The Real Layoff Lesson: Level the Playing Field

Not to jump on the “Amazon is laying off 30,000 people” bandwagon, but, it’s an important conversation. To start, my initial reaction? I think Amazon is hiding behind “thanks to AI…” as a reason for the layoffs. I’ll let other pundits determine whether it’s true (again, I don’t think it is but it’s an interesting PR move).  Instead, let’s talk about the impact on employees. How do we reduce the impact of layoffs, or getting fired or a company going out of business? Though, this may ruffle a few feathers. What the hell, let’s ruffle…

Every day on Linked In…Hustle Bros pound their chests about how many hours they work – it’s a different kind of measuring contest – safer for social media consumption – but a measuring contest none the less. They talk about PTO days not taken, sick days not used…holidays worked…KPIs crushed. “I got up at 4AM!” followed by “oh, yeah, bro?? I got up at 3:30AM!” Insert giant eye-roll.

They (the hustle bros) think they are better than the 30,000 people at Amazon. But here’s where the feather ruffling happens…they aren’t. Do we honestly think that within those 30,000 people…it was all just B and C Players? Do we think it was just people who were coasting? Not delivering value? Nary an A-Player in sight? Come on…

Ego and Wishful Thinking

Thinking 30,000 people "deserved" to be laid off is nothing more than wishful thinking and ego colliding to make up a reality we hope for. Because we’re so desperate to believe we’re in control. So desperate to believe that if we just work hard enough…work long enough…add enough value…. we’re “safe.” Here’s the harsh truth – as an employee…you are not safe. Ever. No matter how many hours you work…no matter how much value you produce…no matter how many KPIs you crush.

“But if I work 50 hours a week…I’ll be safe.” Nope. “But if I work 80 hours…100 hours…I’ll be safe!” No and no. We, as employees, are beholden to shareholder capitalism. Your executive team? They don’t care about how many hours you’re pounding…your metrics, measures or value contributions…they look at “are we going to hit numbers or not?” Are shareholders going to be happy or not.

And…let’s be really bold…executives are also thinking: ”am I going to hit my bonus numbers?” If not? Be prepared for statements like: “Well, market conditions…” or “thanks to AI…” Read:  layoffs.

What's In Your Control

Friends, this is the harsh reality of being an employee. There is no such thing as immunity. No amount of hours put in will ‘save’ you. No amount of hustling. If you’re an employee…you are at risk. At all times.  Accept that reality for what it is and instead focus on controlling what you can control. There are three things that you absolutely can control:

1. Do work that fulfills you – within the boundaries you set.

   
   

At the end of your day or week…if you can reflect and think “I did good work this week. I had grit, determination, resiliency…I moved some needles, and I stayed within my boundaries (whatever those may be…working 40 hours, 50 hours…80 hours…whatever YOUR boundaries are)? Then I’m content.” And stop being fearful. Stop looking over your shoulder. Let that anchor go because it’s not in your control. If you work 23 hours a day…you may have that a-hole boss that says “yeah, but you slacked off for one hour a day and slept. You’re fired.” Extreme example, yes.  

2. Never Stop Learning

Instead of debating the ills of various innovations like AI - learn what it is. Spend time with new things - constantly learn. Figure out how to problem solve within these new spaces. I fully believe that the skillset of tomorrow is the ability to rapidly learn, apply and distribute that knowledge. It's fine to have a concern about the new tech (again, like AI) and debate philosophies, but if you want to wrestle back control of your employment fate? Learn like your career depends on it...because it does. There will always be a job for those that can demystify new things, problem solve and teach others. That job may not look like the one you lost...but that's part of the journey and adventure. Open minds equal open opportunities.

3. Prepare for the likely event

   
   

If you haven’t been laid off or fired before…the odds are it will happen. It’s a matter of time. How do you prepare for this eventuality? Reduce expenses and create a safety net. My wife and I have a combined savings account that covers a year of our salary. It sits in a high yield savings account…not invested. Safe, and secure.

Then, once you have a safety net? Start diversifying your income streams. Interest payments? That’s an income stream. Dividends? Income. Don’t aim to cover everything…but if you can use those diversified income streams to stretch your savings even further? All the better. That extra $1,000 a month from interest and dividends? That can cover some expenses and reduce how much draw-down you must use from your emergency fund.

Yes - the plan will take time. I spent years clipping coupons, taking tax refunds and putting them into the 'rainy day' fund, years of pinching pennies to get to the point where I have a safety net. Just because it's hard (and it is) doesn't mean it isn't worth it (and again - it is).

So many of us are fearful of – the leverage our employer has over our lives. It’s not the layoff or being fired itself. Yes, that event will be stressful. It will be frustrating, disappointing, hurtful…all the emotions. But the fear comes from: will I lose my house? Will I be able to support myself? Will I go bankrupt?  You must reduce that leverage…remove that fear from the equation so you can go all-in on point number 1 – work that fulfills you within your defined boundaries.

Reduce leverage so that being laid off or fired is an inconvenience…not a detriment. Whether or not AI is coming for your job is the wrong conversation. The real conversation is…in today’s shareholder driven market – what are you doing to reduce leverage an employer has over you? How are you leveling the playing field and balancing the equation? Because today it’s “AI is coming for your job…” tomorrow? It’s something else. There will always be something else.

Fair or not…Accept reality for what it is. Set your boundaries. Do good work. Constantly learn. Make a plan. Level the playing field.