Handling Layoff Fears

Workforce reductions are accelerating across sectors. Journalism faces existential threats as traditional media models collapse. In technology, automation and efficiency mandates displace roles once considered irreplaceable. Even stable industries like healthcare and education are not immune to restructuring.

This instability creates a pervasive “sword of Damocles” effect, where employees operate under constant threat, eroding focus and morale. The negative impacts on remaining employees are significant, including increased stress, decreased morale, and reduced quality of care in healthcare settings. Survivors of workforce reductions may experience negative work behaviours and attitudes, potentially undermining the intended economic benefits. The effects of layoffs can be long-lasting, affecting employees, their families, and communities. 

The anticipation of layoffs—not just the event itself—triggers unique psychological harm. Symptoms mirror chronic anxiety, avoidance of long-term planning, both professionally and personally. This “pre-traumatic” state can impair decision-making, relationships, and physical health. Studies have found that employees facing potential layoffs or privatisation experience increased psychological distress, anxiety, and depression compared to those not at risk. This anticipatory stress can lead to deterioration in self-reported health status, even before employment status changes. 

Employees with any form of layoff contact report more symptoms of poor health, depression, and eating changes than those without such contact. Additionally, job insecurity has been associated with increased psychosomatic symptoms, musculoskeletal pain, and marital discord. While some studies found no significant changes in blood pressure or health behaviours during anticipation of job loss, the overall evidence suggests that the mere anticipation of layoffs can trigger substantial psychological and physical health consequences.

The media and technology industries are facing significant challenges due to automation, AI, and economic pressures. Journalism is profoundly transforming, with digital technologies disrupting traditional models and forcing journalists to adapt to new platforms and skills. Job losses in journalism have accelerated, particularly during the COVID-19 pandemic. 

The rise of automation and AI threatens not only blue-collar jobs but also white-collar professions, potentially leading to widespread unemployment. Media workers face precarious conditions and struggle to develop survival strategies in a rapidly changing industry. The disconnect between academic research and the practical experiences of media professionals highlights the need for more grounded approaches to understanding and navigating these challenges. 

These trends reflect a broader crisis across industries, where technological advancements and economic factors are reshaping traditional roles and career paths. Research on layoffs and career transitions highlights the emergence of "boundaryless careers" as organisations restructure to meet global competition. While job insecurity has increased, many workers find new opportunities for growth in this environment. 

Post-layoff strategies to foster employee engagement include leadership communication, work-life balance, and professional development. Organisations can implement better practices in managing layoffs, such as early notification, severance pay, retraining programmes, and outplacement assistance. 

These approaches can help laid-off employees adjust to unemployment and find satisfactory reemployment. For those remaining in organisations, restoring trust and creating a culture of engagement through organisational commitment is crucial. Overall, while layoffs present challenges, they can also catalyse personal and professional growth, leading to improved work-life boundaries and opportunities for career pivots.

Job insecurity has become a defining workplace challenge, with significant impacts on employee well-being and organisational dynamics. Research shows that employees adapt to job insecurity by reducing work-life balance efforts and allowing work to permeate personal life, leading to increased work-nonwork conflict and emotional exhaustion. The issue is global and expected to grow in importance, necessitating further research on its antecedents, consequences, and moderators. 

Job insecurity affects individuals, organisations, and industrial relations, requiring strategies from employers, unions, and governments to mitigate its potentially destructive impact. In the context of globalisation and the New Economy, job insecurity has evolved from a temporary disruption to a structural feature of the labour market, shifting power dynamics towards employers and constituting a chronic stressor with long-term health implications for individuals and society. 

Job insecurity is the defining workplace challenge of this era. By focusing on adaptability, community support, and systemic advocacy, employees can reclaim power—even in uncertainty.

-  Psychology Today