When you're still anxious about being laid off

[WORLD] In the wake of widespread corporate downsizing, many employees find themselves grappling with a persistent undercurrent of anxiety, even after the immediate threat has passed. This phenomenon, often termed "layoff anxiety," can linger long after the pink slip is delivered, affecting both those laid off and the employees who remain.

Recent studies have shown that layoffs are not just a personal setback but can have long-term consequences on overall workplace morale. According to a 2024 study by the National Bureau of Economic Research, employees who witness layoffs tend to experience increased stress, which often leads to lower job satisfaction and higher turnover rates in the months that follow. This phenomenon is particularly prevalent in industries that experience frequent layoffs, such as tech, retail, and media.

Layoff anxiety is not just a fleeting concern; it's a complex emotional response that can manifest as chronic stress, sleep disturbances, and a pervasive sense of insecurity. According to experts, this anxiety stems from a combination of personal and systemic factors.

"The uncertainty of job security, coupled with the emotional toll of witnessing colleagues lose their positions, creates a fertile ground for anxiety to take root," explains Dr. Jeanette Bennett, an associate professor of Psychological Science at the University of North Carolina, Charlotte .

In addition, the growing trend of “quiet quitting,” where employees disengage from their work but remain in their jobs, can exacerbate the anxiety felt by workers. Many employees in companies that have undergone recent layoffs may be questioning their own job stability and are thus less likely to engage fully in their roles. This dynamic can lead to a ripple effect that harms the overall productivity of the workforce.

This anxiety is not confined to those who have lost their jobs. Employees who remain may experience "survivor's guilt," a feeling of unease about keeping their position while others are let go. This can lead to decreased morale and productivity, further complicating the work environment.

Coping Strategies for Individuals: For those directly affected by layoffs, it's crucial to address both the emotional and practical aspects of the situation.

Acknowledge and Process Emotions: Allowing oneself to grieve the loss of a job is an essential first step. Experts recommend acknowledging feelings of sadness, anger, or fear and seeking support from friends, family, or professionals. Journaling and mindfulness practices can also help in processing these emotions .

Establish a New Routine: The structure provided by a job often disappears after a layoff, leading to feelings of aimlessness. Creating a daily schedule that includes job searching, skill development, and self-care activities can restore a sense of purpose and control .

Enhance Skills and Network: Utilizing this time to upskill through online courses or workshops can increase employability. Additionally, reconnecting with professional networks can open doors to new opportunities and provide emotional support .

Financial Planning: Reviewing personal finances and creating a budget can alleviate some of the stress associated with job loss. Experts suggest having an emergency fund that covers three to six months of living expenses to provide a financial cushion .

Interestingly, many laid-off employees report finding new opportunities by embracing freelance or gig work, especially in fields like marketing, writing, and tech development. With the rise of remote work and digital platforms, some workers have transitioned to freelance careers, finding a sense of independence and flexibility that was absent in their previous corporate roles. However, this shift brings new challenges, including the lack of health benefits and job security, which can cause additional stress.

Supporting Remaining Employees: For those who remain employed, it's important to address the psychological impact of witnessing layoffs.

Open Communication: Organizations should foster an environment where employees feel comfortable discussing their concerns. Regular check-ins and transparent communication from leadership can help alleviate feelings of insecurity .

Promote Well-being: Implementing programs that focus on mental health, such as stress management workshops or access to counseling services, can support employees in managing anxiety and maintaining productivity.

Recognize and Reward Contributions: Acknowledging the efforts of remaining employees can boost morale and reinforce their value to the organization. This can be through formal recognition programs or informal appreciation from leadership.

In response to the increasing demand for workplace mental health support, some companies have started to offer wellness programs specifically designed to combat the effects of layoff anxiety. These programs include initiatives like peer support networks and regular mindfulness exercises, which can help create a more resilient workforce. Even in uncertain times, such proactive measures can make a significant difference in maintaining morale.

Organizational Responsibility

Companies play a pivotal role in mitigating layoff anxiety. Implementing humane and transparent layoff processes, offering severance packages, and providing outplacement services can ease the transition for affected employees. Furthermore, fostering a culture of empathy and support can help maintain a positive work environment during challenging times .

Layoff anxiety is a multifaceted issue that requires a comprehensive approach to address. By acknowledging the emotional impact, providing support, and fostering open communication, both individuals and organizations can navigate the challenges posed by layoffs. In doing so, they can emerge more resilient and prepared for the future.