How to Develop a Proactive Layoff Plan

Layoffs cost 10X to 100X more than they save, but HR’s data only covers compensation, so business leaders only see savings. I use data to talk at least one CEO out of layoffs every month. Here’s how to protect your team from the chopping block. Quantify the Loss: The most common mistake is making the case with the value the team has created and the projects it has delivered. CEOs think about future value, not past gains, when making layoff decisions. What projects won’t deliver and how much revenue will be lost? CEOs need growth now more than ever. Build the case with data that quantifies the forward-looking value on the team’s product roadmap. Emphasize This Year’s Losses: Your CEO is being told that after an initial cost in the next 1-2 quarters, the business will see higher margins. Quantify this year’s lost revenue in big, bold terms. Showcase how internal efficiency initiatives will save the company more than the team costs. What external teams will miss their goals? Everyone advocates for themselves, so you’ll stand out by getting other leaders to add their voices. Use external teams’ KPIs and connect them to top-level strategic goals. Reduce Costs Without Reducing Headcount: Take high-cost, low or uncertain returning projects off the roadmap. Optimize hardware and cloud utilization. Push out tool and infrastructure purchases. Consolidate and put pressure on vendors to offer discounts. I frame this as, “I can’t reduce the staffing budget, but here are other areas where I can provide similar savings this year.” Instead of saying “No,” give your CEO alternatives and new options. Focus on informing vs. convincing. Every company’s CEO and CFO are taking a hard look at the technology budget, and layoffs are being discussed quarterly. Be proactive. Assume it’s coming and prepare the case now. Your team and career will be better off if you do.

I’ve been laid off three times, and one thing I know for sure: what you do before a layoff is just as important as what you do after. If you’re hit with a layoff, start here: File for unemployment immediately. Get the financial support started ASAP. Update your resume and LinkedIn profile. Highlight your recent achievements and the value you bring. Make your LinkedIn post count. Instead of just marking “Open to Work,” share the impact you’ve had, the roles you’re seeking, what excites you. Make it easy for others to understand what you do and who you do it for. And of course, be kind to yourself and take time to rest. But how do you prepare for a layoff before it happens? Never assume it won’t! Stay connected with recruiters, even if your job feels stable. This keeps your options open and strengthens your network. Update your resume quarterly. Add new achievements regularly so you don’t have to scramble. Network consistently. Build connections beyond your immediate circle, so you have a strong support network if you need it. Last but not least: start a side hustle. Not only for extra income but as a way to keep building skills independently. Corporations don’t care about you. Preparing for unexpected changes is a skill in itself. Small steps now can make all the difference when it matters most!

Layoffs are still happening in tech. The only thing you can do is make the most of it. Back when I had a 9-5, if something was amiss or caused me to think twice, I did a few things: 1. I talked to coworkers to see if they heard what I heard. This validated something was a bit off. 2. We’d make reciprocal recommendations on LinkedIn. You can make this easy by writing the copy yourself and sending it to your coworkers. Use tit-for-tat to your advantage here. 3. I’d spend a day updating my resume. These usually aren’t updated until it’s too late, which adds more pressure to an already bad situation. I’d also update my LinkedIn profile with any new info or creds which were missing. 4. I’d start interviewing with other companies. Waiting for the layoff to happen is almost always a bad idea. Worst case, this brushes up your interviewing skills, which are probably pretty rusty. Best case, it puts you in a position to accept a job when you aren’t desperate or vulnerable. Couple other notes: - The company isn’t your friend. Your friends and family are your friends. Going on interviews protects your downside — something the company you work for doesn’t have a vested interest in. - Don’t be afraid of “lateral” moves, even if it pays slightly less. You’ll sleep better at night knowing you have a job in the morning. A company hiring is usually in a much better position than one laying people off. I actually left a job prematurely before because there were a couple red flags 🚩. Nothing actually happened yet, but it caused me enough of concern to execute the above steps. It sucked, because I really liked the job and the people that I worked with. But I sensed something was off and needed to protect the downside. I wound up taking a position with another company (getting me back into Magento land!), and while that turned out to be a bad fit, I was in a better place that bought me some more time instead of sticking around with a sinking ship… one that allowed me to dictate my own future and call my own shots. And you know what? The previous company I was with started a huge round of layoffs 4 weeks later. Rinse & repeat if needed.

