Why Good Employees Get Laid Off

It seems like we’ve been seeing a lot of layoffs in the tech sector lately. More than usual.

I’ve been thinking about this lately because I saw an analogy online that stuck with me. Someone said something like, “I’m a PhD and one of the world’s best electric vehicle scientists! Why would they lay me off?” I saw a response that was kind of insightful, “Well, if Ford decides to stop selling EVs, it doesn’t matter how smart you are.”

This is hard to talk about without sounding like a heartless corporate apologist. I’m not here to defend layoffs or tell you they’re good, actually. I just talked here about why a lot of the time they are the wrong decision. But I do think a lot of people misunderstand why they happen. A lot of the posts I saw online were, “I was really really good at my job! Rated highly! And they STILL let me go.”

But for a lot of these layoffs, its not like they looked at YOU personally and decided you have to go. They made broader decisions, such as eliminating a team, a function, or a role. And you just happened to be in that area.

This isn’t fair. I’m not saying it’s fair. But understanding it can help you in two ways.

First, it can help you stop taking it personally. A layoff doesn’t mean you failed. Sometimes it means someone in a boardroom decided to pivot, and your role was in the blast radius.

Second, it can make you more strategic about your own career. Pay attention to where your company is investing, and where it’s quietly pulling back. Read or watch the earnings calls. Notice which projects get resources and which get “reprioritized.” You can’t control executive decisions, but you can position yourself with better awareness.

Being excellent at your job matters. But so does understanding the larger game being played around you. The EV scientist is still brilliant. Their knowledge didn’t evaporate. But they were hired for a role that no longer exists in that company’s strategy.

Your skills are yours forever. Your role is owned by someone else, and you have little to no control over it.

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