The Truth About Layoffs in 2025 No One Is Telling You | Tech Layoffs 2025

Summary

The video addresses the rise in tech sector layoffs and offers practical strategies to safeguard your job. It discusses how companies make layoff decisions and introduces the SAFE framework (Ship valuable work, Automate, Focus on revenue and cost reduction, and Evidence everything) to make employees indispensable. The video also provides a 7-30-60 day action plan for those feeling vulnerable, along with advice for senior leaders to increase influence and avoid becoming 'PowerPoint leaders.' Lastly, it emphasizes building a financial safety net and maintaining mental resilience in uncertain times.

Takeaways

• 😀 Layoffs in the tech industry are a recurring challenge, but they are part of a predictable cycle driven by business algorithms.
• 😀 Employees at risk of layoffs often fall into categories like having outdated skills, being underutilized, or lacking impact in their roles.
• 😀 To avoid layoffs, focus on the SAFE framework: Ship valuable work, Automate tasks, Focus on business priorities, and Evidence everything.
• 😀 The 7-30-60 day action plan emphasizes stabilizing your position, delivering value, and having a backup plan ready in case layoffs happen.
• 😀 Vulnerable employees tend to have long periods without projects, low utilization rates, and legacy skills not aligned with current technology demands.
• 😀 Senior employees and those who rely on PowerPoint presentations rather than real results risk becoming obsolete in their roles.
• 😀 The SAFE framework encourages professionals to continuously prove their relevance by aligning their work with revenue generation and risk reduction.
• 😀 If layoffs seem inevitable, build a cash runway for 3-6 months of expenses and activate your professional network for support and opportunities.
• 😀 Focus on action rather than overthinking; clarity comes from taking control of what is within your influence and letting go of external factors.
• 😀 Employees should continually document their impact and align their work with key business objectives like cost reduction, efficiency, and revenue growth.
• 😀 Mental preparation for layoffs involves managing uncertainty, taking practical steps like saving and networking, and maintaining a proactive mindset.

Q & A

What factors are causing layoffs in the tech sector in 2025?

The primary factors are geopolitical instability and global conflicts, which are impacting businesses and their growth. Companies are optimizing costs to align with their revenue generation, particularly focusing on bench strength, skills, middle management, and unprofitable teams or products.

How do large IT companies typically decide who to lay off?

Companies look at various factors like revenue generation, employee skills (future-proof or legacy skills), and tangible impact on the company's bottom line. They also evaluate if employees are generating revenue, reducing risks, or creating value. Middle management and roles not directly tied to revenue are often considered at risk.

What are the key signs that someone might be at risk of being laid off?

Key signs include sitting on the bench for extended periods without active project assignments, low utilization rates, working on unprofitable products or services, involvement in non-technology-related tasks, lack of AI awareness, and not having measurable impacts on the company's operations.

What is the 'SAFE framework' and how can it help employees avoid layoffs?

The SAFE framework stands for Ship Valuable Work, Automate Ruthlessly, Focus on Revenue/Risk/Run Cost, and Evidence Everything. This approach emphasizes making yourself indispensable by delivering impactful work, automating tasks, contributing to revenue generation or cost reduction, and documenting your achievements to showcase value.

What are some immediate actions an employee can take if they feel vulnerable to layoffs in the short term?

In the first 7 days, employees should stabilize their position by having a conversation with their manager about utilization and future roles. By day 30, they should deliver proof of value by taking initiative, helping with struggling projects, and upskilling in critical areas. By day 60, they should aim to secure their role or start considering Plan B.

How can an employee activate Plan B if they believe they might be laid off?

Employees should build a portfolio showcasing their work and skills, reach out to their network, and express their availability for new projects. They should also focus on creating a cash runway to ensure financial stability and start looking for work opportunities, either within or outside the organization.

What does it mean to be a 'PowerPoint leader,' and how can senior employees avoid this?

A 'PowerPoint leader' refers to a senior employee who only participates in meetings without delivering tangible results. To avoid this, they should flatten the organization by increasing their influence, create ownership metrics, showcase before-and-after results, and reduce unnecessary meetings.

Why is it crucial for employees to document their work and how can this help in avoiding layoffs?

Documenting work is essential because it provides evidence of an employee's impact. It helps demonstrate their value to management and showcases their contributions, making it easier for companies to justify retaining them during cost-cutting decisions.

How can an employee focus on 'revenue, risk, and run cost' in their work?

Employees should align their work with one of these three areas: generating revenue, reducing risks, or lowering operational costs. This focus ensures that their efforts directly contribute to the company's financial health, making them indispensable during layoffs.

What is the importance of flexibility in an employee’s role during times of potential layoffs?

Flexibility is crucial because it signals to managers that an employee is adaptable and can fit into various roles within the organization. This openness increases the chances of being retained during restructuring, as managers have more options to place the employee in different projects.