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🥕 Feast and famine

Every generation has undergone a similar baptism of fire, from the dotcom crash of the late 1990s to the Global Financial Crisis in 2008. Phew, the Gen Xs and the Baby Boomers sure went through it.

So – why is this happening now? Tech companies went overboard hiring during the pandemic when business was booming online. Now, with a recession looming, these same companies are in a bind as capital is drying up.

But if you’ve observed that some of these companies that have cut headcount (cough Alphabet cough) are still profitable, you are absolutely right.

“Tech companies might be facing pressure from investors to tighten their belts and push for efficiency,” says Amarjit Kaur, a partner of the employment practice at global law firm Withers.

Investors are eyeballing revenue per employee, which has decreased in line with the massive growth in manpower strength during Covid-19. Cutting headcount bumps up this metric. 

“This is borne out in the fact that a lot of the layoffs are not performance-based, or necessarily based on clear rationale,” Kaur notes.

💔Breaking up is hard to do

For those in fear of being laid off, the first thing you should do is check your contract.

Here are some tips from lawyers Kaur and Joel Shen, head of the Asian tech practice at Withers:

• Identify what is due and owed as a matter of contract, versus what might be discretionary and open to negotiation

• While there is less wiggle room at large multinational companies, employees can still try to optimise exit packages

• In certain cases, companies might agree to accelerate vesting plans (stock options are a common incentive or a form of compensation in startups)

• For employees who were terminated without cause, it is not uncommon for unvested stock options to immediately vest

That being said, there are no legal requirements for retrenchment payouts in Singapore – merely guidelines. Anything that you receive will likely be what was already in your contract. Pro-tip: For those about to sign an employment contract, negotiate before you sign anything! 

🪓 Don’t wait for the axe to fall

Instead of fretting, take some proactive steps to prepare yourself for the worst. We got Adrian Choo, CEO of HR consultancy Career Agility, to weigh in.

• Develop a Plan B: Identify other companies or roles that will need your skills

• Check on your financial status and plan accordingly

• Tap your networks to identify opportunities

• Consider if you want to pivot to other industries – banks, for example, are still hiring for tech

If you have been cut, pause and breathe before making your next move. It can be a very stressful period as you try to make sense of what happened, but try not to take things personally. Sometimes, as callous as it is, it’s just business.

Companies sometimes say that they are a family. But be aware that fundamentally, most businesses exist to make money. If you’ve pinned your entire identity to your job, it’s time to calibrate and reflect. You are not your job.

It can also be traumatic for those left behind to pick up the pieces. Make sure you get support from friends and family, or even career coaching or counselling. Some companies offer such benefits to affected staff, so take advantage of them. 

The bloodbath from the tech layoffs is still far from over. All we can do now is gear up and be ready for what lies ahead. This too will pass. 💪 

TL;DR:

• Examine your contract 📜

• Get ready with a Plan B

• Leverage your networks

• Check your finances 

• Remember, it’s not personal