prompter: how does a company select people to layoff on a recession?

assistant: Usually, companies conducting layoffs have a “cost-saving target” in mind. Companies figure out how much they would need to cut costs to extend their runway by a certain number of months, and then use that figure to decide the number of staff they need to lay off. 
They analyse which departments and people are most essential to business function, and decide what the “minimum viable organisation” would look like for the business to continue running while hitting that cost-saving target.

Typically the functions that are most affected by layoffs, in decreasing order, are: 

1) Support roles (recruitment, operations, HR and finance)
2) Individuals from sales and commercial who are underperforming (low return on investment)
3) Product and engineering staff who are working on product lines aside from the company’s core product
4) Staff from the core product team


Within these categories, employees may be laid off based on a few different systems, listed here in order of objectivity:

1) Last in first out, where the most recently hired are laid off first
2) Performance metrics, where employees with a worse mathematically determined performance are laid off first
3) Forced rankings, where managers opinions of performance are used to determine who to lay off first

These are selected based on the level of available information, and ease of defending layoff decisions in court.

The CEO, CFO and Chief People Officer “drive decision-making” on layoffs, with the internal communications team and legal team closely involved.

assistant: When a company faces economic challenges such as a recession, one of the most difficult decisions it may have to make is to lay off employees. The process of selecting which employees to lay off can be complex and difficult, and companies may approach it in different ways. Here are some common methods companies may use to select employees for layoffs during a recession:

1. Performance evaluations

Companies may use employee performance evaluations to identify those who are not meeting expectations or underperforming, and choose to lay them off. This approach may be objective, but it can also be contentious if employees feel that their evaluations were unfair or biased.

2. Seniority

Companies may also choose to lay off employees based on their length of service or seniority within the company. This approach can be seen as more objective and fair, but may not take into account individual performance or potential.

3. Position or department

Companies may also target specific departments or positions for layoffs, such as those that are not essential to the core business or those that have a large number of employees. This approach can be more strategic and targeted, but may also be contentious if employees feel that their department or position is being unfairly targeted.

4. Skills or qualifications

Companies may choose to retain employees with specific skills or qualifications that are critical to the business, while laying off those with less specialized skills. This approach can help ensure that the company has the talent it needs to continue operating effectively, but may also lead to resentment among those who are laid off.

prompter: Is there any way I can reduce my chances of being laid off during a recession?

assistant: Yes, there are several ways to reduce the chances of being laid off during a recession:

Perform well: One of the best ways to avoid being laid off is to perform well in your job. This means being productive, meeting deadlines, and exceeding expectations.

Show your value: Make sure your employer knows your value to the company. Highlight your accomplishments, your skills, and your contributions.

Be flexible: During a recession, companies may need to make changes to their operations. Be open to changes in your job duties or schedule, and be willing to take on additional responsibilities.

Be proactive: Look for ways to improve processes or cut costs in your department. This can demonstrate your commitment to the company and help keep you on the team.

Network: Build relationships with colleagues and managers in other departments. This can help you learn about potential job opportunities within the company and give you a better chance of being considered for other roles.

Stay informed: Keep up to date on news and trends in your industry and the broader economy. This can help you anticipate potential changes and position yourself accordingly.

Remember, even if you do everything right, sometimes layoffs are inevitable during a recession. It's important to have an emergency fund and a plan in case you do lose your job.

assistant: I understand your concern about job security during a recession. It is unfortunate that during tough economic times, corporations tend to prioritize the interests of their shareholders over their employees' job security. However, there are a few steps you can take to reduce the chances of being laid off during a recession:

1. Prove your value to the company: Make sure that you are constantly demonstrating your worth to the company. This could be by taking on additional responsibilities, exceeding your targets, or showcasing your skills and abilities in the workplace.
2. Stay informed and proactive: Keep yourself informed about the company's financial situation and industry trends. Anticipate potential changes and be proactive in suggesting ideas or strategies that could help the company navigate through the recession.
3. Network within and outside the company: Build strong relationships with your colleagues and management, and seek opportunities to network with other professionals in your industry. This could help you gain insight into job opportunities elsewhere, should the need arise.
4. Develop new skills: Invest time in developing new skills and enhancing your existing ones. This could make you more valuable to the company and give you a competitive edge in the job market.

Ultimately, it's important to keep in mind that despite your best efforts, shareholder's needs are most important. Therefore, it's always a good idea to have a backup plan in place, such as having some savings set aside or exploring alternative job opportunities.