{"id":5407,"date":"2023-02-28T08:18:30","date_gmt":"2023-02-28T08:18:30","guid":{"rendered":"https:\/\/www.iese.edu\/standout\/?p=5407"},"modified":"2024-04-22T06:15:19","modified_gmt":"2024-04-22T06:15:19","slug":"massive-layoffs-company","status":"publish","type":"post","link":"https:\/\/www.iese.edu\/standout\/massive-layoffs-company\/","title":{"rendered":"Keys to facing massive layoffs in your company"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row css=&#8221;.vc_custom_1559140963143{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;][vc_column css=&#8221;.vc_custom_1559216895048{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;][vc_column_text]Many companies are <strong>laying off thousands of highly qualified professionals<\/strong> \u2014 even those with an excellent service record \u2014 on account of slowing economic growth, over-indebtedness, and persistent inflation.<\/p>\n<p>Advanced economies, whose growth already plunged by half last year, are going to see it shrink it by half again this year, according to <a href=\"https:\/\/www.imf.org\/en\/Publications\/WEO\/Issues\/2023\/01\/31\/world-economic-outlook-update-january-2023\" target=\"_blank\" rel=\"noopener\">International Monetary Fund forecasts<\/a>. And even these numbers are better than expected!<\/p>\n<p>Plus, companies are \u201cwaging war\u201d on not one, but three fronts: There\u2019s not only <strong>slowing growth<\/strong> to deal with, but the brutal bite of <strong>inflation<\/strong> as well as increased <strong>financial costs<\/strong>.<\/p>\n<p>Prices in advanced economies are going to skyrocket by nearly <strong>12%<\/strong> in 2022 and 2023, according to the IMF. At the same time, the Federal Reserve and the European Central Bank have been sharply raising <strong>interest rates<\/strong>, and with them the cost of taking on debt for large companies.<\/p>\n<p>One of the tools multinationals are using to try to mitigate the impact of this three-front war is <strong>laying off their workers<\/strong>. And that has caused the giants of the tech, financial, and automotive industries to take some measures that are very painful for their professionals, including <a href=\"https:\/\/www.investopedia.com\/biggest-layoffs-2023-7096389\" target=\"_blank\" rel=\"noopener\">major staff cuts<\/a>.<\/p>\n<p>We already explained in detail <a href=\"https:\/\/www.iese.edu\/standout\/recession-how-to-defend-against\/\">how to defend yourself against the recession<\/a>. The time has now come to provide you with some tips for doing the same with the <strong>mass layoffs<\/strong> that are starting to be announced. You can do so in three different situations: before the layoffs, just after you\u2019ve been laid off, and when you\u2019re been tasked with leading a team who were lucky enough to survive.[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a0595d87432c {margin-top: 80px !important;}<\/style><div id=\"thegem-divider-6a0595d87432c\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_single_image image=&#8221;5395&#8243; img_size=&#8221;large&#8221; alignment=&#8221;center&#8221;]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a0595d874394 {margin-top: 50px !important;}<\/style><div id=\"thegem-divider-6a0595d874394\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text]<\/p>\n<h2>Before mass layoffs: How is your company faring?<\/h2>\n<p><a href=\"https:\/\/www.iese.edu\/faculty-research\/faculty\/guido-stein\/\"><strong>Guido Stein<\/strong><\/a> is a professor in the Managing People in Organizations Department and director of the Negotiation Unit at IESE. He believes it\u2019s important to \u201cpay close attention to the <strong>income statement<\/strong> and the <strong>macroeconomic situation<\/strong>, but don\u2019t think you have all the answers.\u201d<\/p>\n<p>Only the CEO knows the CEO&#8217;s plans. And that means there could be <strong>surprises<\/strong>, and that one of them could come in the form of staff cuts. According to Stein, \u201cit\u2019s easier to be surprised these days, because remote work reduces professionals\u2019 perspective on how the business is faring.\u201d<\/p>\n<p>Plus, Stein adds, some companies \u201ctreated their workers great for years and convinced them it was because they valued their talent and well-being so highly.\u201d However, he says \u201cnow that the first problems with the income statement have started to emerge, they\u2019re turning to mass layoffs without thinking twice.\u201d<\/p>\n<p>If you\u2019ve started hearing <strong>rumors<\/strong> about major staff cuts and you think they could affect you, Stein recommends asking yourself the following:<\/p>\n<ol>\n<li>How&#8217;s the <strong>income statement<\/strong> looking?<\/li>\n<li>Does my company take the culture of belonging to heart? Or does it <strong>readily turn to layoffs<\/strong> in lean times?<\/li>\n<li>Am I <strong>cheap<\/strong> to lay off?<\/li>\n<li>How does my boss make me feel about my <strong>future<\/strong> at the company?<\/li>\n<\/ol>\n<p>If the rumors you\u2019ve heard line up with a shaky income statement, a company that readily turns to layoffs when facing headwinds, a boss who can\u2019t offer any assurance, and the fact that you\u2019re cheap to lay off because you\u2019re one of the most recent hires, don\u2019t wait any longer: Start looking for a new job. The worst thing that can happen is that you find a better opportunity in a healthier company!<\/p>\n<h2>Mass layoffs: What to do when your time is up<\/h2>\n<p>The day has come. Though hard to believe, it&#8217;s here. At this point, Stein believes \u201cyou should <strong>get over your grief<\/strong> as soon as possible and seriously consider whether there is anything in the <strong>quality<\/strong> of your work that could have justified the decision. If the essential reason is simply that the business is struggling, don\u2019t waste time or energy <strong>doubting yourself<\/strong> or getting upset.