Podcast

67. Layoff Anxiety

It’s no secret that work is more uncertain than ever. You may spend each day worrying, “will I be let go?” even if you’re a top performer. There’s a term for this: layoff anxiety. In this episode, Melody breaks down how to manage constant stress about your job security without letting it consume you or hurt your performance. 

What You’ll Discover:

  • Why 58% of companies plan layoffs in 2026 and how these cuts are different from previous years
  • How to separate real layoff warning signs from anxiety-driven overthinking
  • Specific questions you can ask your manager to gauge job security without sounding paranoid
  • What leadership actually looks for when making difficult staffing decisions

67. Layoff Anxiety Transcript

The day this episode comes out, we will officially be in the final stretch of 2024. Can you believe it? Because I honestly can’t. It feels like summer was just starting and here we are staring down the holidays already. Q4 is here, and today I want to talk about some things that might be on your mind, maybe even weighing on you, as the end of the year approaches. 

But before we dive into all of that, let’s do a little personal catch-up, shall we? Because what’s so fun about doing this show for me is that I get to connect with you further. You send me messages and emails and notes about what resonates with you, what you’re applying from these episodes. That always helps me feel more connected to you, and I hope through this show you’re also enjoying getting to know me, Melody, as a person a bit better too.

So on the personal side, we just got back from a trip to Ohiopyle, PA. We did a road trip out there. It was absolutely beautiful because we timed it perfectly to see the leaves changing. But we were actually there to see four different homes designed by Frank Lloyd Wright, who’s probably the world’s most famous architect, as well as two designed by one of his apprentices. You might know his crown jewel, Fallingwater, is located there. But what you might not know is that there are several other Frank Lloyd Wright homes right in that same area, so if you ever have the chance to go, absolutely make a weekend out of it. It’s so worth it. Fallingwater is absolutely mind-blowing – I won’t go too much into detail here – I can’t stress enough how incredible it is to see in person because the ingenuity and beauty of the design was just decades before its time. Truly masterful. The way he integrated the house with the natural landscape, the way the water flows right underneath and through the structure – it’s like nothing you’ve ever seen. Whenever we visit Frank Lloyd Wright sites, we always choose the in-depth guided tour if we can because you get to see other rooms that aren’t on the basic tour, and you get so many great stories from the guides. They know all these fascinating details about the construction, but about Wright himself – his mind, his genius, and his controversy too. 

That trip was such a nice reset because it’s been a ridiculously busy and rewarding time in the business as well. We just kicked off the next cohort of RESILIENT, which is my program that shows Sensitive Strivers how to get out of their own way and manage their insecurities at work. We’re also well into the inaugural round of my newest program, Speak Like a Senior Leader. And let me tell you, it has been awesome so far because everyone has jumped in with such enthusiasm, with such clear commitment and dedication to no longer being that invisible workhorse who has all the expertise but doesn’t know how to articulate it, how to present themselves, or how to influence in the way they want to.

We’ve already had clients getting some really big wins. People are asking their managers to take on bigger accounts, they’re landing second interviews for roles they really want, they’re having those candid conversations with their VPs about their career growth instead of letting it get pushed aside for yet another year. We’ve had people speaking in front of city councils without their hearts beating out of their chests, and leaders finally advocating for themselves in ways they never thought possible.

I actually want to share this win that comes from a client in the program – I’ll call them A to protect their privacy. They sent me this message, and I think it perfectly captures what’s possible when you start applying these communication strategies:

“At a facilitated gathering of about 50 highly influential people, I gathered my courage and raised my hand to introduce an issue affecting our area to the Chief Legal Officer. For the very first time, I tried out these strategies from Melody, and the result was a personal invitation from the Chief Leader Officer to meet with her this coming week so she can learn more about the issue I introduced! People I hadn’t ever met came up to me after the formal program was over to learn more about the issue. Doors opened. It took me all of 60 seconds. I am astonished.”

