The U.S. economy is generally in pretty good shape. Despite that, some companies may be looking to reduce their staff in the coming months for different reasons. And it’s important to recognize the signs that they may be coming, so you know to prepare. If these signs apply to your place of work, a round of layoffs may be right around the corner.
1. Projects are suddenly being paused
If your company enthusiastically introduced new projects at the start of the year that are suddenly being paused for no specific reason, management might be trying to conserve cash. That could mean that layoffs are next.
That said, if specific projects are being paused for a reason, there may not be a need to panic. But when there’s a big disruption without explanation, you need to be on alert.
2. Business travel is being put on hold
Some companies regularly send employees on business trips or to conferences. If that’s been the practice at your place of work, but suddenly your employer is refusing to spend any money on business travel, perhaps it’s trying to cut spending due to financial issues. Those same financial issues could lead to layoffs.
However, keep in mind that some companies are making less room for travel in their budgets these days given how easy it’s become to conduct remote meetings. So if your company has been paying for less travel since the pandemic, that’s different from a sudden hold on business trips.
3. Small perks are going away
Maybe your company break room is usually well-stocked with granola bars and sports drinks. Or maybe your company usually springs for a team lunch once a month as a thank you for a job well done.
If small perks like these are suddenly disappearing, it could once again be a sign that your company needs to trim its spending. And that could mean layoffs are coming.
Preparing for a layoff
There may not be much you can do to save your job if your company is gearing up for layoffs (though boosting your skills and generally having a good attitude can help). But there are some steps you can take to prepare.
1. Boost your emergency savings
Nearly 1 in 3 Americans have layoff anxiety in 2024, according to a survey by Clarify Capital. Making matters worse, only 54% have enough money in a savings account to cover three months of expenses. And 18% of Americans say they have no emergency savings at all.
In the coming weeks, do what you can to cut back on spending. It’s hard to temporarily give up the things you love, but you’ll appreciate having extra money in the bank if your job goes away.
It’s best to aim for a three-month emergency fund so you can cover your essential bills for 90 days in the absence of a paycheck. But if you’re among the 18% of people who are starting with nothing, save any amount you can.
2. Pick up a side job
A side hustle could really bail you out in the event of a layoff, since it’ll be another source of income. Set yourself up with side income now in case you need to ramp up upon getting laid off. There are many gigs you can choose from, but you may want to stick to a side job that’s as flexible as possible.
Even if you have reason to believe that layoffs are coming, that may not happen for weeks or months. You don’t want to compromise your main job sooner than necessary. So you may want to aim for a side gig you can fit into your schedule pretty seamlessly, like doing data entry from home or driving for a ride-hailing company.
3. Start networking immediately
If you’re worried that layoffs are coming to your company, the time to start getting in touch with your professional network is now. See which contacts of yours have open jobs at their companies, and ask the people you trust to keep you in mind in case opportunities arise.
Along these lines, make sure your resume is current. Sometimes, when jobs become available, you need to pounce right away. You don’t want to get held up by an out-of-date resume.
The idea of getting laid off can be scary. And while you don’t want to spend your days stressing over a layoff, it is important to know the signs that one may be coming. That way, you can prepare ahead of time so if you are laid off, it’s less jarring mentally and financially.
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