Layoffs and AI: stay hard to cut, bounce back if it happens

Stage 2 · Lesson 1 of 6

How layoff lists are actually made

Read the signals and your own exposure

Most layoffs are decided top down. Leadership sets a cost target, often as a percentage. Finance and senior leaders then decide which products, teams and locations to shrink or close, and only then which people.

That is why whole teams often go together, regardless of how good each person is. Within teams that shrink rather than close, managers usually rank people using recent reviews, cost, skills that are hard to replace and who the team needs next year.

Some countries have rules: Pakistan's favour last in, first out within a category, and EU law makes employers explain their selection criteria to worker representatives.

Common trapthinking it is all about individual performance. Where you sit in the company often matters as much as how well you do your job.

A question to check yourself, an AI practice session and 1 cheat sheet entry come when you add the roadmap to your account. Add it

Resources for this stage

Start with

  • GuideFree
    The Pragmatic Engineer

    Gergely Orosz

    Free posts that explain how tech companies plan cuts, reorganise and decide headcount

Keep handy

  • Anonymous posts from employees: useful signals, but check them before you act

Also worth your time

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