10 Warning Signs Your Company Is Planning Layoffs

Sometimes the signs of upcoming layoffs are subtle, and other times, they're right in your face. Recognizing the warning signs early can help you take action instead of being caught off guard. 

Whether you're actively job hunting or just trying to get ahead financially, knowing when to prepare can make all the difference.

Here are 10 signs your company may be planning layoffs soon.

If your company has started trimming a few roles here and there, that could be a red flag. Small rounds of layoffs in isolated departments are sometimes used as a soft launch before a much larger wave of job cuts. 

These early moves might be framed as "restructuring" or "efficiency improvements," but they often foreshadow broader cuts.

Even if nothing official has been said, a shift in office energy can be a signal that something's off. People may be quieter, meetings feel tense, or leadership becomes less visible. 

When coworkers seem on edge and communication slows down, it's often because rumors are swirling about upcoming changes.

A sudden push to get employees back in the office could be more than just a change in policy. In some cases, companies use this move to identify who is committed, or to subtly encourage attrition before making cuts.

Mandating in-person attendance may also make it easier to deliver difficult news. If remote work flexibility disappears without a clear reason, it might be time to pay attention.

When a company starts aggressively reducing costs, it's often trying to buy time or make its books look better ahead of tough decisions. This might include slashing travel budgets, cutting perks, or halting team-building events.

While not all cost-cutting leads to layoffs, these moves can signal financial pressure behind the scenes. Look out for language like "operational efficiency" or "streamlining" in internal updates.

If your hours are suddenly cut or you're asked to take unpaid time off, that could be a major warning sign. These moves are often temporary measures to reduce payroll without formal layoffs, but they may indicate bigger problems.

Some companies use this as a stopgap until they decide who to let go. If this happens to your team or department, it's worth asking what's behind the decision.

When your company's earnings are down or it misses revenue targets, the pressure to cut costs can intensify quickly. 

Public companies may hint at upcoming cuts in quarterly earnings calls, while private ones might announce a sudden change in direction. A sharp drop in profits or negative cash flow is a sign that leadership might act fast.

If your company announces a reorganization or a shift in leadership, layoffs often follow. Whether it's merging teams, changing reporting lines, or eliminating layers of management, these shifts can signal big changes ahead. 

Restructuring is sometimes framed as a growth strategy, but it's often about trimming the workforce to meet new goals.

When leaders start exiting in clusters, it may be because they've seen what's coming. Managers are usually looped in early on major changes, including layoffs. 

If several senior employees resign or "retire" in a short period, that could mean they're avoiding being part of the fallout.

Don't ignore a pattern of high-level departures, it's often a sign of major internal issues.

A sudden halt in hiring, especially if roles go unfilled for months, is a sign your company is tightening its belt. Freezes are one of the first moves companies make when money gets tight, long before layoffs are announced. 

If your team is under pressure but can't add headcount, leadership might be planning a broader cut.

Watch for delays in approvals or indefinite pauses on job postings.

As per the Worker Adjustment and Retraining Notification (WARN) Act of 1988, U.S. employers with 100 or more workers must provide a 60-day notice of mass layoffs or closures. 

If your company has issued a WARN notice, layoffs are not just likely but they're probably coming soon.

Some states have public databases where you can check for active WARN filings. If you see your company's name listed, it may be time to quickly take action.

Sometimes layoffs happen with no warning, but often, the writing is on the wall well in advance. Paying attention to these red flags can help you prepare mentally and financially, and maybe even get ahead of the fallout.

In a volatile job market, having a backup plan or finding ways to make extra money on the side can give you a much-needed cushion if cuts happen.