How To Turn Massive Layoffs' Meaning Of Uncertainty Into Golden Opportunities
What do ‘loud layoffs’ or ‘massive layoffs’ mean?
It came as a shock to many when Elon Musk axed nearly 75 percent of social media giant Twitter’s workers in late 2022. The layoffs were messy and ‘loud’, with far-reaching consequences for the viability of the company and the well-being of the affected employees.
In this article, JobStreet explains what they are and how layoffs affect employees and the job market, and shares tips on how to cope and find better opportunities.
What is a Loud Layoff?
‘Loud layoffs’ is a term coined to refer to the type of recent layoffs that are massive and publicized, as in the case of Elon Musk at Twitter, who tweeted the steps he took to reduce the company’s workforce.
‘Massive layoffs’ mean that there is a situation where some 50 or more people, or around 30% of the total workforce, are let go.
The impact of a massive layoff can be far-reaching, with a lasting impact on the individuals who are laid off and on the communities in which those people live and work.
The most typical reason for massive layoffs is a decrease in company profits or a restructuring of the company for various reasons (corporate mergers, acquisitions, or other financial events) – in the case of Twitter, it was new leadership.
Companies may decide to make massive layoffs to reduce costs due to economic downturns, changes in the industry, the need to modernize, or the impact of new technology.
Examples of Loud Layoffs
Twitter’s wasn’t the only high-profile layoff that occurred in 2022, given rising inflation, the war in Ukraine, and the continued effects of the pandemic, among other factors. Here are some other recent examples of loud layoffs:
1. Meta: 11,000 employees
Facebook’s parent company let go of 13 percent of its workforce in order to become a “leaner and more efficient company,” according to CEO Mark Zuckerberg.
2. Amazon: 10,000 employees
An Amazon senior vice president announced in a blog post in November 2022 that the company “decided to consolidate some teams and programs,” thus “some roles will no longer be required.” The organization also plans to lay off more employees in 2023, and has initiated a hiring freeze.
3. Salesforce: 7,000 workers
On January 4, 2023, Salesforce CEO Marc Benioff said the B2B software company cut some 10 percent of its workforce over the month.
4. Vimeo, 17% of workforce
While the exact number is unknown, the video-hosting platform laid off 6% of its employees in July 2022, and cut 11% more in January 2023. Management said the layoffs were to give the company “financial flexibility” in an “uncertain economic environment.”
5. Shopee: 5,000 employees
In the Philippines, Shopee laid off an estimated 5,000 employees in September 2022, according to some former employees (the exact number is unknown). Around 100 people working in operations were let go, and most of the employees of the customer service department.
6. Garment factories in Lapu-Lapu City: 4,485 workers
In what has been called “the largest retrenchment [last] year in the Philippines, five apparel companies owned by Taiwan-based Sports Center International – Mactan Apparels Inc., Metro Wear Inc., Globalwear Manufacturing Inc., Feeder Apparel Corp., and Vertex One Apparel Phils. – laid off workers in October 2022.
Other large U.S. companies that have let go of thousands of employees were HP, Lyft, and Snapchat, among others. Some business analysts expect the trend of layoffs to continue into 2023 as world economic conditions remain uncertain.
How Do Loud Layoffs Affect the Job Market?
While massive layoffs may be difficult for those laid off, the effects of this phenomenon extend into the wider job market.
When large numbers of people are laid off in a short period of time, the job market becomes flooded with unemployed candidates. Instead of having multiple companies hiring, there will now be fewer options. This can lead to a scarcity of desirable positions. The competition for new jobs intensifies as employers become overwhelmed with a much larger talent pool to choose from.
This can also lead to wages becoming stagnant or decreasing due to the surplus of applicants and employers being able to pay lower salaries while still receiving a high quantity of quality workers.
With potentially lower salaries on offer, jobseekers may find themselves wanting to take positions with fewer benefits and less job security, leading to a decrease in job satisfaction and mental wellbeing.
How Do Layoffs Affect Employees?
