Layoffs and AI cheat sheet

1. 1What AI is really doing to tech jobsThe causes behind recent layoffs, what the evidence says about AI, and why the clearest effect so far is fewer junior hires.9 concepts

   1. 1Layoff trackersSites and reports that count announced layoffs, such as layoffs.fyi for tech companies and Challenger, Gray and Christmas for all US employers.
   2. 2Cutting staff to fund AIReducing headcount in some areas to pay for heavy spending on AI data centres, chips and teams.
   3. 3FlatteningRemoving layers of management so each manager has more reports, and some managers become individual contributors again.
   4. 4AI-washingNaming AI as the reason for layoffs that are mainly about cost, over-hiring or weak sales, because it sounds better to investors.
   5. 5The junior squeezeThe drop in hiring of early-career engineers since 2022, linked in research to AI doing more entry-level tasks.
   6. 6Task exposureHow much of a job is made of tasks that AI tools can already do well, such as boilerplate code, first drafts of tests and simple fixes.
   7. 7Substitute versus complementAI substitutes for work when it can do the task instead of a person; it complements work when it makes a person faster or better at a task that still needs…
   8. 8Adjacent skillsGrowing skills that sit next to what you already know, such as AI features for a backend developer or data pipelines for an analyst.
   9. 9DoomscrollingReading bad news for long periods, often on social media, without acting on any of it.

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2. 2Read the signals and your own exposureHow companies decide who goes, the signs that often come first, and how to score your own risk honestly.10 concepts

   1. 1How layoff lists are madeMost layoffs go from a cost target, to products, teams and locations, and only then to individual people, using reviews, cost and skills.
   2. 2Company warning signsSignals that often come before cuts: missed results, a failed funding round, new leaders brought in to simplify, reorganisations, cancelled projects and talk of…
   3. 3Hiring freezeA stop on hiring, often including backfills, which means people who leave are not replaced.
   4. 4Soft layoffPushing people to leave without a formal layoff, for example through strict return-to-office rules, forced relocation or harsher reviews.
   5. 5Team and personal signalsQuieter signs closer to you: a project losing its sponsor, a vague roadmap, work moved elsewhere, being left out of planning, or sudden requests for handover…
   6. 6Exposure auditAn honest score of your role on four things: how close your work is to revenue, how much of your week AI can do, how replaceable you are, and whether your…
   7. 7Cost centre and profit centreA profit centre earns money, such as a product customers pay for.
   8. 8Global capability centreA company's own office in another country, often India, that does engineering, operations or support for the global business.
   9. 9The benchAt services companies, the time an employee spends between client projects, still paid but not billed to a client.
   10. 10Layoff rumoursUnconfirmed talk of cuts, in anonymous forums, group chats or the office.

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3. 3Be hard to cut at workWhat makes some people harder to cut: work the business needs, visible impact, relationships beyond your manager and a clear view of your own rating.9 concepts

   1. 1Revenue-critical workWork that earns money, keeps paying customers happy, or is required by law, such as billing, the core product, security and compliance.
   2. 2Outcomes over ticketsTaking responsibility for the result the business wanted, such as fewer failed payments, not just closing the ticket that asked for a change.
   3. 3Visible impactImpact that is written down where decision makers can find it: updates, write-ups, review notes and names on launches.
   4. 4Brag documentA running list of what you did, why it mattered and the evidence, updated every week.
   5. 5Skip-level meetingA one-on-one with your manager's manager, often once a quarter.
   6. 6Domain knowledgeUnderstanding the business your code serves: how money flows, what customers need and which rules apply.
   7. 7Performance signalsThe signs of how your work is rated: the kind of work you are given, how specific feedback is, whether you are included in planning.
   8. 8Performance improvement planA formal document listing what must improve, by when and how it will be measured.
   9. 9ReputationWhat colleagues say about you when you are not there, often one sentence such as "always delivers" or "hard to work with".

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4. 4Work with AI so it raises your valueUsing AI tools well and safely, measuring what they really do for you, and keeping the skills they cannot replace.10 concepts

   1. 1Company AI policyYour employer's rules on which AI tools you may use and what data may go into them.
   2. 2AI adoption at workUsing AI tools in your daily work as a normal part of how you build, test and review.
   3. 3Evidence on AI productivityStudies that measure how much AI tools really change developer speed, as opposed to how fast people feel.
   4. 4DeskillingLosing a skill because a tool always does it for you.
   5. 5Judgement skillsSkills that decide whether code and designs are right: critical review, debugging across systems, performance reasoning and choosing what not to build.
   6. 6Building with AIEngineering that puts models into products: model calls, retrieval over company data, agents that call tools, and the cost, security and reliability around…
   7. 7EvalsTests that check whether an AI feature gives good answers, using a set of example inputs and a way to score the outputs.
   8. 8T-shaped engineerAn engineer with deep skill in one area and working knowledge of several around it.
   9. 9Learning systemA small, regular routine for learning: daily use, a weekly read, a monthly experiment, a quarterly deeper project.
   10. 10Proof of AI skillEvidence that you use AI well: a measured improvement at work, a shared setup, or a small project with an honest evaluation.

