The Coming Layoffs
081: Companies are slimming down fast
You’re fired
Lay offs in the workforce are beginning to escalate.
You can smell it in the virtual zoom chats, the all hands meetings, conference calls, and the general lack of demand from timid clients waiting to see if the recession becomes even worse.
PIPs are being given out, shoulders are getting tapped, and uncomfortable conversations are being had as corporations try to effectively trim their bull market fat and batten down the hatches for a long second half of the year.
There’s certainly a lot of fuckery afoot as a certain subset of ill equipped and woke managers struggle to justify their high salaries and jobs that they secured during the most prosperous economic run in human history, many times without proper qualifications or merit.
Most hedge funds sat out that last rally we saw, and the big money seems to be waiting for some clarity on how to proceed in this unpredictable environment. This is a leading indicator of trouble on the horizon.
IPO issuance has plunged 95% to $4.9 billion through July, while total equity issuance has fallen 80% to $57.7 billion, according to SIFMA (CNBC). This has a massive effect on deal flow, morale, and obviously revenues.
In a recent PWC study some companies are starting to streamline their workforce despite concerns about their ability to hire and retain the right talent.
50% of respondents are reducing their overall headcount, even as business leaders remain concerned about hiring and retaining talent.
One doesn’t need to look far to see the coming signs of a potential recession and a series of lay offs in the job market - especially in tech, finance, and other high growth sectors.
Do you know what your gameplan would be if you received the nod?
Many people, because of ego or fear, never examine what their plan would be if they were to unexpectedly lose their job. In this environment it can definitely be an anxiety inducing event, so it pays to have a general sense of what you’ll do if that happens. Remember - some firings are often blanket or targeted with vague explanations.
Sometimes it simply makes sense to get rid of you politically for a manager, upper member of a team, or for optics given increased pressure from boards and investors to cut costs and drive results in this shitty market.
You may be doing an excellent job and still get let go. Don’t take it personally but make sure you have a plan to persevere and come back better. If you missed our 10 ways to improve your life overnight post you can read it HERE.
We’ll walk through the current state of the US job market, where lay offs are happening, and where we think they’re going to continue. We will also walk through my recommended tips for getting way ahead of any fuckery or unexpected lay offs - there’s a couple tools you can use to counter it and make sure you make out best in a variety of situations.
My gut tells me things are going to get a lot worse soon but the good part is there are some clear signs that you can pick up on that should give you a sense of what’s coming and if you are at risk.