Tech Layoffs Fuel Toxic Workplaces: How to Cope & Thrive

Did You Know?

Tech companies are switching gears, laying off employees instead of trying to keep them. Since the start of 2024, 135 tech companies have fired 33,874.

The impact is creating toxic work environments, with 45% of employees reporting feeling the strain, according to a TalentLMS and Culture Amp*survey. The top 3 contributors to the toxic work environment are:

1. Expecting employees to work longer hours or weekends without additional pay
2. Lack of transparency and communication from management and leadership
3. Lack of consideration and courtesy

Case Study: Richard, Head of Design

Richard is the Head of Design at a tech startup company. His fear and frustration about how he was being treated at work reached a boiling point last month. He felt part of a mob boss family where the CEO was the Godfather, wielding immense power, creating a culture of fear, and suppressing individual initiative, leading everyone to walk on eggshells around him.?

He described his day-to-day work as swimming upstream with weights tied to his ankles to improve customer experience. He knows that if he made a mistake, he’d be scapegoated faster than you can say "Lord of the Flies."??

It’s a shock, I know!?

What should Richard do?

While Richard can't single-handedly change the culture, resources are available to help navigate his situation. Here are some options he could explore.

Open Communication (if safe): He could have an honest conversation with a trusted leader to express his concerns and seek solutions.

Focus on Impact: Channel his energy into areas he can control and document his successes using business metrics his audience cares about.?

Document Issues: He could objectively and factually document inappropriate behavior for future reference. This could be helpful if he decides to report the issue or seek legal counsel.

Seek External Support: He could talk to a coach , career counselor, or therapist who can provide valuable guidance and support in navigating this difficult situation. Employee Assistance Programmes (EAP) are employee benefit programs offered by many employers and help employees deal with personal problems that might adversely impact their work performance, health, and well-being. They can provide confidential support and guidance.

Explore Other Opportunities: He could update his resume and portfolio and contact his network to see if he could attract a healthier work environment.?

External Resources?(USA)

• The National Council for Occupational Safety and Health (NIOSH ) provides information on workplace stress and how to manage it.
• The National Alliance on Mental Illness (NAMI ) offers mental health resources and support.
• The National Healthy Workplaces Initiative founded in 2003 by Dr. Mallary Tytel to help envision your full potential at work.
• The National Employment Law Project (NELP ) is a leading advocacy organization that aims to build a just and inclusive economy where all workers have expansive rights and thrive in good jobs.
• The Substance Abuse and Mental Health Services Administration (SAMHSA ) offers resources, support, outreach, and a crisis hotline for substance abuse.

???How to Apply This

Recognize the Signs Before Its Too Late

Like many creative leaders working in tech, Richard has encountered a level of toxicity at work that goes far beyond the three listed in the report* including:

Founder-Centric Culture - When a company revolves around a single individual's authority and vision, it can stifle innovation and create unhealthy dynamics.?

TIP: Learning to spot this quickly will help you manage your expectations and make informed decisions, including how and when your exit strategy will be.

Customer Disconnect - Product designers and researchers are the advocates (or proxies) for the people who use products companies sell. You enable people to extract the product's value by making it something people can and want to use.?

TIP: When the business consistently overlooks or downplays the customer's needs and concerns, you may find yourself pushing ‘pushing UX boulders up a hill daily ’. This is NOT a right of passage for creative leaders working in tech.

Blame and Scapegoating - Scapegoating is an insidious form of bullying that, left unchecked, can undermine your self-confidence and hurt your job performance. For Richard, the experience of working there was making him frustrated and messing with his head.?

Understanding Your Situation

Remember, taking care of yourself is crucial. While advocating for change is essential, prioritizing your well-being should be your top priority.?

Burnout and Stress: Working in such an environment can harm well-being, so it’s essential to prioritize self-care and actively manage stress .

Acknowledge Your Feelings: It's essential to acknowledge and validate your feelings. Working in a toxic environment can leave you feeling scared, frustrated, and even powerless. Talk to a coach or therapist to help you process these emotions and develop coping mechanisms.

???The Short Of It

Richard quit his job last week and is taking a well-deserved time out to recharge before looking for a new role in a healthier, more collaborative environment.

That’s it for this week!