Layoffs is something which affects many of us, is it the new normal. With the global pandemic and the economic impact, layoffs have become a common occurrence. But what does this mean for families? How does it affect relationships and mental health?

First, it’s important to understand that layoffs are not the same as job loss. While some companies may decide to downsize, cut costs, or adapt to the new reality, layoffs are typically involuntary and can be a significant stressor for individuals and their families.

In the new normal, families facing layoffs may experience a range of emotions. Some may feel relieved that their job is safe, while others may feel overwhelmed and anxious about their financial future. The impact on relationships can also vary. Some families may become more supportive of each other, while others may struggle to maintain communication and emotional balance.

It’s essential to remember that layoffs are not your fault and don’t define your worth as a person. Reach out to friends, family, or a mental health professional for support during this time. Many resources are available, including helplines, support groups, and counseling services.

Since the commencement of rising interest rates, corporate expenditures have surged significantly. Consequently, companies have been compelled to consider cost-cutting measures and long-term savings strategies. We frequently witness major technology firms announcing layoffs, and there are also less publicized instances where individuals are impacted. In such cases, corporate decisions can lead to consequences for employees, as leaders prioritize their personal growth, often at the expense of the workforce.

“Someone makes money, directly or indirectly and the net result is excess capacity leading to layoffs.”

This could encompass actions such as acquiring a new company or routinely reorganizing departments on an annual basis. These actions have varying degrees of impact on individuals within the organization. For instance, when internal personnel are appointed to lead these departments, it may involve displacing those who do not conform to a “yes-men” mentality. Ultimately, these decisions can lead to financial gains, either directly or indirectly, but often result in a surplus of workforce capacity, which in turn can result in staff layoffs.

Have those in leadership faced scrutiny over these choices? How often have they conducted post-purchase evaluations and held individuals accountable for misguided decisions? I’ve witnessed various companies acquire other entities, only to later write them off or sell them at a loss. The initial purchase typically triggers celebrations and promotions for key decision-makers, accompanied by substantial salary increases and bonuses.

Yet, when these acquisitions fail to yield the anticipated dividends or outcomes, is anyone held responsible? Are there consequences for these erroneous decisions? Sadly, it seems that the only individuals bearing the brunt of such mistakes are the dedicated employees who had no involvement in the purchase. They find themselves penalized through layoffs resulting from these choices.

“The worst of all is the healthcare. Having no coverage post layoff people avoid going to doctors.”

Effect on People who stay back and those who go.

The initial group affected comprises those who have been laid off. For them, embarking on a job search is far from a simple endeavor. These individuals must continue to manage their financial obligations, including mortgages, car payments, and insurance premiums. The most concerning aspect is healthcare; post-layoff, people often forego seeking medical attention due to the lack of coverage. This neglect of preventative care can lead to health complications later in life.

Some layoffs may require families to relocate in search of new job opportunities. This disrupts children’s education and social circles, adding another layer of stress. Kids and adults often get anxiety and depression issues as they lose their friends circle.

The second group of individuals feeling the impact are those who remain with the company. The tasks and responsibilities of the laid-off workers are now transferred to these employees. Consider the strain on someone who is already pushing their limits to meet targets and fulfill their duties; taking on this added responsibility can significantly impact their overall time management and well-being.

Tension leading to layoffs.

Typically, layoffs are announced well in advance, triggering a period of heightened uncertainty and stress among all employees. During this time, individuals grapple with questions like, “Will I be affected? Will I remain employed, or will I be let go?” This uncertainty can sometimes lead to paranoia, pushing employees to work harder in an effort to secure their positions. Unfortunately, job performance is often overlooked in this process.

The lead-up to layoffs can be particularly distressing. Some individuals are subtly made to feel undervalued and less essential to ongoing projects. This groundwork is laid to minimize the potential for employees to seek remediation or question the decisions made. Tactics may include inserting additional comments about perceived shortcomings discussed in one-on-one meetings or added to performance reviews. The underlying intention is to discourage employees from challenging or questioning the decisions in any manner.

“Idea being that people accept their fate and do not question the decision in any share or form.”

The D-Day.

Individuals receive notices about their employment status through emails or phone calls, and they are informed about their fate. In some cases, fortunate employees receive a severance package, while others may not be as fortunate and are abruptly let go with minimal compensation.

The anticipation and anxiety surrounding the possibility of being laid off dissipate when the actual event occurs. The initial stress that had been building up is finally relieved since the uncertainty is resolved. However, it’s important to note that the subsequent stress of job hunting and financial concerns remains, and it can be just as significant, if not more so.

Layoffs can also lead to social isolation for the individual or the family. The stigma associated with layoffs leads the individuals and families to withdraw themselves from the social fabric around them. Social activities and interactions are curtailed further leading to isolation and depression.

“Not that the subsequent stress of searching for a job or about finances would be any less.”

Conclusion

The experience of layoffs has become an unfamiliar and demanding reality for numerous families. In such circumstances, it’s crucial to prioritize open communication, practice self-care, and provide mutual support. Always keep in mind that you’re not traversing this path alone, and there are available resources to assist you in navigating these challenging times.

No matter what you do, or how much effort you invest, at some point, the possibility of facing layoffs looms over your career. While you might consider yourself fortunate if it arrives later, chances are it will be part of your professional journey. There’s no need to stress excessively about layoffs because they are bound to happen, and individual performance often doesn’t play a significant role in the outcome. Those in close proximity to management tend to have better odds of being retained, while those who keep a low profile or avoid making waves are more vulnerable.

It’s essential to view your job as just that—a job. Avoid the urge to overexert yourself. Your family should take precedence, so prioritize taking care of them. Employers might not hesitate to let you go, but your family would be the ones profoundly affected if something were to happen to you. It’s wise not to take your job personally, as employers often don’t.