Can anyone be layoff-proof?

The layoff announcement by Daraz, one of the country's leading e-commerce platforms, has sparked widespread media coverage. As part of the company's decision to embrace a more streamlined and agile structure in an effort to increase profitability, 500–600 Daraz co-workers are reportedly set to lose their jobs this week.

According to LinkedIn News, 85% of workers dread being put off in 2024. These concerns were confirmed in January 2024, when job layoffs reached the highest point since March 2023, with technology and media among the most challenging impacted sectors. According to the Economic Times, around 425,000 people from tech companies, including start-ups, were laid off in 2022 and 2023 worldwide. According to data provided by the layoff-tracking website Layoffs.fyi, 122 IT companies let go 31,751 employees in January 2024 (as of February 3).

While the shift towards artificial intelligence and investor pressure seem to be the leading causes of this year's layoffs, pandemic over hiring was a factor in many of last year's staff reductions. 

The corporate sector has seen a lot of layoffs lately; these events are frequently the result of both internal and external causes. Companies use staff cuts to deal with economic uncertainty, technological developments, and evolving market needs, which continue unabated.

We must remember that in a dynamic job market, no one is indispensable. And, regardless of your skill level, if you are part of the layoff plan, you are out on the street. 

Perfect layoff immunity is an elusive goal, but individuals may implement strategies to improve their layoff resistance. A stable job is essential, and you can weather economic downturns by being proactive.

One key aspect is skill diversification. People constantly improving their skill sets can better respond to shifting industry demands. Embracing lifelong learning through workshops, certificates, and online courses keeps people relevant and adaptable in their employment, making them less vulnerable to being replaced by newer technologies or industry developments.

Networking is another critical area. Building and maintaining a solid professional network, such as on LinkedIn, can provide a safety net during tumultuous times. Cultivating contacts within and outside the existing organisation might lead to new opportunities or collaborations, minimising the likelihood of layoffs. People encourage others to attend business events, participate in online forums, and network to widen their professional connections.

Being a proactive problem solver and contributor may increase layoff resistance. Co-workers who continuously add value to their teams and companies are frequently regarded as critical resources. Individuals who take the initiative, lead projects, and have a strong work ethic stand out and are less likely to be targeted during downsizing.

Financial preparedness is sometimes underestimated, yet it is critical to layoff resistance. Having an emergency fund and managing your finances wisely might provide a financial cushion during unemployment. Having a financial safety net helps reduce the stress of job loss, allowing people to focus on finding new possibilities without immediate financial hardship.

Furthermore, having a positive mind set and adaptability is imperative. Individuals who can embrace change, overcome uncertainty, and address obstacles with resilience will stand out in a competitive work market. Employers prefer adaptive team members who can contribute effectively even under uncertain circumstances.

While perfect layoff immunity may not be possible, individuals can take proactive steps to improve their resistance. Individuals can protect themselves against employment market uncertainty by investing in skill diversification, building a solid professional network, demonstrating constant value at work, ensuring financial readiness, and having a positive and adaptive mind set. Continuous self-improvement and strategic career management are essential to a resilient professional foundation.

Sometimes layoffs are unavoidable, but it's also essential for businesses to make these decisions with empathy, discretion and consideration for the well-being of co-workers. Creating an empathetic and inclusive work culture that values individuals and their talents can help organisations weather difficult times and emerge stronger.

Shafiq R Bhuiyan is a Senior Manager of Communication and CSR at BRAC Bank PLC.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.