Spotting an Upcoming Layoff: Signs you shouldn’t ignore

Layoffs rarely come out of nowhere. Sure, leadership keeps things secretive, but if you know what to watch out for, the signs usually start to show up well before the official announcement.

If you’re early in your career or new to the workforce, these situations can feel overwhelming. But staying alert and being proactive can give you a huge edge. Whether you’re prepping your resume, reaching out to people in your network or just mentally preparing for a change, recognising these red flags can help you take control.

Also, some Layoff Trackers can help you stay informed about what’s happening across the industry. Keep an eye on all layoffs, if they are happening with companies or industries similar to yours, so you’re not caught off guard.

Let’s break down five clear signs that a layoff could be coming and what you can do about it.

1. Visible and Hidden Signs of Financial Strain

When a company is under financial pressure, the effects ripple across the business. Some signs are easy to spot. Others are more subtle.

Obvious warning signs:

• The company misses major revenue goals.

• Earnings calls or financial updates feel vague or sugar-coated.

• Hiring is frozen company-wide.

Less obvious signs:

• Department budgets get slashed.

• Travel is discouraged or blocked altogether.

• Reimbursements take longer, or expense approvals suddenly get strict.

Big red flag: Vendors or contractors stop getting paid on time. If external partners aren’t receiving their money, it usually means cash flow is tight.

2. Projects Get Canceled or Paused Without a Real Reason

Projects are the heart of most companies, especially the high-priority ones. So when those projects suddenly go quiet or get scrapped without warning, that’s a sign.

Here’s what to watch for:

• Top-tier projects get paused without explanation.

• Initiatives tied to future growth quietly vanish.

• Teams are asked to “hold off” or “rethink scope” with no follow-up.

Red flag: People who leave the company aren’t replaced and remaining employees are expected to cover the extra workload. This is a test run for downsizing.

3. Leadership’s Behaviour Starts to Change

When things are uncertain behind the scenes, leadership behavior often shifts first.

You might notice:

• Leaders who were once accessible go silent.

• Execs are having more closed-door meetings than usual.

• 1-on-1s feel rushed, vague or overly positive without any details.

Red flag: Watch out for words like “realignment,” “efficiencies,” or “streamlining.” These terms usually show up before layoffs as a way to soften the message.

If leadership communication suddenly feels rehearsed or too polished, they’re probably preparing for difficult announcements.

4. A Hiring Freeze or Worse, Reverse Hiring Trends

A hiring freeze is usually one of the first visible signs of cost-cutting. But the situation often goes further than that.

Early signs:

• All job postings go on pause.

• Open roles sit unfilled for months.

Escalating signs:

• Job offers are pulled last minute.

• Contractors are quietly let go.

• Internal transfers get blocked without clear reasons.

Red flag: If you hear about people being let go quietly from other teams, that’s serious. Some companies do “stealth layoffs” to avoid panic, until the bigger wave hits.

5. Rumours Get Loud… Then Go Silent

This one’s sneaky. At first, there may be whispers, people speculating about what’s happening. But then? Radio silence.

What usually happens:

• Rumors fly for a week or two.

• Then things suddenly get very quiet.

• HR becomes harder to reach or suddenly “too busy.”

Red flag: If HR or your manager starts avoiding questions or won’t look you in the eye when layoffs come up that’s not a coincidence.

In most companies, once HR and Legal get involved, communication gets locked down. That sudden silence is often the final stage before layoffs are made official.

So… What Should You Actually Do If You Spot These Signs?

Seeing one red flag? Not the end of the world.

Seeing three or more at once? That’s your cue to take action.

Here’s a quick action plan:

1. Update your portfolio and build proof of work. Make sure they show off your most recent work. Think: metrics, success stories, client wins, project launches.

2. Start networking quietly but consistently. Don’t wait until you need a job to reach out to people.

3. Explore roles in your industry. Even if you’re not applying yet, knowing what’s out there helps.

4. Stay cool at work. Don’t change how you act just yet. Being proactive doesn’t mean being panicked.

Bottom Line

Layoffs are hard mentally and professionally. But being caught off guard is even harder.

If you’re starting to spot multiple warning signs, don’t wait for an official email to start thinking about your next step. Being prepared is the best way to stay in control.

Whether it’s boosting your visibility, making new connections or quietly exploring new roles, you’ve got options. And you can start right now, Peerlist is one solid place to do it.

Stay alert. Stay ready. And remember, your job doesn’t define your worth, but how you handle change can shape your future.