Surviving and thriving post a layoff: The 2022 edition

Imagine that you join a zoom call link and hear the dreaded words, “We regret to inform you that we are terminating your employment with immediate effect.”

In a utopian world, layoffs are rare occurrences. However, the current reality has shown multiple examples where a large number of employees within specific companies had to resign, and sometimes, even the methods for announcing the layoffs were as sudden as a zoom call.

India, one of the largest startup ecosystems in the world saw a dramatic rush for funding over the entire year of 2021. But there’s been a shift over the last few months. Besides the pandemic-induced economic slowdown, the Ukraine-Russia war and subsequent hike in fuel price, and massive increase in the interest rates of the U.S. Federal Reserve are some of the noteworthy causes that heavily contributed to the worldwide economic upheaval.

Now, with the change in the macro-economic conditions and the predicted funding winter, cost and profitability are important metrics. But is every startup layoff an inevitable fall out of this?

As per the data revealed by layoffs.fyi, a tracker that compiles public information about layoffs in start-ups, 43, 399 employees across the world have lost their jobs since April 1, 2022. Out of these, more than 13 percent were laid off by Indian start-ups.

In this financial year, most of the layoffs happened in the month of June; at least 2,261 people were forced to leave their organisations. 2,109, and 1,150 employees became unemployed in May and April, respectively, as per the data reported in The Hindu Business Line.

Whether it is about Indian unicorns or even globally renowned firms, employees from both start-ups and established entities suffered layoffs and cutbacks. More important the aggregate numbers, - let us not forget the economic as well as the emotional instability that severely impacted those who were affected. In India, sectors from healthcare to ed-tech to transportation and retail have been the effects.

However, it is important to note that despite bearing the funding slump, the overall numbers seem to be looking up.

As per TeamLease, India’s largest human resource firm, the ‘intent to hire’ by the corporates in India witnessed a 7 percent increase. The Employment Outlook Report by TeamLease for the period July-September 2022 forecasts that the intent to hire can touch or may even cross the 70 percent mark in the next few months. The reason behind this upward movement in the hiring trends is the long list of initiatives announced by the government recently. The government plans to bring the private sectors back to their pre-pandemic levels.

However, at an individual level, the impact can be deep. Let’s look at what can help.

How to deal with/survive a layoff?
Here are a few guidelines that might help facilitate your transition phase.

• Take a pause and breathe deep – A sudden pressure and sense of helplessness can force you to immediately jump into the job search process. But what’s necessary here is to catch a breath and speak with your friends and family. Remember, a layoff DOESN’T DEFINE you or your potential. Once your head is completely clear, only then can you turn adversity into an opportunity.
  

Not only read but understand your severance agreement and package – Severance pay is the monetary compensation a company offers to its employees upon their untimely termination. You can receive it either in a lump sum or in weekly/monthly instalments. All the information regarding the severance package is mentioned in the severance agreement. This is why you must carefully read even the tiniest piece of detail in it before signing it. Once signed, you cannot claim or negotiate anything. Other than negotiating money, you can also request the company to let you continue to vest your stocks, pay for your coaching or training, or cover your health insurance until you get employed again.

Invest more time in networking – The most effective way of relaunching yourself into the market is to start networking again. Just posting the news of your layoff on LinkedIn can help you seek the attention of employers. With innumerable layoffs in the last few months, the LinkedIn community is actively helping people connect with prospective hires. Along with this, a credible referral can double your chances of getting a call back from the companies you are interested in.

Upskill to bounce back stronger

– You can use this time to accomplish those things your full-time job didn’t let you. For instance, you can join an online course to upskill yourself with the skills that are high in demand. Just go through recent job openings and look for the skills that are mentioned repeatedly. Next, ask yourself if you are proficient enough in those skills or need some coaching.

The post-pandemic market is majorly being driven by the power of automation. Consequently, it has become imperative for employees to acquire the latest industry-specific knowledge and technologies.

Shantanu Rooj, CEO TeamLease Edtech, recently in an interview said that “Businesses are looking for digitally conversant, highly adaptive and multi-skilled people who can be moulded into any kind of role. Employees will need to develop not only adjacent skills but also diametrically opposite skills - combinations like technology, and creative, technology and psychology is becoming commonplace,”

Therefore, upskilling might be the only way to survive layoffs and attain an elevated role within your profession or in a different field altogether.

Layoffs must not lead you to lay off, it’s just a phase which too shall pass.

Last and not the least, financial planning plays a key role in navigating through these times.