I just got off the phone with a friend who is scared, and well he should be!  His company employs over 600 people and has been around for more than 30 years.  They pride themselves on “never having had a massive layoff in the entire history of the organization.” That is. . . until today.

Today they let about 40 people go from the IT department — the first mass layoff in the company’s history.  My friend has worked there for over 5 years and has felt pretty secure in his job through this entire economic downturn.  That is. . . until today.

What are some of the warning signs of a pending lay off?

• Sales Staff leave. (What do they know that you don’t know?)
• Company initiates a freeze on hiring, even to replace people who retire or move.
• Projects (especially large building or IT projects) are put on the back burner or canceled all together.
• Your competitors are laying off staff.
• You are going through a business restructure.
• Upper management calls a special meeting to tell you that “we will not be laying off anyone in the foreseeable future.”  (This is a huge read flag!)
• Minor expenses (such as free coffee in the break room) are suddenly cut.
• Unexpectedly resignation of Senior management.
• Termination of contractors and temporary workers.
• Travel budgets frozen or cut back.
• Excessive political maneuvering by people who are “in the know.”

The wise person will pay attention to these warning signs and begin to prepare for a pending layoff.  Sticking your head in the sand will NOT help you if your company decides it’s time to cut staff.  If you want to land on your feet, you need to start developing your plan now.  Otherwise, you will be left high and dry, completely unprepared to weather the unemployment storm.