Mass Layoffs in 2022: What’s next for employees?
Mass layoffs are a difficult but common occurrence in the business world that leaves many employees wondering how they’ll be affected and what to do should they find themselves holding a pink slip.
While the current employment market in the US is strong — with low unemployment rates and high job growth — this could all change in the near future as many businesses struggle to adapt with the changing economy.
Taking all of this into account, many US companies have already begun mass layoffs.
So what exactly is a mass layoff?
A “mass layoff” can be defined when the following occurs:
- When at least 50 employees are laid off within 30-days or less resulting in the laid-off employees equaling more than one-third of the company’s workforce
- 500 employees are laid off within 30-days or less, no matter how large the company’s workforce
This can be devastating for both the individuals affected personally and the economy as a whole.
What companies have had mass layoffs this year?
Netflix mass layoffs
The streaming giant’s subscriber count continues to shrink and as a result, Netflix has laid off 150 workers accounting for about 2% of its workforce.
Citing slowing revenue as the reason for slow company growth, Netflix representatives explain that these layoffs come as the result of a business need and not due to any personal performance issues of those being let go.
Carvana mass layoffs
In one of the largest mass layoffs this year, Carvana cited a recession in auto sales as the main driver in laying off 2,500 employees.
Reports of this mass layoff have revealed that these 2,500 Carvana employees were made aware of layoffs via Zoom.
Coinbase mass layoffs
The cryptocurrency exchange platform announced that it would be laying off 18% of its workforce.
CEO Brian Armstrong cited a possible recession, a need to manage costs and growing “too quickly” during a bull market as reasons for laying off almost one-fifth of the Coinbase workforce, leading many to wonder if this is a sign of things to come for the crypto industry at large.
Compass & Redfin mass layoffs
As the housing market remains as volatile as ever and interest rates continue to rise, Compass, a real estate brokerage, announced that it would be laying off 10% of its employees.
Redfin, another real estate brokerage feeling the effects of declining home sales, announced that it will be cutting its workforce by 8%.
These layoffs come as both companies have been struggling to keep up with the slowing housing market.
Loom mass layoffs
Although not technically a “mass” layoff, video messaging and collaboration service Loom recently laid off 34 members of its relatively small staff accounting for 14% of its overall workforce.
While Loom hosts 14 million monthly users, these layoffs are said to be a part of the company’s overall strategy for more sustainable growth moving forward.
What to do if you’ve been laid off
While you may be overwhelmed by what to do after being laid off, there are a few important things you should do immediately after.
If you’ve recently been laid off, be sure to take care of these three things immediately before figuring out what to do next…
Tip 1: File for unemployment immediately
Filing for unemployment is the first step you should take if you’ve been laid off. You can usually file for unemployment online, simply by providing information like your Social Security number, driver’s license or state ID number, and contact information for your previous employer.
Tip 2: Health insurance options
Exploring your health insurance options after being laid off is also important. If you were previously covered by your employer, you may be eligible for COBRA, which allows you to keep your health insurance for a certain period of time after leaving your job.
Tip 3: Retirement savings
If you had access to a 401k contribution plan at your former employer, you have the option to cash out your 401k, though this option is usually not advised as certain penalties can be incurred.
There is also the option to roll the account over into an IRA but take the time you need to decide which option is best for you with a licensed finance professional.
Top industries to apply to after you’ve been laid off
Once you’ve taken care of those 3 housekeeping items to stay afloat while you search for your next job, take some time to update your resume, start networking, and consider the following industries in high demand for talented professionals.
The tech industry is always in need of talented professionals and there is no sign of that changing anytime soon. Companies like Google, Amazon, and Apple are always on the lookout for top talent in fields with top salaries in data science, software engineering, and product management.
Digital Marketing Industry
The rise of social media and online advertising has led to a boom in the digital marketing industry. Companies are in need of talented marketers to help them reach their target audiences online in new and innovative ways.
With countless, in-demand roles with top salaries in social media and digital marketing, now is a great time to consider a career as a social media coordinator, digital marketing manager, and more.
The creative industry, which includes roles with top salaries in web design, graphic design, and copywriting, is also in high demand.
Companies are always looking for creative professionals to help them stand out from the competition. If you’re a creative professional who has recently been laid off, consider pursuing a career in the creative industry.
For a complete breakdown of all the top Tech, Creative & Digital Marketing salaries, download our 2022 Salary Guide.
Are more mass layoffs coming in 2022?
While employment trends for 2022 continue to change and evolve and many companies have experienced mass layoffs, economists say that this won’t necessarily be the norm moving forward.
Recent U.S. employment numbers show that employment rates remain steady and although certain sectors have been hit by layoffs harder than others, these companies are largely those that saw larger than average growth throughout the Covid-19 pandemic.
Looking for your next Tech, Digital Marketing, or Creative gig? Let us help.
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If you’ve been affected by mass layoffs in 2022, remember you still have plenty of options.
There are many industries that are still hiring and there are many things you can do to improve your employability.
Be sure to file for unemployment, explore your health insurance options, and update your resume before applying to jobs in high-demand industries like tech, digital marketing, and the creative arts.
With a little effort, you’re sure to find yourself gainfully employed again in a fulfilling role.
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