As mass layoffs and cross-sectional job cuts hit every industry, be it tech giants like Microsoft or consulting firms, everybody is under the lens. Employees and stakeholders take to social media looking for an answer to the same question: How to avoid layoffs?
While firms rapidly increase investment in AI and aim for cost-cutting tactics, a netizen took to Reddit and questioned, “how to be a top performer with high salary but not be the first ones to get laid off when times are tough?” While there is no guarantee or relation between pay grade and layoffs, this hypothesis points to the possibility of the same.
Is it possible to avoid layoffs?
As a response to the post, another user generously replied that, since firms are in a cost-cutting frenzy, “most expensive employees tend to go first.” But, for one to achieve a high salary in competitive firms, an employee will have to build enough value. Giving three quick general career lessons, the user shared:
Invest wisely: In case one receives high compensation, “invest your money wisely” because “the paycheck will dry up one day”, says the redditor.
Prepare: Accepting the reality of layoffs, it is essential to prepare for a new job. “The most important task at your current job isn’t actually your job duties; it’s how your current job can setup your next one,” advised the post.
Job-switch: While looked down upon by employers, a job switch can significantly boost your graph. The user calls it a classic “dog and pony show” and related to the ambition for a higher pay grade.
What is the layoff dilemma?
For employers, the hardest thing is the sudden blow to their finances as one gets comfortable with a steady income. However, pointing out a trend in layoffs, Garey_Coleman, a user on Reddit shared their personal experience from company layoffs.
They said the first to go were often who were top performers but with high salaries. As visible in Microsoft, Ford, Meta and other firms who laid off more than 70% of their critical teams over the last two years, as per an analysis earlier this month. Ironically, the low performers and troublemakers came much later. Who were retained? The ones who were paid moderately but were “good workers”.
A conclusion drawn was, “If you want to be safe (from layoffs), be a good worker and have a low salary”. However, with rising expenses and inflation rates, the average cost of living is becoming unaffordable for the general employees. This also comes with the added pressure of employees working in the US under the H-1B visa scheme because a loss in job would mean less than 60 days to find a new one or face deportation.