How layoffs work behind the scenes

How managers pre-select employees to be laid off.

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I’m Lily, a product designer (UX) in San Francisco. With no connections, I hustled and broke into Silicon Valley after arts school. My story has been featured in Apple News and Business Insider.

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[graveljaw]

Absolutely true.
A good reminder that we’re laborers hired to generate profit. The concept of loyalty, etc, are designed to prevent people from jumping around to get higher pay.

Layoffs often result in the company shooting themselves in the foot if/when management had no idea how things got done or who was critical. Instead, they surrounded themselves with a "shield" of select people. (Another sign a layoff is coming)

The short of it is this: Do NOT take it personally!

Businesses can’t function without us and the odds are high that you will end up in a better position down the road. 💪

[Mary-tjqx]

I’ve been through multiple layoffs throughout my career and have gained enough visibility into what’s happening behind the scenes to confirm that this is exactly what happens. When there is a broad need to lower costs, department heads are given a target staff cost reduction. The “list” you mentioned is established within each department, where staff are ranked from top to bottom. This pretends to rank people based on performance, but it actually is a way to rank employees based on 1) who is favored by management and 2) salary. Management favors people who make their own position safer, I.e., they don’t threaten them. So if you are not a management favorite and you are relatively highly paid, you are on the bottom of the list and when layoffs are required, you’re the first to get the tap. Don’t make the mistake of thinking it’s about job performance and always assume you have no job security, because it’s the truth.

[addanametocontinue]

I think we've mostly suspected that layoffs are not random. The people who are laid off weren't drawn out of a hat, they were specifically chosen over other people because their position's elimination would hurt the company less. What's new to me is that the bad event is anticipated ahead of time and these lists are in place long before the layoff happens--if it happens.

[Mary-tjqx]

One more thing… it is common for employers to telegraph that you have no job security, when they know they are going to lay you off. It is far less legally tricky and far cheaper for them to encourage attrition than to have to pay you to go. My own approach has always been to hang on for a package. Totally worth it in my experience.

[nomadstar]

Great video. I would also add that those that were selected for layoff months ahead most likely will not be assigned to special tasks/projects. If this pattern is true for you, make sure you assess your work situation closely.

[AIRUSHAAN]

Absolutely agree! I even saw that my manager’s behavior towards me had changed in meetings, 1:1s, everywhere. I still stuck around, I really should’ve listened to my gut feeling and left!!! Nobody agrees that they have submitted the names and that it was always in their hands to let people go.. There is a political angle to this too, they may keep the more friendly, upbeat people and really not care about what they are capable of delivering.

[df-lnsn]

Big company vp that trim the fat get huge bonuses! layoffs usually occure the end of the year!

[AndreLindo]

This sounds very familiar. When I worked at Panasonic, there always rumors about these things happening and about the list or department. I still think they should warn people that layoffs are happening. Just like they get time to plan, we need time to plan as well. Sigh

[DeidreDevelops]

Wow this video is timely!! This just happened to me at my company! Thanks for explaining. I suspected a similar process

[transitengineer]

Sorry, to be so late to the party but yes, I agree 100 percent. This is just what happens when you work for a private company. Around the year 1999 when, I was age 39, we could tell that, our work unit was not really being valued by our Senior Vice President. When we had four (4) sections each with their own manager and staff, he felt it would be better to only have the four managers and none of the staff employees. Over the next three (3)-years as staff departed due to death, retirement, or new employment outside of the company ... they were never replaced. So, when they started to push me out the door, I had decided my next job should be with the government at the City, County, State, or Federal level and, this was the best career decision of my life. I never had to worry about a layoff ever again (smile...smile).

[blackloki]

I think a thing that should be pointed out is layoffs are documented 2 months in advance. Thats the law so make sure you check your local government layoffs website. The post two months in advance of the layoff and give exact numbers for exact location in the state.

[hedonepicurea]

The sad part is when people lie to workers vs telling the truth.

Currently handling a massive downsizing and a few idiots caused a lot of people to not be compatible with the company's direction.

[tomiisang]

I was laid off by a big tech company at the end of July and this absolutely checks so many boxes.

My manager told me themselves that layoffs may happen. I was told everything would be fine, then the next day that it may not be. Days later me and others were laid off.

As mentioned, my manager said oh they didn't expect it, and it's such a shock, but they weren't convincing. They definitely knew long before.

It definitely hurts to know that, but feels much better to no longer be there.

[Vsjxnndhxk]

CEOs are the ones who should be laid off it's their decision-making that costs the company

[adamc.]

This is getting too much to read about. I sympathize and empathize with everyone.

[jhors]

Thank you for posting this helpful video

[ThatGuyYouKnowUKnow]

Layoffs (aka firings) are like a divorce. It may seem like she just thought it up but has been planning it weeks or years in advance.

[Qladstone]

What if they announce you're laid off and during your notice period try to squeeze more work out of you?

[adamc.]

Did you manage to stay in SF after all you went through recently? I haven't set foot in that city since late 2019. I don't know why I still live in LA county as a remote worker, prob too afraid to sign a new 12 month lease in another part of CA given all this very frustrating news of recession, etc. It's so frustrating because we went through a whole shut down due to covid, then jobs rebounded, and now this again!

[stephtraveler]

There are two sides to every business: the revenue side and the expense side. ALWAYS be on the revenue side. When public traded companies (Google, Facebook, et al) are under pressure to make quarterly profits, the first place they cut is expenses. Biggest expense is LABOR. Heads gotta roll. Once they start, they do it every year. It becomes part of their "wall street" model.