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5. 5Career insurance before you need itThe cushion that turns a layoff from a crisis into a hard month: savings, low fixed costs, a ready CV, a warm network and a yearly market check.12 concepts

   1. 1Emergency fundSavings kept only for a loss of income or a real emergency, in an account you can reach within days.
   2. 2Fixed costsBills that arrive whether you earn or not: rent, instalments, loans, subscriptions.
   3. 3RunwayHow many months you can keep going on your savings and other money before it runs out.
   4. 4Master CVA long version of your CV with every achievement, kept current, from which you cut a short version for each application.
   5. 5Portable proof of workEvidence of your skills that lives outside your employer: public projects, talks, write-ups, open source contributions.
   6. 6Warm networkPeople you have stayed in touch with and who would answer your message, as opposed to connections you never speak to.
   7. 7ReferralAn employee recommending you for a role at their company, usually through an internal system.
   8. 8Yearly market checkDoing a real or practice interview and checking pay data once a year, even when you are not looking.
   9. 9Second income streamA small extra income from freelancing, a product, teaching or content, alongside your job.
   10. 10Outside work clauseContract terms that limit work outside your job or give your employer ownership of what you build.
   11. 11Personal employment documentsDocuments about you, not the company: contract, offer letter, payslips, appraisal and promotion letters, equity grants, tax and visa papers.
   12. 12Unemployment benefitsGovernment payments to people who lost their job, available in the US, UK and much of Europe under conditions.

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6. 6If you are laid off: the first two weeksWhat to do in the meeting, what to check before signing, what you are owed, the basic rules in common countries, visa deadlines and documents.12 concepts

   1. 1The layoff meetingThe short meeting, often with HR, where you are told your job is ending.
   2. 2SeveranceMoney an employer pays when it ends your job, often in exchange for signing an agreement.
   3. 3Release of claimsA clause in a severance agreement where you give up the right to bring legal claims against the employer.
   4. 4Non-compete and non-solicitTerms that limit working for competitors, approaching clients or colleagues, or criticising the company after you leave.
   5. 5Final settlementEverything owed when you leave apart from severance: salary to the last day, notice pay, unused leave where paid out, earned bonus and expenses.
   6. 6Option exercise windowThe time you have after leaving to buy vested stock options, often 90 days.
   7. 7Gratuity and provident fundIn Pakistan and India, a lump sum based on years of service, and a retirement fund built from employee and employer contributions.
   8. 8WARN ActA US law requiring employers with 100 or more employees to give 60 days' written notice of a plant closing or mass layoff.
   9. 9Collective consultationIn the UK and EU, a required period of consultation with employee representatives before large redundancies.
   10. 10Standing Orders (Pakistan)Pakistan's main employment rules for covered workers: written termination, one month's notice or pay instead for permanent staff, gratuity, and last in, first…
   11. 11Visa grace periodThe limited time a work visa holder has after a job ends to find a new sponsor, change status or leave.
   12. 12Experience and relieving lettersLetters common in Pakistan and India confirming your dates, title and that you have been released from your duties.

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7. 7Bounce back: the search after a layoffRunning a job search after a layoff as a project: the story, the pipeline, referrals, closing skill gaps, bridge income and choosing a stable next employer.9 concepts

   1. 1Your layoff storyTwo calm, factual sentences explaining the layoff, followed by what you did next and what you want.
   2. 2Job search pipelineA tracker of every opportunity and its stage: researched, applied, referred, recruiter call, interviews, offer.
   3. 3Open to WorkA LinkedIn setting that tells recruiters, or everyone, that you are looking, with an optional green photo frame.
   4. 4Skill gapThe skills that job ads for your target role ask for most often and that you cannot yet prove.
   5. 5Bridge workShort contract or freelance work taken during a long search to pay bills and keep skills current.
   6. 6Checking a company's stabilityResearching whether the next employer is likely to cut soon: results, funding, recent layoffs and how close your team is to revenue.
   7. 7Job scamsFake job offers that try to take money or personal data, often aimed at people who have just been laid off.
   8. 8Search routineFixed working hours for the search, plus sleep, exercise, time off and people to talk to.
   9. 9ReferenceA person, usually a former manager or senior colleague, who confirms your work to a future employer.

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8. 8Glossary, A to ZEvery concept in the sheet and the smaller terms it uses, in one list.140 terms

Stay hard to cut, and recover if laid off.