How cool is that? So if you’re hearing this and you’re thinking, “Where do I get in on Speak Like a Senior Leader?” head to speaklikeaseniorleader.com and join the waitlist. You’re going to want to do that as soon as possible, because I have something up my sleeve. I’m considering opening the doors briefly in the coming weeks for super early birds who want to join the January cohort at the 2024 rate. So if you’ve been thinking about it, don’t wait. Get on that list.

Here’s the thing though – for a lot of people, Q4 brings a lot of mixed feelings. There’s the motivation of really wanting to crush the end of the year, to set yourself up for success for the next one. Maybe you’re thinking about your annual review, or you’re trying to hit those year-end goals, or you’re already starting to think about what you want to accomplish in 2025.

But for a lot of people, especially this year, there’s also a lot of trepidation. There’s this underlying anxiety that seems to ramp up as we head into the final months of the year. And I’ve been hearing about this from so many of you – in my DMs, in emails, in conversations with clients. There’s this feeling of uncertainty that’s been building, and it’s affecting how people are showing up at work and how they’re thinking about their future.

Some of this is the normal end-of-year pressure that we all feel. The rush to finish projects, the performance reviews, the budget planning for next year. But there’s something else happening too, something that’s been brewing all year and is really coming to a head now as we approach 2026.

And that something is layoff anxiety. I’m talking about that gnawing worry in the back of your mind about job security, that constant low-level stress about whether your position is safe, whether your company is going to make cuts, whether you might be next.

Now, I know just hearing those words – “layoff anxiety” – might make some of you immediately tense up. And if that’s happening, just take a breath with me for a second. Because here’s what I want you to know: if you’re feeling this way, you are absolutely not alone. This isn’t something you’re making up in your head, and it’s not a sign that you’re being dramatic or overthinking things.

The reality is that layoff anxiety has become incredibly common, and for good reason.. I have one client whose company is going through it’s 3rd re-org this year, and as is typical, they’ve let go several people with each one. I have another client who is on her 8th boss in the last 3 years. Some of them were cut and when that happens, it’s natural to wonder “will I be next?” 

We’ve seen wave after wave of layoffs across industries over the past few years. Some stats for context: 

  • Over 10 million workers have been laid off this year as of June and over 3500 have announced mass layoffs since the beginning of the year. 
  • Tech is usually the bellwether where we see the first cuts, but this years we’ve had huge federal workforce reductions and it’s not looking good that any of this will slow down
  • ~ 58% of U.S. companies say they plan to lay off employees in 2026 thanks to economic uncertainty, trade/tariffs policy, and automation / AI replacing roles. 

And here’s what’s particularly challenging about this moment we’re in: many of these layoffs aren’t following the old patterns. It used to be that if you were a high performer, if you had seniority, if you were in a “safe” department, you felt relatively secure. But that’s not necessarily true anymore. We’re seeing companies eliminate entire departments, let go of people who just got promoted and brilliant top performers, cut roles that seemed essential just months before.

So the fear you might be feeling? It’s actually a pretty rational response to what’s happening in the workplace right now. Your nervous system is picking up on real signals in the environment and trying to keep you safe. Having some concerns about job security right now? That’s completely normal and actually wise. 

But there’s a difference between healthy awareness and it morphing into layoff anxiety that’s taking over your life. That state of constant alertness is exhausting and totally unsustainable, and it can start to affect every aspect of how you show up at work. 

  • Maybe you’re finding yourself checking the news obsessively getting sucked into every financial or work outlook headline 
  • Maybe you’re overanalyzing every email from leadership, every closed-door meeting, every budget conversation
  • Or maybe it’s showing up in more subtle ways. You’re not speaking up in meetings like you used to because you don’t want to rock the boat. You’re avoiding taking on challenging projects because what if you fail and that gives them a reason to let you go? Perhaps you’re working longer hours, trying to make yourself indispensable, or you’re hesitating to take vacation time because you want to stay visible and available.

