Question
I was laid off again. I know it’s not just me. Many tech pros are posting on sites like Reddit, Quora and Stack Exchange about being laid off two, three, even four times. How can technology pros who keep getting laid off break the cycle? How should they change their job search, target list or career path? Is it possible to minimize the risk of being laid off again? If so, how? What would you advise us to do?
Nick’s Reply
You’re asking a very good question for which I think there is no answer anyone wants to hear! Over the long term there are really no “safe” companies or jobs, especially in this economy. A stockbroker (“financial consultant”) friend of mine explains it like this:
“The stock market doesn’t like uncertainty. Feckless economic policies spawn uncertainty. And when companies can’t plan for the future confidently, their spending slows way down.”
Companies start firing and stop hiring, almost haphazardly. A company that was thrilled to hire you doesn’t flinch when it fires you to reduce its risks.
Laid off: Too many all at once
Look around. Jobs and employment data are suddenly suspect if they’re available at all. Taxes and tariffs are on a seesaw. The federal government has by itself laid off hundreds of thousands of workers and thrown them into the unemployment pool. Consumer costs have spiked. There is a pervasive if almost silent panic that has descended on the economy.
No, you can’t fix the economy. But you can control how you deal with it.
Between the highly political changes being inflicted on our economy on the one hand, and the stunning changes in tech itself (A.I. being possibly the most obvious — more uncertainty!), job security has all but disappeared.
Coping
There’s no way to avoid job uncertainty. But you can learn to cope with it. I think the best career strategy today has two components: Be ready to move quickly, and be the best expert in your line of work. And I think if you look closely, this applies not just to tech jobs — though your world is probably more volatile by nature — but to most jobs.
You must be to be ready to change employers at the drop of a hat. Don’t let yourself be taken by surprise. Frederic Amiel said it well: “To be always ready, [you] must be able to cut a knot, for everything cannot be untied.”
There’s no way to “untangle” the layoff trend, or to reliably pick “the next big thing.” Put another way, forget about what’s going to be “hot” next. Instead focus on being hot yourself! Decide what kind of work you’re prepared to give your all to. Then be (or become) the best expert at that. If your employer (or any employer you’re considering) isn’t the best in its category, cut the knot.
Laid off
For example, last summer Microsoft downsized, most notably in its Xbox group. That doesn’t mean Microsoft will stop producing new Xbox products and technologies, nor does it mean its competitors will go away. It means Microsoft will be able to employ fewer Xbox folks. What to realize is, since it will have to live with fewer Xbox workers, Microsoft will need the very best, most expert techies (and product and sales people) in the gaming space.
If that’s not you, then I can’t help you. There is no question that the least prepared workers will be hurt the most.
The best will survive, even if it means changing employers. Other companies will also want to hire only the very best. Be among those most likely to survive.
Be with and among the best
So the short version of that is, invest in being the very best at what you do or want to do, and – whether you get laid off or not – always be pursuing the best companies in your work sector or in the sector you want to jump to. Always be looking at the best place to land next – because the layoffs are not likely to stop until the international economic and political uncertainty is quelled to acceptable levels. (I believe the only real power you and I have over our economy is at election time. Don’t sit out the next election. Vote!)
Likewise, make sure the movers and shakers in your chosen field can see you. Participate in your professional community. You don’t need to be a star, but others in your field should know who you are. Of course, you must earn such visibility. (No one said this was easy, but nor is any good job you want!)
Here’s my tip: If you need to change employers, whether because you’ve been laid off or because you’ve “fired” your employer, the best way to do it is to always be hanging out with people who do the work you want to do. And don’t ask for job leads. Talk shop. That’s how you become part of the circle of friends that leads to new jobs — and that protects you from the inevitable lay-off cycle.
Here are a couple of ATH columns that dive into the “how to” of this career strategy:
In-Your-Face Audio Q&A: How to get a job
Stand Out: How to be the profitable hire
There’s no sure way to protect yourself from being laid off. But you can be ready to cope with losing your job. What obligations or responsibilities do employers have? How would you advise this victim of repeated layoffs?
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I would advise anyone over 50 to keep a detailed daily journal of your activities, emails and phone contacts. It is no secret that in coporate America, this demographic has a target on their backs when the economy contracts even slightly. Don’t be afraid to document any percieved age related hostile work envirnoment issues you experience. Before any reductions take place, contact HR and express you concerns. Simultaneously, contact an employment attorney and set up a meeting. Don’t ask me why I know this works!
Reminds me of Brian Reid who sued Google for age discrimination: https://ogletree.com/insights-resources/blog-posts/california-supreme-court-holds-that-stray-remarks-made-by-non-decision-makers-can-be-considered-in-age-bias-case/
Re: make sure the movers and shakers in your chosen field can see you
Hi, Nick, and Happy New Year to all!
