This cost-reducing measure has invoked a sense of panic among skilled workers. However, there is still hope. Mass layoffs can also be a chance for individuals to explore other career opportunities. It’s not the first time mass layoffs are taking place. The labour market always finds a way to bounce back.
The most striking of all the mass layoffs has to be Twitter’s. Nearly half of the entire workforce had to face the harsh reality of unemployment. There can be many reasons for the layoffs. Inflation is one of them, and so is development in automation technology. The focus should be on what comes next. It is expected that more downsizing will occur in 2023. Companies are also implementing hiring freezes to address the problem at hand. These layoffs can impact employees on financial and psychological levels. There is never a simple solution to unemployment. However, some light needs to be shed on how people can move on from this setback. Job insecurity can be a terrifying reality for anyone facing termination.
Is There A Way Out?
The grim reality of mass layoffs can also be explained by the advancements in the automation sector. In August 2022, the Ford Motor Company declared that it would be letting go of thousands of employees as a result of decreased demand of labour in the manufacture of electric cars. This signals a future where automation technology will replace more skilled workers. However, there will still be plenty of job opportunities for people. It would simply bring reform in the labour market. This type of technology should be welcomed as it takes on the task of redundant routine work and helps people discover new avenues for career development. It should be viewed as an opportunity for people to get creative.
A 2013 study on the link between automation and employment opportunities predicted that approximately 47 percent of the complete employment in the US is at risk of losing employment as a result of automation. This statistic may be revolting, but hope is not all lost. Increased reliance on automation will pave the path for more job opportunities in Tech Management. People and technology have an interdependent relationship, and tech will always require human expertise to work efficiently. Automation cannot and will not replace careers that require skills unique to humans. Apart from management, there is a wide range of options to choose from. Mainly creative opportunities such as marketing strategy or the creative arts.
With marketing strategy, communication and networking will always be essential. It is possible to make successful careers out of management as it will always require a human element.
Navigating Through The Aftermath….
The mass layoffs have certainly been hard on everyone, and it’s not an easy job to navigate through the aftermath. It may help people find better and more creative options to pursue. For people working in IT, the layoffs will direct them to seek opportunities in other industries. Every industry today requires IT skills. From healthcare to retail, there are opportunities everywhere. Automation tech will take time to completely overtake these industries. We do not know what the future job market will look like, but there is the certainty that new jobs will emerge which will make use of core human skills like communication and management.
The digitalization of companies has paved the path for more creative opportunities. This will continue to increase in the future, opening up new positions. The domino effect caused by recent Layoffs calls for comparison in the ways this was brought on about. For twitter employees, it was a blunt process involving an email. This resulted in Twitter employees filing a lawsuit against the company. It is shocking that a company as big as Twitter would enact such a weak termination plan. Career Transition Support should be the consideration of any company, big or small, planning to lay off its workforce. Severance packages are the bare minimum. Companies must actively work towards helping former employees deal with the rough transition. However, it seems that companies are taking an impersonal way of going about this.
What To Expect?
Apart from employee well-being, the reputation and integrity of a company should also be a consideration when executing termination plans. Ever since Elon Musk took over Twitter, many users have left the platform in protest. Some Twitter employees have even offered their resignations. The mass layoffs have sparked intense debates within the tech community. Musk’s controversial take on remote work has made headlines. Employee termination plans can affect the reputation of the company long-term. In 2023, employees should brace themselves for more expected downsizing. Other companies like Amazon, Shopify and Microsoft have reportedly confirmed the expected layoffs in 2023. Outplacement services for the affected employees should be the main priority for these companies. Companies should work out a plan that addresses issues associated with career transition.
Mass Layoffs: Lessons To Be Learned?
If there are any lessons to be learned from the recent mass layoffs, it’s that companies should focus on the legal issues associated with mass layoffs, there should also be timely communication regarding the termination and lastly, making sure that employees have continued access to benefits like health insurance. It is the responsibility of any big or small company to have a plan ready when making decisions as impactful as this one.