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Change, Departure, Market

How Companies Decide Who Gets Cut

  • On April 30, 2023

In this time of layoffs, how do companies decide who has to go? WSJ reports that in the past companies often laid off the junior employees first. Now, however, these five factors guide who is laid off:

  • Deprioritized skills
  • Deprioritized business
  • Pay (too high)
  • Job performance (poor)
  • Percentage of the company cuts (across the board)

This list aligns with what I’ve seen in the recent tech layoffs of lawyers. People have been laid off as the company repositions. Junior people have been let go, as well as senior expensive ones.

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