Stage 2 · Lesson 1 of 6
How layoff lists are actually made
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
- GuideFreeThe Pragmatic Engineer
Gergely Orosz
Free posts that explain how tech companies plan cuts, reorganise and decide headcount
Keep handy
Also worth your time
Questions that get your manager talking about priorities and the next quarter
- r/ExperiencedDevsGo deeper
How experienced engineers read reorganisations and decide when to move