Right Before A Job Starts Laying People Off, There Are Usually 3 Subtle Signs, Says An Employment Lawyer
Prathankarnpap | Shutterstock Layoffs rarely happen completely out of the blue, even if employees don't necessarily realize it. Long before a company actually makes cuts, there are usually shifts in leadership behavior and workplace policies that suggest changes might be coming.
On their own, these moves may seem like nothing out of the ordinary, but together they reflect stabilization measures that often happen right before official announcements are made. Craig Levey, Esq., an employment lawyer, knows this all too well, and he posted a TikTok video stating the common signs he's seen that indicate layoffs might be around the corner.
Here are 3 subtle signs that show up right before a job starts laying people off:
1. Return-to-office mandates
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"It's now known that when a company mandates that their employees work in-office, particularly five days a week, there are gonna be many employees that resign because they simply can't work in-office five days a week, or don't want to," Levey explained. "By mandating return-to-office, companies know that employees will do a lot of the work for them."
After years of remote or hybrid work, going back to working in the office full-time costs a lot of money and energy that many workers aren't willing to give up at this point. So, rather than adapting to the new policy, they decide to resign and look elsewhere for working conditions that fit their needs and wants.
Putting these mandates in place may seem like simply restructuring or cutting costs, but in reality, it's a strategy to automatically reduce staff numbers without having to announce job cuts or pay severance. While not every return-to-work mandate is because of upcoming layoffs, experts say it's often an early sign of organizational downsizing.
2. Comments from the company's CEO or upper management
According to Levey, "It's very common for a company to notify their staff through letters, emails, etc. that things aren't going well with the company, earnings are down, and this is a clear signal to employees that changes are coming, including layoffs." Open and transparent communication is often valued in the workplace, masking this type of correspondence as care for the employees and their livelihoods.
However, there's more to it. Levey continued, "The company hopes that employees will start making moves elsewhere and look for other jobs so that, once again, the employee will do the work for them before the layoff has to happen." Public companies have a reputation to worry about, so they often try to manage expectations before making major reductions in their workforce.
These comments are notable because companies rarely discuss weaknesses casually. CEOs and managers are typically very cautious in what they choose to share and the tone they use. If leadership suddenly emphasizes uncertainty, financial troubles, or declining demand, it can sometimes signal upcoming changes.
3. Implementing multiple cost-cutting measures
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Levey shared that this is one way companies try to manipulate their bottom line before layoffs, and it could even include extreme measures such as sending employees overseas. Workforce reductions can be expensive and disruptive, so companies will often do whatever they can to lower expenses without noticeably affecting day-to-day operations.
Cutting costs in certain areas may also help leadership evaluate exactly how serious financial problems are before making permanent staffing changes. If revenue decreases are only temporary, smaller cuts might be enough to keep a company profitable until conditions improve. If not, then the company can use this time period to identify underperforming departments and opportunities for restructuring, and figure out who to let go.
Kayla Asbach is a writer with a bachelor's degree from the University of Central Florida. She covers relationships, psychology, self-help, pop culture, and human interest topics.