Here’s the one mindset shift that changed my life most. For the last 12 years, I’ve woken up every day with the thought that this would be the day I get laid off. It might sound harsh, but it’s the healthiest and most prepared approach I’ve ever adopted. This is particularly true in today’s world of staggering competition and overwhelming applicant numbers, especially in the most sought-after industries. Twelve years ago, I was laid off while living in Cambridge, Massachusetts. I spent nearly half a year unemployed, around the holidays no less, with only my partner's $20,000 graduate stipend in one of the most expensive cities in the world. It was one of the most challenging experiences of my life. I felt like I had failed and spent a lot of time wondering what I had done wrong and what my career would look like moving forward. Then, I made a decision: from that day forward, I would expect to lose my job at any moment. Not out of anxiety or fear, but as a form of preparation and realism. Companies can change for a variety of reasons - leadership shifts, mergers, market shifts - and expecting these changes has made me feel much more calm, not less. Adopting this mindset has several benefits: - Preparedness: If you assume that today might be your last at any company, your materials (CV, LinkedIn) stay updated, your networking never stops, and you’re always thinking about the next opportunity. - Financial Preparedness: Along with your professional preparedness, always ensure your finances are in order. Have savings, know what you’d do for healthcare, and plan for any gaps. This mindset isn't just about your career - it’s about your entire livelihood. - No Surprises: When you’re prepared for anything, you’re never blindsided by layoffs or changes in company direction. - No Attachment: I appreciate my jobs, but I don’t attach my identity to them. The only things I’m wedded to are my family, my friends, and my values. Companies can and do change - this mindset keeps me grounded. - Personal Brand Development: Always be developing your personal brand. Your identity should stand completely unattached from the company you work for. Build something that is entirely yours, because when that company changes or you move on, your brand stays with you. *** When people think of your name outside your company does a clear, positive picture come to mind for most of them? If not, it's time to work on this *** Consider this mindset. While it doesn't eliminate all risks, it puts you in a much stronger position to pivot when things change. Your career, personal brand, and financial future will benefit, and you’ll feel happier and calmer as a result. This approach is also grounded in reality. As we’ve seen over the last three years, layoffs can happen at any moment, often with little more than a form email, and most people at the company won’t care the day after. You’re the one who needs to be ready to respond at a moment’s notice, because nobody else will.

If someone tells you to jump into self-care  immediately after a layoff, either they've... ...never been laid off (without something lined up)  OR  aren't taking your situation as serious as it should be. Either way, it's terrible advice. Think of a LAYOFF like a burning house. IF you're house is on fire: It's shocking 100% an emergency Going to hurt financially It's absolutely NOT the time to: >> to go get a massage >> to take up goat yoga in your living room >> to dance around and sing Lizzo's "Special" for a day and take your foot off the gas And while self-care is important LATER -- it is NOT a priority when your wallpaper is curling and you're tapping doorhandles for heat on the way out. Nope. Not yet. It IS time, however, to grab your 'go bag' and 'get outta that house.' And by 'go bag' after a layoff, I mean 2 specific things: 1// YOUR CONTACTS 2// YOUR METRICS Sit down and write out everyone you know,  grab your database that you developed,  download the numbers and  wins that you generated. These things are your insurance policy for the future. They will save you in that next interview with Smith & Nephew  when they ask you "so, how much revenue/volume growth did you achieve, and how?" They'll be your lifeline after that computer is shut off and mailed back to Home Office when you're trying to network with those on the inside and sending thank you notes and reviews (Traction Clients, ikyk). (and if you're on my email list, you'll soon find out  e x a c t l y  how to do this on Saturday, too. I've got you) So grab a seat, a pen, and paper -- and write. it. all. down. This is your Exit Plan.  Your Personal Escape Hatch.  Your Fire Squad at the Ready Should the Worst Happen. And once you've done that it's self-care time. And hey, if you know that you may need this 'go bag'  what's stopping you from gathering these things before su casa is aflame? Take it from someone who's been through 5 of these. Contacts Metrics Self-Care (In that order) xo Claire