How to Predict Layoffs in 2025 (7 Signs to Watch For)

A recent report from Challenger, Gray, & Christmas just dropped, announcing that October 2025 was the worst layoff month in 22 years. Which industries got the most axes? No surprise, it’s technology, but also retailers, services, warehousing, consumer products, non-profits, and media were affected.

Since no one wants to wake up to a surprise email or a Zoom call from HR, workers have to be proactive in looking for layoff signs, especially in today’s job market. Here’s what to pay attention to to get ahead of potential layoffs so you can protect yourself financially and professionally.

1. Check Your State’s WARN Notices

The WARN Act (Worker Adjustment and Retraining Notification Act) requires mid- to large-sized companies to notify the state at least 60 days before any mass layoffs. Some states also have mini-WARN laws with stronger rules.

Here’s where to check: search “[your state] WARN notices” or use your state’s Department of Labor website. You’ll see which companies have announced layoffs, how many employees will be affected, as well as the location and timeline.

The site won’t always tell you everything, but it’s often the first public sign that a company is prepping to downsize.

2. Pay Attention to Internal Signals

Not all companies file WARN notices right away so sometimes the earliest signs will happen inside the company.

Keep an eye out for these red flags:

• Sudden hiring freeze announcements
• Spending cuts on travel, software tools, team budgets, etc.
• Projects are paused or canceled unexpectedly
• Contractors are let go first

Also, leadership could start using phrases like:

• “We’re focusing on efficiency.”
• “We’re restructuring to realign priorities.”
• “We need to do more with less.” (yikes)

These are usually the early “soft” signals that bigger cuts may be coming.

3. Watch How Your Team is Operating

Let’s go down to the department level, since the clues can be subtle.

Look out for these signs:

• Your workload drops suddenly or becomes chaotic
• Your manager stops giving future-focused guidance
• Long-term plans or roadmaps quietly disappear
• Key decision-makers or senior employees leave suddenly
• Meetings become shorter and less strategic
• You’re asked to document your work in detail

Most of the time, just trust your gut feeling. If your role starts feeling like it’s unraveling, it’s a major sign.

4. Check for What People Are Saying Outside the Company

Employees usually spot instability before leadership admits anything, so their reviews can show what’s happening under the surface.

Check sites like Glassdoor, Blind (anonymous workplace forum), and LinkedIn posts and comments from current or former employees.

Look for mentions of budget cuts, “reorgs,” feelings of low morale, unclear direction, and “voluntary resignations encouraged.”

Because if recent reviews start to say the same thing, then it’s most likely real.

5. Check for Financial Pressure

Another important signal? Whether your company is profitable.

Potential warning signs can include stock prices falling, investors pushing for “profitability goals,” if the company misses earnings projections, and if you see big layoffs in the general industry.

For example, when big tech began cutting roles to reduce costs, many smaller and mid-sized companies followed some months later.

6. Talk to Your Manager (Carefully)

You can get useful intel without directly asking if you’re getting laid off soon.

Something like:

• What are our team’s priorities over the next 6 months?
• Where should I be focusing my efforts?
• How is leadership measuring success right now?

If your manager can’t answer these, well, then you’d already know.

7. Protect Yourself Before Anything Happens

Once layoffs are announced, your leverage decreases fast, so it’s smart to prep in advance.

You can:

• Download your performance reviews & metrics (before access is cut)
• Update your resume & LinkedIn
• Start networking quietly
• Build an emergency savings buffer if you don’t already have one
• Start taking note of companies you’d want to apply to next

Just because you’re being prepared doesn’t mean layoffs are going to happen, but if it does, you’ll be ready.

The Money Move

You can’t always prevent layoffs, but you could see them coming if you know what to watch out for. Check WARN filings, notice internal cost-cutting patterns, suss out morale and workload shifts, check online, and keep yourself ready, just in case.

Don’t let complacency or your X years at the company fool you into thinking layoffs won’t happen. Especially in today’s market, when “job hugging” is real. Meaning people are clinging to their jobs due to fear of entering a terrible job market. Just stay aware and look for the signs to protect yourself!

Read more:
How to Handle a Layoff Without Losing Your Mind
5 Common Mistakes to Avoid When Tackling Debt