To say the least, losing your job can be upsetting. It can be especially painful for workers who have never been laid off.
Shamari Coleman never imagined herself as someone who would be laid off. However, five months after starting a product-marketing position at multinational tech firm AvePoint, the 28-year-old found herself unemployed in September 2022.
“I loved the team I was working with and the culture that was fostered there,” says Coleman, who is based in New Jersey. “It was my first experience working at a large tech firm, and I felt like I’d be there as long as they needed me.”
However, five months later, she awoke to an email from the CEO informing her that they had decided to lay off 5% of their workforce. Coleman had no choice but to wait and see if she was affected. “After a few hours, I was invited to a meeting with HR and a department manager, and that was the end of it.”
Of course, the layoff was unexpected, but the possibility of being laid off in the current climate wasn’t unthinkable, she says. “I was always uneasy, because working in the tech industry, I’d been seeing post after post since around May that year of people getting laid off. It was constantly in the back of my mind.” Indeed, according to layoffs.fyi, which has been tracking global tech layoffs since the pandemic, more than 150,000 people will be laid off in 2022 across more than 1,000 tech companies.
Coleman’s confidence was shaken by his inability to find work. She’d graduated from New York University with a degree in political science and had immediately set her sights on the tech sector, working with early-stage start-ups in San Francisco for nearly two years before landing this large tech job. “I was the person that would go out and get interviews and get offers or leverage offers. I had always felt in control of my career, and this was the first time I didn’t.”
Many of those affected by the global layoffs over the last year, like Coleman, have never faced redundancy before. Many of these employees were ambitious high achievers at top firms. who are now faced with the harsh reality that hard work and talent are not always enough. Aside from scrambling to rethink career plans, some employees have had their confidence shaken in unexpected ways. However, it is not all bad news.
‘What do I do with myself now?’
Coleman’s sense of identity was shaken after being laid off, according to Paula Allen, global leader and senior vice-president of research and total wellbeing at Canadian HR- and tech-firm LifeWorks.
“Being laid off is difficult for anyone… But it can be especially difficult for people who have always been high achievers early in their careers, because they have a sense that they have always been in control of their destiny – that they are the one that people want,” she says.
I felt like I was always in control of my career, and this was the first time I felt like I wasn’t – Shamari Coleman
As a result, they are left wondering what they could have done differently or how they could have performed differently. But, as Allen points out, that isn’t always the case. “You won’t get any insights because you didn’t do anything wrong.”
Even workers who understand that their layoffs were not personal in nature can be affected by these repercussions. Stella Alexandrova, who lives in Toronto, had been working for Canadian e-commerce company Shopify for three and a half years when she was laid off in July of last year.
“It was my dream job and company,” she says of her position as a growth lead. “Being hired felt like the next big step in my career.” She and her team had been working on deadlines and pursuing leads in the days leading up to the cuts. So, when the email arrived in her inbox on a Tuesday morning, just as she’d rolled out of bed and was sipping coffee at her desk, she was taken aback that her time there had come to an end.
“I’m like, what am I going to do with myself now?” she says. “We’d started to hear about other tech layoffs, but you just don’t think you’ll be affected until you are. It was not at all expected.”
She’d never been laid off before, so her mind was racing with questions about why she’d been chosen. “You begin to wonder, did something happen? I didn’t believe I’d done anything to warrant it being based on my performance. That was later confirmed. The layoff affected my entire team. But you can’t help but wonder if it was based on performance at first, which shakes your confidence.”
Of course, being laid off can be a financial blow – often more so for those laid off for the first time, who may lack significant savings or experience navigating a sudden loss of income; or for highly skilled workers, whose layoff was completely unexpected. Coleman had been putting money into various savings accounts since 2020 as part of a personal goal to become more financially savvy, and she felt “financially OK” when she was laid off in December. Nonetheless, the loss of income was a source of concern. “There’s a general sense of worry of, will I have a new role before this money runs out? But for the time being, I’m doing fine.”
According to Dion McKenzie, co-founder of London-based non-profit talent network Colorintech, generous severance packages may help alleviate anxiety about a loss of income in some cases. “However, there is undeniably a financial impact. Let’s face it, younger people coming in at entry level or with three to five years’ experience aren’t guaranteed a windfall,” McKenzie says. “This, in addition to the cost-of-living crisis, carries a financial burden, especially since many of these salaries are composed of [stock] options, which are now underwater and undervalued.”
‘Put yourself first’
The impact of being laid off can manifest differently once the initial shock has worn off and people begin to consider their next steps.
Some people are still unsure about putting themselves back out there in the job market. “This loss – of control, of income, of expectations in terms of work identity – is extraordinarily traumatic for some people,” Allen says. “It alters them. It alters their approach to work.” Allen adds that they may become obsessive overachievers working 100-hour weeks or develop significant anxiety in their next role.
Coleman was concerned about finding her next job in the tech industry. “It harmed my self-esteem. The current technology market is more competitive than any other market I’ve worked in. And now I’m competing not only with a small group of people, but also with those who were laid off at Meta and Twitter. It’s a battle between feeling insecure and realising that I, too, am qualified and capable.”
It’s also changed Coleman’s perspective on potential opportunities. While it hasn’t explicitly deterred her from looking for a job in tech, despite its volatility, she says, “it’s taught me to always do what’s best for you, and put yourself first, because these companies will always put themselves and their bottom line first”.
According to McKenzie, the experience will cause many people to rethink their careers and reprioritize their priorities. They may question the job security at tech giants, and also consider early-stage start-ups with recent funding
“You might also look more closely for companies with stronger foundations, such as increasing profitability and growth rates,” he says. “Alternatively, consider safer industries such as finance and consulting. Those companies will pay a large sum to entice a Google engineer to join their company.”