And then there’s the mental load of it all. The constant what-if scenarios running through your head. What if they eliminate my role? What if I get called into HR? What if I have to explain a gap in employment to future employers? What if I can’t find something else that pays as well? What if, what if, what if. And of course, this doesn’t stay at work. You might find yourself snapping at your partner or your kids because you’re carrying all this tension. Or maybe you’re having trouble concentrating on anything that isn’t work-related because your brain is stuck in this hypervigilant mode.

And here’s something that makes this particular type of anxiety so tricky: there often isn’t a clear timeline or endpoint. With other workplace stressors, you usually know when they’ll be resolved. The big project will launch, the busy season will end, the difficult client will move on. But layoff anxiety can feel endless because you don’t know when or if the threat will materialize, and you don’t know when it’ll be safe to relax.

So today, I want to talk about how to navigate this. How to manage it so it doesn’t consume you, how to channel it in productive ways, and how to take care of yourself and still show up with confidence and influence even when you don’t know what’s coming next. 

Let’s start with something that might sound counterintuitive: I want you to give yourself permission to feel anxious about this. I know that sounds backwards, but hear me out. One of the things that makes anxiety worse is when we fight it or judge ourselves for having it. When you tell yourself “I shouldn’t be worried about this” or “I’m being ridiculous,” you’re essentially adding shame on top of anxiety, which just creates more stress. Feeling concerned about job security right now is a completely rational response to what’s happening in the economy. Your brain is doing exactly what it’s supposed to do – it’s trying to keep you safe by staying alert to potential threats. So instead of fighting that response, acknowledge it. Let it be there. You might even say to yourself, “Of course I’m feeling anxious about this. There’s a lot of uncertainty right now, and my brain is trying to protect me. It’s just doing this job even if it has a funny way of going about it.” It’s like letting a little steam out of a pressure cooker – when you stop trying to hold it all in, some of that intense pressure releases juuuust a little bit. This doesn’t mean wallowing in the anxiety or letting it run your life. It just means accepting that it’s there without heaping extra judgment on top of it. 

I also mentioned before how when you’re in the grips of layoff anxiety, it’s so common to start reading into everything and jumping to conclusions, even when no one has officially said a word about downsizing, changes or cuts. Your manager seems a little stressed in your one-on-one? Must be because they know something you don’t. There’s a leadership meeting you’re not invited to? Obviously they’re discussing who is on the chopping block. Your CEO mentions “optimizing resources” in the all-hands? You assume that’s definitely code for bad news coming. You’re scanning for threats everywhere, and you become really good at turning every little thing into a danger signal even when it’s not. 

So how do you separate fact from fiction when your brain is in hypervigilant mode? First, you need to get really clear about what constitutes actual information versus what’s just speculation or fear.

Facts are concrete, verifiable pieces of information. “The company announced they’re restructuring the marketing department.” “My manager said we’re pausing hiring for Q1.” “The earnings report showed a 20% decline in revenue.” These are things that were actually communicated, either publicly or directly to you. Fiction – or let’s call it interpretation – is the story your brain creates around those facts. “We had fewer people at the holiday party, so they’re probably cutting costs.” “My project got deprioritized, so they must be planning to eliminate my role.”The problem is that when you’re anxious, your brain treats interpretations like facts. It feels just as real, just as certain. But interpretations are filtered through your current emotional state, and anxiety has a way of making everything look more threatening than it actually is.

Now, I’m not saying you should ignore everything that isn’t explicitly announced. Sometimes your gut is picking up on real signals. The key is not basing your entire assumption on a single data point and turning that into evidence of impending doom. 

So when you notice yourself getting worked up about something, pause and ask yourself a few questions: “Is this something that was actually said or announced, or is this me reading between the lines?” But then go deeper. “If I’m reading between the lines, what am I basing that on? Is this one isolated incident, or part of a pattern? What are the other possible explanations for what I’m observing?”

