The Problem with Layoffs
Why they suck more than you think they do for everyone involved
Layoffs do 3 terrible things:
Layoffs trickle down there consequences. If a Software Quality Assurance Developer loses their job, the project they are working on will suffer, which could make life very hard for the IT Tech that relies said software.
Layoffs add a big surplus to the market as a whole. Experienced people will start taking lower tier jobs out of necessity, leaving the entry level people to find NO jobs. Experience people get lower pay and entry levelers have no work available, Lose/Lose.
Layoffs cause job stagnation for the people who kept their job. It creates almost a need to harden their shell, hunker down and just be grateful they have a job. Job hopping doesn’t happen as much, which is one of the few ways an individual has leverage to change their salary and position of status.
All these issues, but at least the balance sheet looks better for a company’s shareholders, right?!
No, most companies that end up doing layoffs never recover their previous all time high stock prices. 33% of layoff events corresponded to a company shutting completely down.
So what have we learned? Layoffs are the worst…
But we knew this already didn’t we? Always invest in yourself before you give your all to a company that might throw you away tomorrow.
Until Tomorrow,
Jason Ziebarth
JZ#663