Tech layoffs have dominated recent news headlines, leaving many employees anxious about their job security and wondering, “Will I be affected by the next round of cuts?”
In 2024, more than 150,000 employees were laid off at more than 500 tech companies, according to data from layoffs.fyi. While this number is significantly down from over 260,000 layoffs in 2023, it still underscores ongoing uncertainty within the tech industry.
If you’re worried that your company may be hit next, keep reading. In this article, I share:
- 8 signs you may be facing a tech layoff
- The most common times of year for tech layoffs
- Effective strategies to prevent being laid off
Signs You May Be Facing A Tech Layoff
For starters, how can you tell if layoffs are on the horizon? Here are 8 signs that indicate your company might be preparing for workforce reductions:
1. Hiring is frozen.
One of the first indicators of potential layoffs is a hiring freeze. Tech companies often pause hiring and refrain from replacing staff who leave as a cost-saving measure before layoffs occur.
2. Cost-saving initiatives are implemented.
The introduction of cost-saving initiatives can also signal impending layoffs. These measures may include scrutinizing or halting vendor contracts, cutting employee perks, and reducing or skipping quarterly or annual bonuses.
Additionally, many companies explore offshoring options to reduce costs further.
3. New projects are delayed or canceled.
When previously prioritized projects are delayed or completely halted, it can indicate potential layoffs. Often, most initiatives that aren’t absolutely essential for the business are put on hold leading up to workforce reductions.
4. Restructuring occurs.
Restructuring often precedes layoffs. Many tech companies reorganize to reduce middle management and other positions in anticipation of or during layoffs.
5. Company performance has declined.
A decline in company performance can be a strong indicator that layoffs are imminent. Unfortunately, many tech companies resort to laying off employees during tough times, viewing payroll as a quick way to cut costs, with plans to rehire when conditions improve.
6. Previous layoffs have occurred.
If layoffs have already taken place, it may suggest that more are on the way. While some companies try to make all their cuts at once, it is not uncommon for tech firms to implement multiple rounds of layoffs within the same year.
Therefore, you’re not necessarily safe if your company has already conducted a reduction in force (RIF) earlier in the year.
7. A merger or acquisition is announced.
When a merger or acquisition is announced, layoffs are often forthcoming. Although this is not always the case, employees are frequently eliminated to remove redundancies when companies are acquired or merged.
8. Leaders are exiting.
Finally, if multiple senior executives have left the company in a short span of time, it could signal forthcoming layoffs. Although there can be various reasons for swift departures among C-suite leaders, this trend often indicates that layoffs may be imminent.
In What Months Do Most Tech Layoffs Occur?
Layoffs can happen at any time, but some months historically see more layoffs than others.
According to layoffs.fyi, the months with the highest number of tech employees laid off in 2024 were:
- January: 34,137 employees
- August: 25,944 employees
- April: 22,423 employees
Since the onset of the Covid pandemic, the quarters with the most tech layoffs have been:
- Q1 2023: 167,574 employees
- Q4 2022: 84,894 employees
- Q2 2020: 60,141 employees
The wave of tech layoffs has persisted, affecting hundreds of thousands of employees over the past few years.
What Tech Companies Had The Most Layoffs?
According to layoffs.fyi, the companies with the most significant layoffs (in a single instance) since the beginning of the Covid pandemic are as follows:
- Intel: 15,000 employees (15% of the workforce) on Aug. 1, 2024
- Tesla: 14,000 employees (10% of the workforce) on April 15, 2024
- Google: 12,000 employees (6% of the workforce) on Jan. 20, 2023
- Meta: 11,000 employees (13% of the workforce) on Nov. 9, 2022
While these big tech giants top the list, many startups and mid-sized companies have also experienced significant layoffs.
What Positions In Tech Get Laid Off The Most?
Some of the positions most prone to layoffs at tech companies include:
- Software engineers
- Human resources and recruiting
- Marketing
- Sales
- Program management
It’s important to note that the specific positions laid off will depend on the company and its business goals.
Do New Hires Get Laid Off First?
The principle of “last in, first out” isn’t always applicable, especially at larger tech companies.
In recent years, newer hires have often been safer from layoffs, as companies have been more cautious about overhiring.
More frequently, layoffs are based on job type, location, and other factors beyond the recency of hire.
Why Do High Performers Get Laid Off?
Often, layoffs are not based on performance. Instead, they may affect specific functions, entire departments, or regions, rather than being tied to an individual’s record.
Unfortunately, being a high performer doesn’t always protect you from the possibility of being laid off.
How To Prevent Being Laid Off
While you can’t always prevent a layoff, there are strategies you can deploy to decrease the likelihood that you’ll be impacted.
Check in regularly with your manager.
Maintain consistent communication with your manager. For starters, you might get advance notice if a restructuring is coming. Additionally, they need to understand your contributions, especially when you’re working remotely.
Regular check-ins allow you to:
- Align your work with changing company priorities
- Highlight your recent accomplishments
- Address any concerns or challenges quickly
[Read: How To Stop Selling Yourself Short In Your Career]
Communicate your value to the business.
This isn’t the time to “let your work speak for itself.” You want to proactively help your manager understand:
- What you do on a day-to-day basis
- How your work contributes to the team and company goals
- Quantifiable results from your projects and initiatives
- The potential impact if your role were eliminated
Consider documenting your accomplishments and sharing them with your manager so that they can easily communicate your value to their leadership.
Remain positive.
You must stay positive and professional, even if cuts have already happened or team morale is down. Yes, I realize this is easier said than done, but it’s important, as you don’t want to give your manager any additional reasons to consider you for layoffs.
Here are ways to maintain a positive attitude and reduce your chances of being impacted:
- Focus solely on what’s in your control
- Look for opportunities to take on new responsibilities
- Avoid engaging in negative gossip and complaining
Stay prepared.
You always want to have your career materials ready, just in case a layoff comes. You can start here:
- Update your resume
- Optimize your LinkedIn profile
- Maintain an active professional network, both inside and outside your company
- Keep your interview talking points and stories ready
Final Thoughts
Keep in mind that while these strategies can help, there’s no guaranteed way to prevent being laid off. The best approach is to consistently deliver value, stay visible and active, and always be prepared for an unexpected career change.
Please remember that layoffs aren’t personal and are rarely based on individual performance.
If you’ve been impacted by a layoff or want to prepare for such a possibility, please feel free to reach out or schedule a consultation. I’m here for you! You’ve got this!
