they don't directly produce business income.

👀 Has there been organizational restructuring? Leadership changes and reorganizations often signal an effort to improve performance or address financial difficulties. Merging, streamlining or employee buyouts could indicate a company is cutting costs or downsizing.

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