6 Warning Signs Your Job is in Danger
Although tech employment remains strong, big firms such as Nokia, Microsoft, IBM and Twitter have recently slashed jobs; tech startups face financial headwinds that will only intensify if the economy sputters. With that in mind, here are some ways to recognize the telltale signs of a layoff—and what you should do now to prepare for the future. Don't get so absorbed with everyday issues that you overlook these clues that indicate potential problems down the road. Ideally, you’d like to have a three-month head start before you receive a pink slip. (Note: In some cases, employers are required to provide 60 days’ notice.) Wall Street Cues If you work for a public company, declining stock prices, earnings shortfalls, and downgrades by analysts should sound an alarm bell. “They’re the canary in the coal mine,” said Darren Kimball, a former Wall Street securities analyst who is now CEO of outplacement firm The Five O'Clock Club. Budget Cuts Before they resort to layoffs, executives often try to course-correct by slashing expenses. Freezes on travel, software and system upgrades, and hiring indicate that things aren’t going well. Circle the wagons if management makes deeper, more severe cost cuts. Management Turmoil Management shake-ups, infighting, and dissention among directors often beget “strategic reorganizations” within the next few weeks or months. “Plus, it’s hard to gain traction if your boss keeps changing,” noted Connie Brock, a career advisor with Silicon Valley networking organization ProMatch. Even if you have a stellar track record, you may end up viewed as “expendable” by a new boss who’s on a clean-up mission. Cyclical Downswing While the whole tech industry is known for rabid competition (and equally rapid obsolescence cycles), subsectors such as semiconductors and hardware are the most vulnerable to sudden shifts. A decline in customer activity and new orders, or sudden tightening of credit markets, may produce layoffs within 30 days in a cyclical company. Outsourcing Clues Even in organizations with healthy top and bottom lines, your job may be in jeopardy if management decides to move infrastructure to the cloud or replace tenured employees with lower-cost workers. Be on the lookout for meetings between management and outsourcing vendors and budget changes to foresee what's ahead.