What to Do If Your Company Is Downsizing
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What to Do If Your Company Is Downsizing

Downsizing is difficult for everyone, so the remaining employees should ask how their job will change. Be prepared to take on former co-workers’ responsibilities, but know your limits. Practice self-care, prepare for worst-case scenarios, and ask for transparency from management to reduce stress.

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.

Layoffs are hard for everyone in the company, so it is important to know how to react and move forward.

Which Questions Should You Ask Your Manager 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.”?

The conversation with your manager is the best time to mention if you are worried about taking on too much.

“If you've been told that your role is expanding and you don't think you have the capacity to take on the role of a whole extra person, talk to them about ‘How do we split this role? How do I take on these responsibilities without being overwhelmed?’ Let's talk about priorities,” Bowman said. “Don't be so scared of, ‘I'm going to lose my job, so I have to take on all these responsibilities, otherwise I don't seem committed and loyal,’ because… from a mental health standpoint, you're going to burn out and that's going to affect your performance.”

How to Handle the Stress of Company Downsizing

Downsizing causes mental health strain on everyone involved. Being one of the workers not laid off is a relief, but can also cause 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.”

Manage stress by engaging in activities you enjoy. Make time for hobbies, and don’t allow yourself to think about work during this time. Practicing self-care techniques like mindfulness and grounding can also help with stress.

“Be able to pay attention to the signs from your body,” Locklear said. “Our bodies will tell us when we're under too much stress. And if we don't pay attention, our bodies will make us pay attention to those signs at some point. So make sure that you're managing stress on an ongoing basis, rather than trying to do it when you're too stressed.”

Numerous workers holding cardboard boxes walk in a single line as they exit the office.

How Managers Can 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.”?

“If you have therapy on demand, reinforce and do what you can do to promote [employee] mental health to make sure that they're not going to experience burnout and that they are taking care of themselves through these difficult times,” Bowman said. “And once the employees understand that you're taking care of them emotionally, it takes that anxiety and uncertainty away, and you'll find yourself being able to work with your employees to shift back to some sort of normalcy a little quicker.”?

Top Takeaways

What to Do If You’re Not the One Laid Off

  • Ask your manager how your position will change in a downsized workplace and ask for a new job description in writing.
  • Ask your manager why the layoff happened to understand how to lessen the chance of being laid off in a potential future wave.
  • Understand your limits to know when an employer is asking you to take on too much work.
  • Handle the uncertainty of company downsizing by preparing yourself for a potential layoff. Also, practice self-care to manage stress.
  • Employers must be transparent when speaking about why the layoff happened and try to involve employees in future decisions.

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