You found the perfect job. The salary is right, the team seems great, and the offer letter is sitting in your inbox. Before you hit send on that acceptance email, there's one more thing you need to check: does this company have a habit of letting people go?
Free Tools That Show You the Real Story
Start with Layoffs.fyi, a crowdsourced database that tracks tech industry cuts. It's free, updated constantly, and shows you not just when companies had layoffs but how many people they let go. You can see patterns over time and compare companies side to side.
LinkedIn is your second stop. Search for the company name plus "layoff" or "affected" in posts. Current and former employees often share their experiences, and you'll get a sense of how recent cuts happened and which departments got hit hardest.
The WARN Act database is criminally underused. Every state maintains its own list of Worker Adjustment and Retraining Notification reports. Companies with 100+ employees must file these 60 days before mass layoffs. Google your state name plus "WARN notice database" and you'll find the official list. These notices tell you exact numbers, dates, and locations.
Glassdoor reviews spike after layoffs. Filter reviews to the past six months and look for phrases like "restructuring," "reorganization," or "performance improvement plan." When multiple recent reviews mention the same thing, pay attention.
Red Flags in the Money Trail
Funding rounds can predict layoffs months in advance. When a company raises money at a lower valuation than before (a "down round"), that's trouble. It means investors think the company is worth less than it used to be, and cuts usually follow.
Check Crunchbase for funding history. If you see multiple rounds close together, especially if they're getting smaller, the company might be burning through cash faster than expected. Series D, E, and F rounds often come with pressure from investors to "show profitability," which is code for cutting costs.
Public companies make this easier. Pull up their most recent 10-K or 10-Q filing on the SEC website. Look for the section on employee headcount. If it's dropping quarter over quarter, you know what's coming. Search the document for "restructuring charges" or "severance costs." Companies don't pay severance for fun.
Watch the executive team. When the CFO leaves suddenly, or when they hire a "turnaround specialist," those are usually advance warning signs. Companies don't bring in these types unless they're preparing for tough decisions.
Asking Without Sounding Paranoid
You can absolutely ask about layoffs in your interview without killing your chances. Frame it as caring about stability rather than being worried.
Try: "I noticed the company went through some team changes last year. Can you walk me through how those decisions were made and what the company learned from that process?" This acknowledges you did your homework while asking them to explain their thinking.
Another approach: "How does the company approach workforce planning during uncertain economic times?" This is a softball question that lets them talk about their philosophy without putting them on the defensive.
Ask about runway. "How many months of operating capital does the company currently have?" If they dodge this question or seem uncomfortable, that tells you something. Healthy companies with solid funding have no problem sharing this information.
Talk to people who survived previous layoffs if you can find them on LinkedIn. Message them directly and ask what the experience was like, how the company communicated, and whether they felt leadership handled it well. You'll learn more from a 15-minute call than from any interview.
Understanding WARN Notices
WARN notices are public records, which means you have every right to look at them. The federal requirement kicks in when a company lays off 50+ people at a single site, or 33% of the workforce if that's more than 50 people.
Each state runs its own database. California's is particularly good because it includes specific job titles and departments affected. New York's shows you exactly which locations are closing. Use these details to understand if the company cuts across the board or targets specific functions.
The 60-day advance notice requirement has exceptions. Companies can skip it in cases of "unforeseeable business circumstances" or natural disasters, but they have to prove it. If you see multiple WARN notices from the same company without the full 60-day warning, that's a management problem.
Look for patterns in timing. Some companies do annual "performance cycles" that are really just layoff schedules in disguise. If WARN notices cluster around the same months each year, you're looking at predictable cuts, not responses to market conditions.
Calculate Your Personal Risk Score
Not all roles are equally safe. Revenue-generating positions (sales, customer success) survive longer than cost centers (HR, internal tools). If you're joining a department that doesn't directly make money, your risk goes up.
Seniority matters less than you think. Companies often cut expensive senior people to save money, especially in tough times. Mid-level positions sometimes have better job security because they cost less but still get work done.
New hires are vulnerable. "Last in, first out" is real. If you join right before a downturn, you won't have the relationships, the proven track record, or the institutional knowledge that protects people during cuts. Companies protect employees they can't afford to lose.
Department size is another factor. Tiny teams (3-5 people) can disappear overnight. Huge departments (50+ people) usually lose some folks but survive. Medium teams (10-20 people) are weirdest because they can either be consolidated into other groups or split apart completely.
Do the math on recent growth. If a company tripled headcount in the past 18 months, they probably hired too fast. Rapid expansion almost always leads to "right-sizing" later. Check LinkedIn to see how many people joined in the past year versus the prior three years.
Negotiate Differently for Risky Situations
If you're joining a company with a sketchy layoff history, negotiate harder on the things that protect you. Standard severance is two weeks per year of service. Push for four weeks per year, with a minimum of three months regardless of tenure.
Acceleration clauses on equity matter more than the equity itself. Get language that says your unvested stock accelerates if you're laid off, especially in the first 18 months. Otherwise you walk away with nothing after building value for the company.
Sign-on bonuses beat salary increases when layoff risk is high. A $20,000 bonus hits your account immediately. A $20,000 salary bump takes a year to earn, and you might not be there that long. Structure it so you keep the bonus even if you're laid off before the first year.
Ask for a guaranteed notice period with pay. Some companies will agree to 30 or 60 days of paid notice before any termination. This gives you a paid runway to job search and isn't standard in most offers.
Get the offer in writing with specific language about role, department, and reporting structure. When companies reorganize, they sometimes claim your role "no longer exists" and that lets them avoid severance. Clear documentation of what you were hired to do protects you.
Remote work flexibility becomes valuable if layoffs happen. You can move somewhere cheaper, take another job on the side, or have more time for interviews. Companies are less likely to offer this after layoffs, so lock it in upfront.
Do the Research Before You Celebrate
That offer might be great. The company might be stable. But you owe it to yourself to spend a few hours checking before you commit. Pull up those databases, read those financial reports, and ask those questions. The best time to find out about layoff patterns is before you quit your current job, not after.
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