Understanding Layoffs and What You Should Do Before It’s Your Turn

LAYOFFS! Yes, the big elephant in the HR room. The “Dear team, we regret to inform you…” message that has made grown adults cry in their cars, plan prayer sessions, and start Googling “How to make 500k per month from home.”

No one ever thinks it’ll be them. Not the guy who’s been with the company for 10 years. Not the high-performing team lead who recently bagged “Employee of the Year.” Not even the pregnant woman who just got a promotion. But when the company starts “restructuring,” everyone suddenly becomes a potential target.

And in the past two years, it’s been raining layoff letters. Global giants, Nigerian unicorns, FinTech's, Telco's, media companies even people that posted “We’re hiring” in January, started laying off by April.

Why exactly do companies lay off? Who gets affected? Is it a betrayal to long-serving employees? And what can you do - yes, YOU to prepare, just in case your own surprise letter is loading?

It’s Not Always About Performance

This is where people often get it wrong. “Why me?” “But I’ve never gotten a query.” “But I just got promoted.” “But my manager said I’m one of the best.”

Yes. All of that may be true.

But layoffs don’t always happen because someone is doing badly. Sometimes, they happen because the business is doing badly.

Or because investors are no longer smiling. Or because the product isn’t selling. Or because one overambitious department over hired. Or because someone in a boardroom somewhere read one Excel sheet and whispered, “We need to cut costs.”

And when it’s time to cut, They cut based on structure, numbers, strategy, and sometimes, survival.

Why Do Companies Lay Off?

1. Financial Pressure Revenue has dropped, costs are high, investors are worried. Something has to go. Unfortunately, that “something” is often someone.

2. Department Redundancy Sometimes two teams are doing the same thing. Or a project ends. Or automation replaces human tasks.

3. Business Pivot Company started as a fintech, now they’re turning to EdTech. The old team? No longer useful.

4. Bad Decisions Upstream Over hiring. Overspending. Poor planning. Then the finance team rings the alarm bell.

5. Global Trends One big tech company sneezes, and suddenly your local office catches cold. We’ve seen it over and over.

Yes, sometimes it’s mismanagement, but many times, businesses themselves are under pressure from the following:

1. Contract Terminations and Expiries

A lot of companies survive on client contracts. Especially B2B firms, consulting companies, agencies, and vendors. When those contracts end for budget cuts, change in vendor policy, new management, or political influence entire teams suddenly become redundant.

If 70% of your revenue was from one client and that client walks away, you’re no longer a company. You’re a prayer point.

2. Economic Shifts & Inflation

We are operating in an economy where fuel prices change faster than you can blink, and forex rates give you hypertension. Inflation squeezes operational costs, revenue drops, and companies are forced to cut payroll just to stay alive.

3. Emergence of AI & Cheaper Tech Alternatives

AI is not playing with anybody. What one team of 5 was doing before, a well-trained AI tool can now do in half the time and at zero HR drama.

Companies trying to survive the global market are looking at cheaper, faster, automated options. The painful truth? Some roles are not getting replaced by better people they’re getting replaced by smarter software.

4. Mergers, Acquisitions & Internal Politics

Two companies merge now they don’t need two HR managers, two product leads, or two CFOs. Someone has to go.

Or the new leadership wants “their own people” in strategic roles. Suddenly, people who’ve done nothing wrong get asked to “transition out.”

5. Funding Droughts & Investor Pull-Outs

For startups and VC-backed companies, when the money dries up, dreams end quickly. Once investors say, “Cut burn rate or we pull out,” the next thing you hear is “We’re restructuring.”

And many times, the people who once brought in the big wins even they become expense lines.

So it’s not always incompetence. Sometimes, it’s survival. Business itself is a battlefield. And when companies fight to stay afloat, people are often the first to be sacrificed.

And no they don’t always cut the “lazy people” first. They cut based on position, pay grade, department size, and long-term plans.

So even you, star performer, MVP, always online, extra-mile taker you are not fireproof but in all honestly, star performers are often retained.

Is It Betrayal?

It can feel like betrayal. You’ve served the company for 10, 15, even 20 years. You’ve missed weddings, sacrificed vacations, worked late into the night.

Then one day, someone calls you and says, “Thank you for your service. We’re letting you go.”

And you’re just expected to smile and hand over your laptop?

The emotional impact of layoffs is real. It’s not just about money. It’s about identity, dignity, and dreams interrupted.

Companies are not family. They are businesses. They exist to grow revenue and deliver value to stakeholders. When those two goals are threatened, even the most loyal staff can become collateral damage.

It’s not cruelty. It’s capitalism.

Who Gets Hit the Hardest?

In most layoffs, there are three categories of affected people:

1. The Obvious Cuts Low-performing employees. Low performing roles. Redundant teams. Temporary staff. Contractors. The usual suspects.

2. The Shockers People who just got promoted. Managers with glowing appraisals. High earners/High paying roles. Integral team players.

3. The Silent Survivors People who stay but feel guilty, paranoid, and scared. They survive the cut, but lose motivation and trust.

So, What Can Employees Do?

Whether you’re a fresh Gen Z employee or a Gen X team lead nobody is too valuable to get a layoff letter.

How do you stay ready?

1. Never Stop Building Skills Today’s MVP can be tomorrow’s outdated relic. Keep learning. Stay relevant. Upskill every quarter like your job depends on it because it might.

2. Know the Business Pay attention to the company’s direction. Are they profitable? Are they growing? Are they over hiring? Ask questions. Read signals.

3. Keep Your Brand Alive Don’t be a ghost online. Network. Update your LinkedIn. Share your work. Keep your reputation visible outside the company.

4. Save & Diversify That salary? It’s not forever. Save. Invest. Build multiple income streams. Protect your peace but do not violate the company's conflict of interest policy or Non compete Agreement.

5. Don’t Take It Personal Yes, it’s painful. But it’s not always about you. Sometimes the company is simply cutting the tree from the top.

Companies Too, Have a Role to Play

If you’re a founder, business leader or HR manager, here’s what you owe your team:

• Transparency Don’t wait till Friday to drop the shocker. Communicate early.

• Dignity Let people leave with honor. Offer letters, severance, emotional support, and references if you can.

• Structure Plan layoffs properly. Don’t drag the process or create chaos. Use logic and compassion.

• Accountability If poor leadership decisions caused the problem, own it. Don't blame the same employees you failed to empower.

Layoffs are not always fair. They’re not always logical. But they are always a reality in business. Today it’s your colleague. Tomorrow it could be you. The only real job security you have is the value you carry in your head, hands, and heart.

Because when the cut starts, it can come for anyone.

Need Support Building a Team or Navigating Layoffs the Right Way?

At FMR Agency, we don’t just fill roles, we help companies build people-first teams that grow sustainably.

We support organizations with: ✅ Strategic hiring ✅ Exit process management ✅ Talent replacement ✅ Layoff communication frameworks ✅ Workforce planning

If you’re hiring or letting go - do it right.

📩 Contact Us: 🌐 www.fmragency.com 📧 info@fmragency.com 📞 08163069187 | 09028896663