mayrarodz profile picture
mayrarodz profile picture

mayrarodz

Customer Success/Account Manager

Fire Starter
Contributor

Why would companies laying people off be hiring at the same time?

I got laid off last month and have been applying like crazy. I go through a full round of interviews for a company and then the following week hear about layoffs at this company. This same situation has happened at 2 companies now so I don't understand how they can be hiring people but laying people off at the same time? Honestly, it's a red flag for me that if I get hired on, I can just as easily be laid off.... can someone explain to me why that might be? 
🌎 Economy
😄 Job Hiring
☁️ Software Tech
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26 comments

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Justatitle
Big Shot
9
Account Executive
there's a dartboard in the C-suite lounge and they throw darts at their monthly meeting to determine layoffs or not and which departments will be affected. This is the way
CuriousFox
WR Officer
3
🦊
I've always said they grab decisions from the Fantasia Mickey Mouse hat 🔮
Justatitle
Big Shot
0
Account Executive
your giving the standard C-suite far too much creative credit.
punishedlad
Tycoon
1
Business Development Team Lead
lmao
I knew it!
Sunbunny31
Politicker
5
Sr Sales Executive 🐰
One division may be laying off, but another one may need people with different qualifications.
My manager also pointed out something I brought up earlier this week, but might apply here: some companies hired people at the top of the market, when applicants could demand and receive top dollar. They're often the first to go in a layoff, because they can be replaced by less expensive talent. It's an opinion, but my manager is also watching the market.
And yes, in any case, nobody is ever "safe" in a job these days. Find a good fit, do your very best, and you may be ok, or you may not be. Nobody has a magic 8-ball that actually works to tell the future. It is, however, something to bring up in conversations with hiring managers and recruiters.
Space_Ghost20
Valued Contributor
3
Account Executive
Sometimes a company has multiple lines of business, and product X isn't doing too well so they decide to scale back on it, or scrap it entirely. For whatever reason, they decide to lay off people working on product X (whether those are sales or technical people) instead of training those people on products Y and Z (which are doing well) and keeping them around.
Also sometimes it's just an excuse to get rid of poor performers or people at the top of the pay band and replace them with cheaper folks who might perform better (or as well).
Sunbunny31
Politicker
4
Sr Sales Executive 🐰
You and I posted about the same thing at the same time. I consider that validation.
Space_Ghost20
Valued Contributor
3
Account Executive
Great minds think alike.
Diablo
Politicker
3
Sr. AE
This is it ☝️I also feel sometimes their is a cultural change and rather than making someone unlearn and getting adopted, they pull fresh flesh
FinanceEngineer
Politicker
2
Sr Director, sales and partnerships
They are cutting areas that aren’t needed/over staffed for plans/underperforming and adding where they need it. It’s not complicated. It would have happened sooner, but need the recession to cover and keep the stock from tanking.
CadenceCombat
Tycoon
2
Account Executive
Series C startups sometimes use layoffs to cover their own asses when they don’t hit their targets. They can point to sales instead of admitting they overcommitted themselves to get the valuation they wanted. “If we only had enough sales people, we’d be hitting targets!” So they hire to make it seem like they’re trying to fill seats while quietly letting people go. Yes, I’m aware this makes no sense but this shit happens.
Kosta_Konfucius
Politicker
1
Sales Rep
Because nothing in the business world makes sense
antiASKHOLE
Tycoon
1
Bravado's Resident Asshole
It really doesn't make sense at all.
DungeonsNDemos
Big Shot
1
Rolling 20's all day
Could be cutting people who are "paid too high" for the position and then they're looking for entry level people to fill at a lower rate.
TennisandSales
Politicker
1
Head Of Sales
yeah its a huge red flag. there could be a few reasons:

- They are getting rid of expensive ppl and hiring less expensive ppl.- they are laying ppl off in specific departments and hiring in others.- some companies actually restructure how they operate, which means getting rid of departments or redundant roles, but also want to invest in sales more.

FoodForSales
Politicker
1
AE
That's a practice I have never liked.
SaaSguy
Tycoon
1
Account Executive
Some people don't perform so they let go. These people still need to be replaced often.
GDO
Politicker
1
BDM
because big companies have silo's. One can do great and grow while the others are walking wounded. Also somethimes it's a signal to the stock market. Or they just want to "refresh" their salesforce (sad but true)
Joel23
Good Citizen
1
Community Manager
great question
Maximas
Tycoon
0
Senior Sales Executive
Sad to tell you that they only treat us like numbers whoever gets em shall stay and whoever don't shall go!

So they keep trying other people all the time hopefully for a perfect fit with the crazy targets they keep setting and changing frequently for no reason!!

We're more into machines than humans to a large scale of employers unfortunately!!!
accurateforecast
0
VP/Director of Sales
HR knows best. *hee hee*
Hufflepuff13
Contributor
0
Account Executive
I wonder this every day lol
mayrarodz
Fire Starter
0
Customer Success/Account Manager
All really great insight!! Thanks y’all!! The search continues
TheEnglishMajor
Opinionated
0
Account Executive
could also be a sign of a failing company! In my situation, I was laid off along with 20% of the company, and it caused others to lose hope in the company's vision and quit themselves, making it so they are hiring for roles they just laid people off in
cryptos
0
AM (Account Manager)
I’ve heard before they got rid of those who “didn’t fit the brand” and labelled it strategic restructuring.
TheHypnotist
Executive
0
Sales Manager
Pareto principle: 80% of deals will come from 20% of the sales team. They are trying to separate the wheat from the chaff and get everyone to be a top performer.

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