I’m not on LinkedIn. I see that you are. How much should LinkedIn be part of my visibility? Someone I respect recently said that LinkedIn is a “must”, which I found surprising.
Suggestion: Make defensive moves as well to reduce your vulnerability to shocks.
1. Keep your necessary living expenses as low as possible. Reduce or eliminate debt. Be willing to economize when things are tight.
2. Have at least one alternative source of income. It doesn’t need to be a lot, but it needs to be more than zero. Zero is a very tough number to work with.
I like the idea of having a second (or third) income. Very good advice.
I normally do not respond to my posts, but given the importance of this topic, I offer the following advice based on my personal experience of over 40 years employment in multiple Fortune 500 companies.
First of all, layoffs are periodical and should be expected at least a few times in your professional career. Again, large public companies operate on a next quarter mentality. It doesn’t matter who the CEO is and their personal beliefs. The equity markets rule public companies. You need to understand this simple fact. These markets expect consistent earnings gains that drive an increasing stock price. They have no patience with the idea of long term growth. Ergo, if earnings falter, in most cases a reduction in personnel is demanded to improve short term profits. It doesn’t matter if this is counter to the long term prospects, earnings must be preserved at almost all costs. Hence, employees of all levels are laid off or more often just fired. They are given “packages” to soothe the pain of rejection. It wasn’t always this way, but is the reality now. I don’t mean this to sound harsh, but it is the reality I have experienced. Who gets laid off and who stays is almost a random proposition unless you are on the underperformer list which is a convenient time to clean house. These situations are the minority of people laid off.
So what does an employee do in response to this reality? Several things, first since there is no loyalty to the employee, it is almost a requirement that you are constantly in the job market. NIck gives great advice on how to do this so I won’t elaborate. The second is to embed yourself into a profit center. When cuts come, those working in future growth (i.e.) R&D, new business development, etc will be the first to go. If you are in a position that is needed to keep revenue and therefore profits, you have a temporary albeit tenuous job security.
Aside from general market downturns that affect everyone more or less, there are the personal issues not tied directly to the general profitability of the company. Situations where there is a sudden change in management brings out the corporate vermin who are lacking in real skills but desperately want to move up in the corporate pecking order. These corporate parasites will do anything they think they need to do to improve their position. If you are caught in one of these situations, you are own your own. HR will not intervene until after you are gone when they realize the damage done by the perps and they fire them for screwing up the company. . Not that they didn’t know, but chose to not intervene. HR jobs are great in this way as they are never held responsible for the outcome of their inaction. Then when the problem of their inaction gets the attention of upper management, they simply fire the perpetrators, and claim victory. Good work if you can get it.
As you probably guessed. I was the target of the latter type of corporate perfidy. I saw it coming and took proactive measures by hiring an employment attorney and keeping my legal actions an absolute secret. I can’t tell you how important absolute secrecy is in this process, After taking the largest chemical company in the world to court and sternly spanking them in a legalistic way, I can say that I am happy with the six figure settlement we reached. Legal restrictions preclude me from saying more. However, the two miscreants responsible for this were fired shortly after the settlement.
I will end this post with a quote from Whitney Huston’s song “The Greatest Love”
And so I learned to depend on me
I decided long ago to never walk in anyone’s shadows
If I failed, If I succeeded at least I’ll live as I believe
No matter what they take from me
They can’t take away my dignity
Because the greatest love of all is happening to me
I found the greatest love of all happening inside of me.
And so it goes
Yours Truly
Felix H.
We may have to agree to disagree.
IN my experience, most enterprise corporations’ practice of “strategic planning” extends no further than next Friday’s earnings call with the press.
I’m speaking here strictly from personal experience, so it’s just one data point.
In the tech world you need both breadth and depth. You’re can’t be an expert at everything, but you should be really good at a few things. And have some general knowledge of the others. Get a Master’s degree. When the hiring scene is dismal, companies won’t consider anyone without one. Most companies will subsidize your education. You’ll also be paid more. But avoid a Ph.D. unless you are in a very specialized field.
Being a really valuable employee with a degree from a stellar university (and a graduate degree) will help get you in the door. But when layoffs come, you will likely be one of the highest-paid in the group and especially vulnerable. Your boss may think you’re the greatest thing that’s ever happened to their group, but your boss’s boss only knows you as Employee Number 64327. The one with the highest salary.
Felix is correct. Anyone over 50 in the tech industry is going to have a hard time staying employed, and anyone over 60 is pretty much doomed. Expect jobs to last a short time (providing you can get hired in the first place) and always have your next gig lined up. Just follow Nick’s advice, grow your network and be alert to signs of trouble within your company or industry. If you are an older worker, start-ups can really use your experience and will be grateful to have you. But most start-ups don’t make it.
I know this is a lot of doom and gloom, but it’s the reality of the tech industry. Other careers may be different; I only had the one. A friend of mine once told our boss, “There’s always jobs for the good people.”
Be one of them.