When markets turn down, layoff talks start. When they turn down for an extended time, layoff talks ramp up. When Mark Zuckerberg tells his Meta managers to find those not performing, everyone listens.
Layoffs are here, which isn’t surprising to those paying attention.
After a booming market led to startup capital and growth for companies, this year things changed. The crypto market crashed and capital dried up. Now we’re seeing the fallout from multiple areas of economic weakness.
This isn’t the first time we’ve seen layoffs. That’s important for employers and employees to remember.
Still, if you’re one of the 450 Netflix, 1100 Coinbase or 300 Robinhood employees currently facing unemployment, knowing this is part of the market cycle does not help. Added to that are stories debating whether this is simply market fluctuation, and worry can definitely set in.
The world is changing. Some of the layoffs we’re seeing right now are due to aggressive expansion and the need to correct. Other layoffs, like the management cuts at Victoria’s Secret, follow deep stock losses.
Economists say inflation will continue to rise and with it costs will also continue to increase. We’ve seen the CPI (consumer price index) rise out of pace with the PPI (purchase price index), leaving margins squeezed and earnings reports finally rolling in lower than projected.
Layoffs will continue and job offers will continue to be rescinded.
So what does that mean for workers?
Experts say now is not the time for big moves. The economy can shift quickly, so be prepared.
Entrepreneurs and small businesses should know that they’re not alone in recent struggles and that preparations should be underway for changes.
Employees reading should know there are steps to take if you get the dreaded pink slip. You’ll need to talk to HR and ask about insurance coverage among other things.
Remember, the economy moves in cycles. We’ve seen unprecedented growth the last few years, and now inflation is here. If you haven’t been laid off or had to lay anyone off, don’t assume that time is coming.
Layoffs are here. It’s not inevitable you’ll be impacted, but be prepared.