Tech Layoff Anxiety and Its Mental Impact

Apr 6

In the last few years, layoffs in the tech industry have become more common, at large and small corporations. Highly experienced software engineers, designers, and tech professionals were left without jobs and faced questions like, "What's next?" or "Was I bad at my job?" Tech layoff anxiety is a very real stressor, and feeling insecure career-wise can pile up. That's why seeking specialized therapy can help navigate the feelings that come with job loss and the uncomfortable emotions when looking forward.

Who Am I Without My Job?

This is a common question that often follows someone being laid off from a job. In tech, the stakes are high and hours can be long, consuming employees and attaching their identity to their job or how well they are performing.

After being laid off, there can be panic about financial matters, falling behind, feeling inadequate, and so much more that feeds into that anxiety. It's important to maintain a balance between work life and personal life so if a layoff does happen, a sense of self remains. Getting laid off is not a badge to be worn like a scarlet letter. In today's world, it's a lot more common than you think.

Financial Woes

Whether the layoff has already happened or there is worry about an impending one, the financial aspect of holding a job is what causes people the most stress. How will I afford my lifestyle or the home I already have if I lose my job? How will we pay the bills? How will I support my children? The financial worries are hard to manage.

Financial worry occurs whether or not a layoff has happened, but the best course of action is always to be prepared. Save while employed and build a healthy savings so that, if the worst comes, unemployment time can be focused on finding a job rather than on finding temporary income to bridge the gap.

The Career Landscape & Mass Layoffs

Some things are completely out of our control. Many industries, including tech, have experienced volatile market shifts, leading to mass layoffs and budget cuts. It's difficult not to pin the blame on work performance or what could have been done better, but it's important to remember that you can't control instability; you can only learn to recover from it.

Right after a layoff, many struggle not to hit the panic button and start applying to every relevant job. In the current climate, competition seems high, and anxiety is growing amongst professionals, but we owe it to ourselves to find the right fit for the future. More and more working adults are reporting that they have faced a layoff or had a supervisor be laid off, so fear has spread. Always stay prepared so that if that day does come, a game plan is ready to implement.

Here are helpful ways to quickly recover from a layoff and get set up for success:

Update your resume with your most recent experience
Edit your LinkedIn profile to show 'Open to Work'
Reach out to your social media networks about opportunities
Network with other local professionals

These tips are not just for those who have been laid off, but also a great exercise for those who are still in a position. This can help alleviate the stress of potential layoffs and create connections before the job search begins.

Focus on the Facts

In most layoffs, especially since the COVID years, when large corporations are dealing with cutting costs due to tariffs or overhiring, it has nothing to do with the work ethic or performance of employees.

Getting laid off can affect pride, self-worth, and overall mental health. That's why focusing on the facts of the situation rather than self-judgement can help navigate those emotions and redirect attention to the positives.

Here are some positives to focus on after a layoff to help rewire the negative thoughts that come with it:

Review experience and what skills are transferable to other opportunities
Take a beat after the layoff and do something that brings peace
Stop doomscrolling about layoffs on social media
Avoid comparison and focus on being present
Talk about it with loved ones and don't hold in the emotions

Shifting Mindset & Prioritizing Mental Health

After you've packed up your things or hung up the remote call, what do you do next? Most people cry and let the feelings out at first, but then the stress of the situation starts to seep in. Although getting a job and an income are considered among the highest priorities in adult life, they're not number one. Number one is and always will be mental health to cope with clarity.

Take the time to work through these common questions that are felt by most after losing a job:

Could I have done anything differently?
What does this say about me?
What did I do well in my last role?
What kind of role do I want next?
What are my goals?

The Guilt of Surviving Layoffs

There's another side to layoffs: the employees left to pick up all the work when others are laid off. No one thinks about the ones left behind to pick up the pieces and the guilt that often follows surviving mass layoffs.

They may not have the stress of unemployment, but they still face other challenges and anxieties from keeping their jobs. Remaining employees face heavier workloads, the same pay, less support, and continue to live in fear of more layoffs coming in the near future. Therapy is not just for those who got laid off, but is a great tool for those dealing with the ongoing stress of a smaller team and the same amount of work.

How Does Therapy Help?

Therapy is a great tool not only for coping with the loss of a job but to help think more clearly about the situation, make decisions for the future, break unhelpful patterns, and boost self-esteem. Learn grounding techniques for when anxiety is high and to set boundaries around worrying and find time day-to-day to build off of the positives in life outside of work.

Here are some signs that it may be time to seek help: