5 Warning Signs of Potential Layoffs

Let’s face it: the current economic climate can feel unpredictable. This can cause a lot of uncertainty, especially when it comes to job security. It’s natural to worry about the impact on your career.

The good news is, there are steps you can take to become more proactive and take control of your professional future. By taking some smart strategic actions, you can protect your career during both stable and unstable economic times.

The Changing Landscape of Job Security

The concept of a lifelong career with a single company is starting to feel like a relic of the past. Companies used to foster a sense of loyalty and stability for their employees. However, the reality is that corporations are now prioritizing profitability in a competitive global market. Now the goal is to maximize profits and shareholders’ value. This can sometimes lead to difficult decisions, as recently witnessed with the closure of Tango Gameworks.

Founded in 2010 by game developer Shinji Mikami, Tango Gameworks was acquired by ZeniMax Media in October of that year due to financial issues. They released critically acclaimed titles like The Evil Within series and Ghostwire: Tokyo, gaining a loyal fanbase.

However, after the release of their 2023 surprise hit, Hi-Fi Rush, questions arose about the studio’s profitability. In a move that shocked the gaming community, ZeniMax Media’s parent company Microsoft announced that they were closing Tango Gameworks in May. This news is a sobering reminder that even studios that are beloved are not immune to the effects of cost-cutting.

5 Signs of Company Inefficiency to Watch For

The warning signs of potential layoffs can often be subtle. By staying aware of certain inefficiencies within your company, you can gain valuable insight into its overall health. Here are five key areas to watch:

• Reduced Productivity: A decline in overall output or a noticeable increase in time spent on non-essential tasks can indicate inefficiencies that could lead to cost-cutting measures.
• High Turnover: Frequent departures, particularly within specific departments, can signal underlying problems that could trigger broader layoffs.
• Cost-Cutting Measures: Pay freezes, benefit reductions, or layoffs in non-essential areas are often signs of financial strain and potential future cutbacks.
• Morale Decline: Apathy, negativity, or a general decrease in employee engagement can be red flags for a company struggling financially or strategically.
• Strategic Shifts: Sudden changes in business direction, core products, or a lack of clear vision for the future can indicate instability and potentially foreshadow restructuring or layoffs.

Coping with Uncertainty

Even in an uncertain economic climate, there are steps you can take to manage stress, fear, and anxiety related to potential layoffs:

• Acknowledge and Address Your Emotions: It’s normal to feel anxious or fearful during uncertain times. Don’t bottle up your emotions; confide in a trusted friend, family member, or therapist.
• Focus on What You Can Control: While you can’t control the company’s decisions, you can focus on your own preparedness. Update your resume, strengthen your professional network, and stay updated on industry trends.
• Practice Self-Care: Prioritize activities that reduce stress and improve your well-being. This could include exercise, meditation, spending time in nature, or pursuing hobbies you enjoy.
• Seek Support: Don’t be afraid to seek professional help if you’re struggling to manage your anxiety. Therapists can equip you with coping mechanisms and strategies for dealing with workplace stress.

By following these tips, you can approach the future with confidence and take charge of your career security.