Let's talk layoffs.

Welp, I joined the layoff club two weeks ago. I wasn’t exactly shocked. There were rounds last year ( I needed to stay put at the time because life was being life and I had to have life saving surgery.). There were talks about restructuring and project re-prioritization happening the Friday before it happened due to the leadership team needing to raise more money from the VC board. If there is one thing I’ve learned from working, regardless of the type of company it is, read up on the company’s financial health. While a company could appear to be in great standing, they could actually not be profitable yet. When a company is VC backed, a ROI is expected within a certain amount of time.

So, what does this mean for you? It means that during an economic downturn any initiative that is not driving immediate revenue growth will get cut. The business goal is to consistently scale profit every year. When profit margins are not being met to the VC board’s expectations, then overhead needs to be downsized to make profit. The easiest way to do this is by RIFs ( reduction in force). It can catch you off guard if you’re not paying attention to how the company is running. If you start hearing about restructures, software budgets are decreasing, hiring freezes despite the teams being stretched thin, bonuses and promotions are paused, or you hear about consultants (ex. Mckinsey, Alix Partners) coming in to view redundancies. Don’t panic but start updating your resume, backing up your files, and saving more money.

The first time experiencing a layoff is scary as hell but the way to get through it is to never view any role as your forever job. Whether you get laid off or resign, you won’t be there until retirement. So this means that you need to prepare for that. To help with that, I created a guide you can use. You can download it here. It’s completely free. No email address or sign up needed.

I hope it helps you. In the meantime, I’m going to continue focusing on recovering from burn out, applying to new opportunities, and enjoying language school. Stay safe & stay healthy.

Happy wireframing.

-Nita