\u201d<\/p>\n<p>The most important thing, he advises, is to \u201cstart looking for work immediately, <strong>making your search a daily job<\/strong> that staves off any debilitating thoughts, <strong>learn<\/strong> whatever you can from the experience, and concentrate on <strong>being more attractive and flexible<\/strong> with the conditions you ask of your next employer.\u201d This final point, he clarifies, doesn\u2019t mean underselling yourself, but rather \u201ccoming to an agreement, for example, with the new company to review your salary in a few months once you\u2019ve achieved certain milestones.\u201d<\/p>\n<p><a href=\"https:\/\/www.linkedin.com\/in\/sandra-vegas-5419861\/\" target=\"_blank\" rel=\"noopener\"><strong>Sandra Vegas<\/strong><\/a>, head of General Career Preparation and Student Advisory at IESE, suggests a five-point strategy:<\/p>\n<ol>\n<li><strong>Introspection.<\/strong> Remind yourself of your interests, motivations and skills&#8230; And decide what you want to be from now on. Don\u2019t limit yourself. Don\u2019t rule out <a href=\"https:\/\/www.iese.edu\/standout\/reinventing-yourself-revolutionize-professional-life\/\">a reinvention<\/a>.<\/li>\n<li><strong>Alone or accompanied.<\/strong> You can make the journey on your own or do so with help, like with the <a href=\"https:\/\/alumni.iese.edu\/page\/programa-de-transicion-profesional\">IESE Professional Transition Program.<\/a><\/li>\n<li><strong>Personal brand.<\/strong> Think carefully about how you are going to promote your skills on LinkedIn, when <a href=\"https:\/\/www.iese.edu\/standout\/networking-reasons-crisis\/\">networking<\/a>, and through your CV.<\/li>\n<li><strong>Never stop looking.<\/strong> Make a list of companies and sectors that interest you, build a new contact network, and explore the possibilities of the <a href=\"https:\/\/www.iese.edu\/standout\/hidden-jobs-positions\/\">\u201chidden job market\u201d<\/a> which is the source of 70% of all opportunities.<\/li>\n<li><strong>The perfect interview.<\/strong> The economy and layoffs have multiplied the competition for the best positions, which means your <a href=\"https:\/\/www.iese.edu\/standout\/job-interview-shine\/\">interview<\/a> with the company must be impeccable.<\/li>\n<\/ol>\n<h2>My team was \u201csaved\u201d from mass layoffs: What should I do?<\/h2>\n<p>The 2008 crisis was very hard and Sandra Vegas had to lay off many professionals from her team at a multinational where she was director. She made a decision: \u201cI&#8217;m going to stay, and I&#8217;m going to <strong>tell them the truth about the situation at all times<\/strong>, asking them to row with me no matter what happens, and trying to set an example for them.\u201d<\/p>\n<p>She organized <strong>brainstorming<\/strong> sessions to find new approaches, had <strong>personal conversations<\/strong> with her team members who didn\u2019t understand the layoffs after having produced very good results the previous year, and took the opportunity to <strong>talk to many people outside the office<\/strong>. They helped her <strong>regain her confidence<\/strong> and she took heart, kept fighting, reinvented herself, and now dedicates all her efforts toward guiding IESE students in their careers.<\/p>\n<p>That&#8217;s an example of how to be a leader in troubled times. But what happens <strong>when you&#8217;re the only survivor from the team after the shipwreck<\/strong>? In those circumstances, Prof. <strong>Guido Stein<\/strong> suggests:<\/p>\n<ol>\n<li><strong>Don&#8217;t your guard or spend all day complaining<\/strong>, no matter how difficult the situation is. Crises are the best measures of your ability.<\/li>\n<li>If you want to get anywhere, you\u2019ll need to be very resilient. Take advantage of this situation to become <strong>stronger and more flexible<\/strong>.<\/li>\n<li>If you think another round of layoffs is likely, <strong>look for a new job<\/strong>. Unemployment is devastating and the best way to find a job is to already have a job.<\/li>\n<li>While you&#8217;re still at the company, <strong>try to keep growing<\/strong>. Take advantage of the opportunity that others no longer have access to.<\/li>\n<\/ol>\n<p>Mass layoffs \u2014 no matter how unexpected or complicated to manage \u2014 <strong>aren\u2019t the end of something<\/strong>, but rather the beginning of the next phase in a passionate professional career. It\u2019s a stage where IESE stands by its students, with different <a href=\"https:\/\/www.iese.edu\/programs\/\">programs for executives<\/a>, and reminds them that there are no end points here, only new points for departure.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row css=&#8221;.vc_custom_1559140963143{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;][vc_column css=&#8221;.vc_custom_1559216895048{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}&#8221;][vc_column_text]Many companies&#8230;<\/p>\n","protected":false},"author":4,"featured_media":5394,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107,108,114],"tags":[35,38,36,57],"class_list":{"0":"post-5407","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general","8":"category-general-es","9":"category-general-es-3","10":"tag-career","11":"tag-general-management","12":"tag-learning","13":"tag-skills"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Keys to facing massive layoffs in your company<\/title>\n<meta name=\"description\" content=\"Prepare for mass layoffs by identifying how is your company faring, reacting if you&#039;re laid off, or leading a team of survivors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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