Massive layoffs can lead to a decrease in overall morale, which can lead to a decrease in productivity as the remaining workers realize they could be the next to face layoffs.
The fear of layoffs can also lead to a decline in customer satisfaction as workers become less likely to go above and beyond for customers knowing their security could be short-lived.
Not knowing whether or not they're safe leaves people feeling anxious and uncertain. This can lead to physical and mental stress, depression, and an overall sense of insecurity. The loss of coworker relationships and a sense of belonging can also leave employees feeling isolated and alone.
Also read: Take It Easy! Signs Of Stress At Work And How To Manage Them Better
The financial implications of a layoff can be severe. Employees may find themselves needing to suddenly look for another job in a tight job market, and the degree of financial instability can be significant. In addition, processing severance packages and other forms of unemployment benefit can take some time and leave employees without a source of income in the meantime.
Loud layoffs also have a long-term impact on employees. It may take employees a long time to find another job after being laid off, leading to lost wages and the potential for wage decreases.
Additionally, the emotional toll of being laid off can leave employees feeling demoralized and disenchanted with their chosen career. Being laid off can mean an abrupt end to career aspirations and job prospects, while those lucky enough to keep their jobs must deal with the guilt that comes with being spared the same fate.
How to Deal With A Layoff
Accept the situation for what it is.
Everyone experiences a sense of shock when a large number of layoffs occur, and it’s important to remember that accepting the situation is key to overcoming it. If you allow yourself to be angry or frustrated, try to do so in a healthy way. This can help you move on to the next step of the process.
Get organized.
Obtain copies of all important work documents and information, and create a timeline that outlines the steps you will take moving forward.
Explore your options.
Getting laid off may be an opportunity to try something new or explore different career paths. See what education, training, certifications, and licenses you may need in order to pursue a new career path, perhaps in a different industry or geographic location.
Stay positive.
Although it can be difficult to think positively in a situation like this, staying positive will give you the motivation and determination to move forward. Surround yourself with people who have similar interests and have the same kind of mindset to help you stay motivated. Try to find solace and joy in small things, like exercising or pursuing a hobby.
Seek help if you need it.
Layoffs can be an incredibly difficult process to go through, and it’s important to remember that you don’t have to go through it alone. Seek support from friends and family, as well as from counseling services or a support group.
These aren’t easy steps to take, but following them can help employees cope effectively with a massive layoff and bounce back better.
Turning a Layoff Into A Career Opportunity
Losing your job can feel like a major setback, but it doesn’t have to be. Instead, consider how this can be an opportunity for growth and change. Take advantage of the time you’ve been granted to set fresh goals for yourself and steer your career path into a new direction.
Here are some tips on finding the silver lining in a layoff:
1. Evaluate your interests and what kind of career you really want.
Consider opportunities that you may have been too afraid or too busy to pursue before. Do your research and due diligence, and gain the skills to make it happen.
2. Reach out to mentors.
Talk to a mentor who can offer sound advice on how to overcome this setback and provide honest, unbiased feedback and guidance. They can evaluate your work background, skills, and interests and help you shape a strategy for the future.
3. Tap into your network of contacts.
Reach out to friends, family, and colleagues. Their networks are your networks too, in a sense. Don’t be afraid to ask for help in getting leads about job opportunities.
4. Enroll in training programs.
Browse job opportunities and determine how you can improve your skillset in order to get a better role. For example, if you’re an advertising copywriter, consider entering the remunerative field of technical writing and take the necessary training.
5. Consider industries and roles you may not have thought of.
Now may be the time to look for employment outside of your comfort zone. Explore all of your possibilities.
6. Update your resume and professional profile.
It’s always a good practice to keep your resume and online professional portfolio updated, in case a hot new opportunity arises.
7. Write cover letters for specific job openings.
It may be laborious, but writing tailored cover letters that specifically address the job opportunity and organization can pay off big in terms of attention from recruiters, who may appreciate your attention to detail.
8. Apply, apply, apply!
Take this chance to revitalize your career. This can be an amazing opportunity to start anew, follow your passions, and develop an even better version of yourself.
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