What to Know About Applying to Companies That Just Had Layoffs

By Andrew Seaman

Job seekers may be confused by today's labor market. Headlines show that big and small companies are laying off workers. Yet, it's still a historically tight labor market. Even companies that recently let go of workers are still hiring.

For example, Amazon recently announced layoffs. The company said it would lay off 9,000 workers in addition to the 18,000 employees it already let go. While those numbers are large, they represent less than 2% of the 1.5 million workers the company employed at the end of 2022. The tech giant, which took the top spot on our U.S. Top Companies list this year, is still hiring for thousands of positions, though.

Companies — especially larger ones —?are able to be strategic with layoffs, meaning they can cut staff in an underperforming part of the business while hiring where there's growth, says Brittney Swan, who is a recruiter and resume writer.

"It is more divisional than it is the company," she adds.

The complexity of today's labor market means that many job seekers can actually learn about a potential employer if they recently laid off workers.

Can You Tell if an Open Role Is Safe From Layoffs?

A job seeker — or even a current employee — can rarely ever guarantee that a role is safe from layoffs, but Swan says there are questions they can ask that will provide some peace of mind.

Once a job seeker knows of an open role at a company that aligns with their skills and needs, she says they can start digging into some important questions:

• When was the last time the company laid off workers?
• Is there funding for the division that will lead to growth?
• Are there other parts of the business where your talents can be used if there are cuts?

Answering those questions and others that are specific to the role or company can offer some assurance that the job will be safe in the near future.

Additionally, Swan says job seekers can ask the recruiter about the health of the division. They can also ask if the contract includes a stipulation that they receive pay even if their position is eliminated shortly after accepting the offer.

"There's no magic button that's gonna tell you that there's going to be layoffs," says Swan. "But, if you do your research and say, 'this is a department that seems to be safe,' or 'this is the division that seems to be scaling,' you're making the right decision."

Do Layoffs Speak to a Company's Culture?

The fact that a company reduced its workforce — by itself — does not mean it has a bad workplace culture, but the vast majority of people agree that how a business conducts layoffs does tell a person how the employer treats its workers.

A recent poll of LinkedIn members found that 94% said job seekers can learn about a company's culture based on how it conducted recent layoffs. Meanwhile, 3% said there's no connection between the two. The other 3% were unsure.

Several companies have received blowback over the past several months based on how they conducted layoffs.?

One extreme example is United Furniture Industries' decision in November to lay off all of its employees via email without warning.??

While layoffs are never welcome events, they are a reality of business. LinkedIn News asked members with human resource experience to weigh in on the elements of a fair and compassionate layoff process.

The consensus was clear that the process should start with clear and empathetic communication from the employer.

"Inform the staff beforehand that [the] company is preparing for layoffs and do it via video calls or personal meeting," writes Chaitali Thakkar, who works in corporate recruiting. "This makes the employees seen and heard and not considered just a number."

Companies should also provide affected employees with helpful resources ranging from severance packages to career assistance.

Tensions can be eased by offering resume writing help, interview coaching and other services, writes Margie Neal, who works in recruiting and talent acquisition. "Lastly, severance based on length of employment is fair, and providing a month of COBRA can help employees transition with less trauma."

Doug Younts, who works in corporate recruiting, writes that layoffs are difficult decisions that companies sometimes have to make. "However, it's important for companies to handle these situations with sensitivity and compassion, and to do everything they can to support their employees during this difficult time."

• Have you applied to an open role at an employer that recently conducted layoffs? Tell us why or why not in the comments below.