#547
Context:- Layoff/ Retrenchment are now order of the day. I read Samsung India has plans to let go 1500 Tech People or so. That triggered my memories back to 2008-10 financial crisis and the tough time we all had. Hence this post.
In today’s unpredictable world, layoffs have become a brutal reality. Poor leadership, irrational growth strategies, and short-sighted decisions lead to overstaffing, and when it’s time to cut costs, the axe inevitably falls. As someone who has faced this harsh reality head-on during the 2007-09 financial crisis, I can say one thing with certainty: surviving a layoff is less about luck and more about strategy.
Let me take you back to those days when my business was down by a staggering 74%. In most cases, layoffs start when there’s just a 5% downturn. So, you can imagine the bloodbath we faced. The lessons I learned during that time not only helped me survive the crisis but also gave me the resilience to quit corporate life and strike out on my own three years later. Here's what I did, and what I recommend if you're in the "steel cage" of today's cutthroat corporate world, where very few emerge unscathed.
1) Stand and Deliver Results, Every Single Time
When layoffs are looming, it’s not enough to simply meet expectations—you need to exceed them. Deliver your projects ahead of schedule and under budget. Make yourself indispensable by being the person who consistently produces results, even when everything else is falling apart. The last man standing is often the one who has proven themselves time and time again, without fail.
In 2008, I remember working 100-hour weeks, but it wasn’t just about clocking hours. I knew I had to show tangible outcomes to protect my position, which is how we were able to withstand the worst of the crisis. It was a grind, but the rewards were clear: I survived when many others didn’t.
2) Keep an Ear to the Ground
Knowledge is power, especially in uncertain times. Develop relationships with decision-makers and stay plugged into what’s happening at the top. This isn’t about office politics; it’s about being in the know and building trust with those who have the power to make decisions. Trading favors and developing those connections may not save you forever, but it gives you a better shot when layoffs start.
My network, built over years of genuine relationships, kept me informed of what was coming. I wasn’t blindsided, and that made all the difference. This foresight allowed me to position myself better in the organization, knowing when to ramp up my efforts and when to start seeking alternatives.
3) Build Up Skills—On the Company’s D(T)ime
When business takes a nosedive, it’s no secret that people start looking for greener pastures. This is also the perfect time to build up your skills. Take advantage of every training opportunity, certification, or project that enhances your marketability. No one will begrudge you for upskilling when times are tough. Plus, as you deliver results, you’re also positioning yourself for better opportunities elsewhere.
During the downturn, I aggressively pursued skill development. By the time things started improving, I had amassed enough expertise to be valuable, whether inside the company or beyond. That’s also when I began planning my exit from corporate life. I didn't just survive; I used the downtime to prepare for my next leap.
4) Cut the Splurge and Build a Cushion
Financial discipline is critical. When layoffs start, one of the worst things that can happen is being financially unprepared. Aim to save at least six months of take-home pay to tide you over if the worst happens. This gives you breathing space to assess your options without panicking.
Personally, cutting non-essential expenses gave me the flexibility to manage my life when the situation was grim. Even though I did well enough to dodge the layoff bullet, knowing I had that financial cushion brought peace of mind that allowed me to focus on delivering results and staying ahead.
5) Get the Family Onboard
Your career is important, but so is your family. Keep them in the loop, but only as much as necessary. Panic or anxiety at home can spill over into your work life. Having your family’s support, and preparing them for any possible transitions, will help reduce stress. My family knew enough to understand the stakes, and their support made it easier to navigate those tough times.
6) Stay Resilient, But Be Ready for Change
Sometimes, despite your best efforts, you can’t control the outcome. That’s when resilience becomes your best ally. My journey through the financial crisis prepared me to quit corporate life altogether and start my own venture. Not everyone will take the same path, but being mentally and emotionally prepared for change can be a lifesaver.
If layoffs do happen, take it as a signal to reflect, regroup, and come back stronger. In 2012, I was able to walk away from the corporate world, not because I had to, but because I was ready.
Conclusion
In the steel cage death match of corporate layoffs, the last man standing isn’t just lucky—it’s the person who stands tall, delivers results, builds relationships, keeps learning, and prepares for the worst. Surviving a layoff is part preparation, part execution, and part resilience.
We’ve all seen colleagues, friends, and family members who’ve been caught in the crossfire of poor management decisions and irrational exuberance over growth. But you don’t have to be a victim of circumstance. Immunize yourself by standing out, staying informed, saving smartly, and, most importantly, being resilient in the face of uncertainty.
In the end, survival isn’t just about being the best; it’s about being ready when the inevitable comes knocking.
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Real Life cases:- (People who relished adversity, but stand and delivered!).
1) Satya Nadella (Microsoft)
Before becoming Microsoft’s CEO, Satya Nadella navigated several waves of layoffs, particularly during the company's transition in the late 2000s. Microsoft faced massive restructuring as it struggled to catch up in the mobile and cloud space. Nadella, who was in charge of cloud and enterprise services, stood out by delivering results, driving key initiatives, and adapting to market changes, which ultimately set him up for leadership despite turmoil in the tech industry. His journey is a testament to resilience, adaptability, and delivering results when times are tough.
2) Sundar Pichai (Google)
Sundar Pichai’s rise to the CEO of Google happened amidst a tumultuous period for the company, especially with the growth of mobile technology and stiff competition from Apple and Facebook. Despite Google facing slowdowns in various ventures, Pichai delivered innovation by spearheading projects like Google Chrome and Google Apps, which became game-changers. His ability to focus on long-term solutions and adapt during times of challenge helped him rise through the ranks when many were struggling.
3) Airbnb Layoffs During the COVID-19 Pandemic
When the COVID-19 pandemic hit, Airbnb had to lay off about 25% of its workforce. Yet, CEO Brian Chesky made the process more humane by offering severance packages, health insurance, and even support in finding new jobs for those laid off. What stands out is how some employees were able to pivot their careers during this time. Many who were part of Airbnb’s core teams found freelance or consulting gigs, leveraging their networks and specialized skills to land on their feet even as the company contracted.
4) Vishal Sikka (Infosys)
At Infosys, Vishal Sikka faced immense pressure when the company was undergoing structural changes to adapt to the cloud and AI-driven services. Amid layoffs, he championed automation and AI development, which helped retain his position during tough times. However, his tenure was also marked by corporate infighting, which led to his resignation. Sikka's case highlights how internal politics and pressure can shape career outcomes despite your performance—making networking and managing relationships as crucial as delivering results.
5) My Own Story: Furloughs and Zero Travel
To add a personal touch, I remember when I faced furloughs and travel restrictions for 17 months (2008)during the downturn, even though global travel made up 80% of my core work. With no travel, I had to find alternate ways to deliver results, whether through virtual meetings, remote collaborations, or creative problem-solving. It wasn’t easy, but it was possible because I focused on solutions rather than limitations. The lesson here is that when one door closes, you have to find another way in. That makes you tough, bring it on!!
Karthik
Friday the 13th, (!!) 2024.
9am.
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