What to Do if Your Company Is Downsizing

We sometimes see headlines about companies that are downsizing due to one reason or another. Oftentimes, this means layoffs, which affect not only the employees who were let go but also those who remain at the company. Those who still work for the organization need to ask how their jobs will change as a result of the workforce reduction. Also, practice self-care when possible and ask for transparency from management.

By Lora Korpar

Company downsizing is difficult not just for the laid-off employees, but also for those who remain. Navigating a reduced workforce can be stressful.

Companies like Amazon, Twitter, Netflix and Peloton have laid off thousands of employees in the past few months. Crunchbase reported more than 73,000 U.S. tech workers were laid off as of mid-November.

Mass layoffs often lead to internal shifting in company structures and job descriptions. This can create more work for a smaller number of employees.

“When you're not impacted by a layoff, you think, ‘I wasn't laid off. Now what?’ just like when you are laid off,” said Natasha Bowman , founder of The Bowman Foundation for Workplace Equity and Mental Wellness.?

Which Questions Should You Ask After Downsizing?

Meet with your manager after the company downsizes. Come prepared with questions about how your company and job will change.

“Questions should have to do with how it's going to impact your team's workload, and what, if any, changes might happen to the strategic direction of the company, of the department, or of the team,” said a workplace culture coach, Julia Locklear .

You might also be worried about your future job security because the company could do another round of layoffs. Don’t be afraid to ask your manager about job security.

“You should also understand the ‘why’ behind the layoff. Who did they select and why?” Bowman said. “That should help you to sit down with your manager or your team and say, ‘Hey, let's ensure that we are not part of the next round of layoffs, or that we are doing everything we can to prevent layoffs in the future.’”

Tell your manager the responsibilities you can take on if need be. This can allow you to up-skill while filling the gap your laid-off co-worker created.

“Look at what cost-cutting measures [you could] suggest for the organization,” Bowman added. “Maybe we're wasting money on that, or we could be expanding roles here… Make those suggestions to your manager [to show] you're proactive and ensuring there's stability and security in your job.”

Ask for a new written job description to understand the employer’s expectations. However, be careful about taking on too much work. Understand your limitations.

“Unfortunately, a lot of times what happens is the workforce is downsized, but the work isn't,” Locklear said. “So more often than not, those who are left behind end up having to take on an inordinate amount of work, which does not help the morale of people who are already feeling down because they've lost co-workers.?

“Everyone is going to have different limitations. It's going to depend on their job level, whether they're managing other people or not, even the commute times. A lot of things factor into what's too much for any one worker.”?

How to Handle the Stress of Downsizing

Downsizing causes mental health strain on everyone involved. Being one of the workers not laid off is a relief, but can also cause guilt and uncertainty over your career’s future.?

Speaking with a manager about your job security helps, but it is always beneficial to prepare for worst-case scenarios. Prepare for a potential future layoff by updating your resume, maintaining a professional network, and building emergency savings.

“Job uncertainty and insecurity can lead to anxiety, depression, and other mental health issues,” Bowman said, “But worrying about an impending job elimination won't change the actual circumstance. So be proactive and prepare for it so you worry less. Talk to an [Employee Assistance Program] if you need guidance or coping strategies for what's going on in the economic environment.”

Locklear said it is important to understand your unique stress triggers and how to respond to them.

“People respond to different kinds of stress in different ways,” Locklear said. “I also think understanding that there will always be stress in our lives is important, but it's understanding what stress is normal or expected versus what stress is extra.”

How to Make Downsizing Easier on Employees

Employers also have a part to play in making downsizing less stressful for their employees. Transparency and communication with your team are key to making them feel calmer.

“I've survived five — maybe six — different layoffs at different companies throughout my career, and the companies that clearly communicated what was happening, why it was happening, and what was next, that went a long way to helping to keep things steady for the folks that remained,” Locklear said.?

“Be transparent if there's more layoffs to come, the why, and when they may happen,” Bowman added. “Also, a lot of times when we don't involve employees and we're making decisions autonomously as leaders, we miss opportunities. Don't miss an opportunity to engage your workforce during this time. It builds trust, builds commitment, and you just may find some hidden value.”?

Layoffs affect everyone’s mental health, so provide services to assist your employees.

“Give the employees who are left space to grieve the folks who are gone,” Locklear said. “When I was in a position of leadership and layoffs occurred, my team was not impacted, but a lot of other folks that people on my team had known and worked with for four or five years and would consider friends were impacted. I gave them the rest of the day off. It was a small thing, but it at least acknowledged they're not going to be focused on work anyway and that it was OK to feel good that you still have a job, but feel bad for your friends who don't.”?

(A version of this article first appeared on November 28, 2022, on the Get Ahead by LinkedIn News page. You can read the full article written and reported by Lora Korpar by clicking here .)

Your network is the fuel that moves your career forward. Yet, so many people neglect their network until they need to use it as a support system. You really should be paying attention to your network throughout your career — in good times and bad. On the latest episode of the Get Hired podcast, career coach and networking expert Diana Yuen Kei Chan Chan joined me in the studio to talk about how you can foster your network the right way. You can read a transcript of the conversation by clicking here . You can also listen below or by clicking here .

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(Additional editing by Ciarra Maraj .)