Let’s say your project gets deprioritized. Step back and look at the bigger picture. Are other projects getting deprioritized too? Is this happening across multiple departments, or just in your area? Did leadership communicate a shift in company strategy that might explain this? Is there a seasonal reason, like end-of-year budget freezes? Has there been a major client change or market shift that would naturally affect priorities?

The difference between jumping to conclusions and picking up on real signals often comes down to context and patterns. One concerning observation probably doesn’t mean much. Multiple concerning observations that all point in the same direction? That might be worth paying attention to. If your project gets deprioritized AND hiring freezes have been announced AND the company just missed their quarterly targets AND leadership has been talking about “right-sizing” – well, that’s a pattern worth noting. 

Instead of just swirling in the stories in your head, also diplomatically probe for what might really be going on. Of course most people can’t just ping their boss and say “hey are layoffs coming?” but there are tactful ways you can ask about your role, your performance, and the company’s standing. You can ask: 

  • With all the changes happening in our industry, what do you think is ahead for our team? 
  • Are we looking at any major organizational changes in the coming months? 
  • Given the current economic climate, are there any roles or departments that might be at risk?
  • I noticed we’re not replacing Tom when he leaves next month – is that part of a broader cost reduction? Or I saw the email about cutting travel expenses – are we looking at other ways to reduce costs too?
  • I know there’s been talk about ‘right-sizing’ – how will that affect our department?

Earlier I also mentioned that when layoff anxiety has a hold on you, you succumb to working longer and harder to PROVE you’re indispensable. This is one of those responses that feels logical in the moment but can actually backfire in ways you don’t expect. If you’re constantly in the weeds, working all hours, and taking on every single task that comes your way, leadership might actually see that as someone who doesn’t know how to prioritize or delegate. They’ll wonder, “If this person is already overwhelmed, what’s going to happen when we really need them to step up?”

While you’re buried in tactical execution, you fall behind on the big-picture thinking. You’re not setting direction for your team, you’re not contributing to strategic discussions, you’re not identifying opportunities or solving complex problems. Leadership stops seeing you as someone who can think at a high level and starts questioning your ability to lead in the first place.

Instead You need to be able to push back when the VP gives you five competing priorities. You need to keep your cool when tensions are high, everyone is stressed, and not get defensive or flustered when someone challenges your decisions. You need to be able to clearly package and express the business value of what you and your team are creating – not just list out all the tasks you completed,not just list out all the tasks you completed, but show how your work moves the needle on what the company actually cares about.. This is exactly what we focus on in Speak Like a Senior Leader – how to communicate with that kind of clarity and confidence so you’re seen as someone who adds value, not just someone who works really hard. If you haven’t already, definitely get on the waitlist at speaklikeaseniorleader.com.

And finally, you have to create your own career insurance. Call me a pessimist, though I prefer pragmatist, but you have to allow yourself to actually think through and prepare for the worst case scenario. So yes, let’s say you get let go tomorrow. What would you do next? What can you get in place NOW so that your future self will thank you if that should come to pass. Now’s the time while you have access to metrics to dust off your resume, to refresh your Linkedin, to start reconnecting with old colleagues to reinvigorate your network so you’re not starting from zero. Yes, having a back up plan is great, but so much of layoff anxiety comes from feeling like you’d be completely caught off guard, like you’d be scrambling to figure out what to do next.  So give yourself the gift of feeling more calm and reassured every single day knowing you could spring into action if you needed it. 

As we wrap up, let me be clear, that this episode is not meant to scare you or fear monger. It’s to help you deal with the reality you may be facing day in and day out. I’d be doing you a disservice if I just ignored that everything feels uncertain right now and told you not to worry, that you’re amazing and you’ll be fine! My hope is that you never have to use these strategies in the first place, but that they will serve you well if you do. 

That’s all for today, I’ll catch you in the next episode! 

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