The Sword of Damocles at Work: The Human Cost of Delayed Layoffs

Alvaro Montoro Posted on Jul 10
- Originally published at alvaromontoro.com The Sword of Damocles at Work: The Human Cost of Delayed Layoffs #career #leadership #news #watercooler *Over a decade ago, my employer announced layoffs that would happen in waves. Every few months another round arrived. Nobody knew the criteria, who would be affected next, or when. The uncertainty was exhausting and took a toll on everyone. This week, Xbox announced a similar plan, and it brought those memories back.* Fifteen years ago, the company I worked at announced 38,000 layoffs that would happen in different stages. That was a nerve-wracking experience. They started with 10,000, then months later another 8,000, then months later another 9,000... You never knew the criteria, how or when they would happen. What I remember from then was the angst of not knowing what was going to happen. The figurative sword of Damocles hanging over our heads, and the helplessness of it all. I don't wish that feeling on anyone. At one point, adding layoffs, early retirements, and turnover, they reached the magic number of 38,000. When asked if layoffs would stop then, the explanation we received was that the target referred to layoffs, not overall headcount reduction. So layoffs continued while hiring accelerated. During that period, many teams were involved in onboarding and training new employees and contractors, even as layoffs continued. Two weeks after training the new contractors, nearly my entire department was laid off, including myself. Only one person per project remained. It was the last batch of layoffs from the original 38,000 they had announced. My wife was 6-7 months pregnant. We lost our main source of income and the health insurance right at the moment we needed it the most. The company gave me a severance and offered $2,000 for not coming back in two years. I was interviewing internally so I rejected it. In hindsight, that was a mistake. The internal process was rejected after going through a few good interviews. I never received an explanation. So my only option was taking a severance that was shorter than what it could have been, and looking for a new job. But that was then. It was a hot job market for software developers, and I was lucky to get interviews within weeks, a couple of offers in a matter of a month, and start a new job in 2 months. Today, the situation is different. This week, Xbox announced 3,200 layoffs. About half took effect immediately, while the remaining cuts are expected to happen over the next 12 months. No one knows when, who, why, or how. And, from experience, delayed layoffs like this are tough. An unnecessary burden. The current job market for software engineers is... "interesting." While during my layoff I wasn't especially worried about finding a job (it was more of a matter of "when" than "if", and we had a baby waiting around the corner), the Xbox layoffs (as many of the current layoffs) come at a time in which "when" or "if" are blurry. There are jobs... but they are tougher to get and come with many conditions and changes. Layoffs are always painful. But spreading them over months, creates a different kind of burden: uncertainty. It builds angst and stress that no one should have to endure, and that doesn't help anyone. Not the people who leave, and not the people who stay. To all impacted, I'm sorry you're going through this. Best of luck to everyone. The DEV Team Promoted
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- Report abuse Thank you for sharing such an excellent post. I really enjoyed reading it. I’m a Python Full-Stack Engineer with over 10 years of experience designing and building scalable software solutions for clients across a variety of industries. Along the way, I’ve learned that successful projects depend not only on strong technical execution but also on creating real business value. With my recent contract completed, I’m exploring new opportunities to collaborate with professionals who value innovation, practical problem-solving, and long-term partnerships. I enjoy discussing ideas that combine technical excellence with sound business strategy, creating outcomes that benefit everyone involved. I believe every connection has the potential to become something meaningful. If you're interested in exchanging ideas, exploring opportunities, or simply connecting with someone who enjoys building impactful technology, I'd be happy to hear from you. Wishing you success in your future endeavors, and I look forward to connecting. Code of Conduct
- Report abuse Are you sure you want to hide this comment? It will become hidden in your post, but will still be visible via the comment's permalink. Hide child comments as well For further actions, you may consider blocking this person and/or reporting abuse *Over a decade ago, my employer announced layoffs that would happen in waves. Every few months another round arrived. Nobody knew the criteria, who would be affected next, or when. The uncertainty was exhausting and took a toll on everyone. This week, Xbox announced a similar plan, and it brought those memories back.* Fifteen years ago, the company I worked at announced 38,000 layoffs that would happen in different stages. That was a nerve-wracking experience. They started with 10,000, then months later another 8,000, then months later another 9,000... You never knew the criteria, how or when they would happen. What I remember from then was the angst of not knowing what was going to happen. The figurative sword of Damocles hanging over our heads, and the helplessness of it all. I don't wish that feeling on anyone. At one point, adding layoffs, early retirements, and turnover, they reached the magic number of 38,000. When asked if layoffs would stop then, the explanation we received was that the target referred to layoffs, not overall headcount reduction. So layoffs continued while hiring accelerated. During that period, many teams were involved in onboarding and training new employees and contractors, even as layoffs continued. Two weeks after training the new contractors, nearly my entire department was laid off, including myself. Only one person per project remained. It was the last batch of layoffs from the original 38,000 they had announced. My wife was 6-7 months pregnant. We lost our main source of income and the health insurance right at the moment we needed it the most. The company gave me a severance and offered $2,000 for not coming back in two years. I was interviewing internally so I rejected it. In hindsight, that was a mistake. The internal process was rejected after going through a few good interviews. I never received an explanation. So my only option was taking a severance that was shorter than what it could have been, and looking for a new job. But that was then. It was a hot job market for software developers, and I was lucky to get interviews within weeks, a couple of offers in a matter of a month, and start a new job in 2 months. Today, the situation is different. This week, Xbox announced 3,200 layoffs. About half took effect immediately, while the remaining cuts are expected to happen over the next 12 months. No one knows when, who, why, or how. And, from experience, delayed layoffs like this are tough. An unnecessary burden. The current job market for software engineers is... "interesting." While during my layoff I wasn't especially worried about finding a job (it was more of a matter of "when" than "if", and we had a baby waiting around the corner), the Xbox layoffs (as many of the current layoffs) come at a time in which "when" or "if" are blurry. There are jobs... but they are tougher to get and come with many conditions and changes. Layoffs are always painful. But spreading them over months, creates a different kind of burden: uncertainty. It builds angst and stress that no one should have to endure, and that doesn't help anyone. Not the people who leave, and not the people who stay. To all impacted, I'm sorry you're going through this. Best of luck to everyone. The DEV Team Promoted
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- Report billboard Architect A Personalized Multi-Agent System with Long-Term Memory In support of our mission to accelerate the developer journey on Google Cloud, we built Dev Signal — a multi-agent system designed to transform raw community signals into reliable technical guidance by automating the path from discovery to expert creation. Read more → *Over a decade ago, my employer announced layoffs that would happen in waves. Every few months another round arrived. Nobody knew the criteria, who would be affected next, or when. The uncertainty was exhausting and took a toll on everyone. This week, Xbox announced a similar plan, and it brought those memories back.* Fifteen years ago, the company I worked at announced 38,000 layoffs that would happen in different stages. That was a nerve-wracking experience. They started with 10,000, then months later another 8,000, then months later another 9,000... You never knew the criteria, how or when they would happen. What I remember from then was the angst of not knowing what was going to happen. The figurative sword of Damocles hanging over our heads, and the helplessness of it all. I don't wish that feeling on anyone. At one point, adding layoffs, early retirements, and turnover, they reached the magic number of 38,000. When asked if layoffs would stop then, the explanation we received was that the target referred to layoffs, not overall headcount reduction. So layoffs continued while hiring accelerated. During that period, many teams were involved in onboarding and training new employees and contractors, even as layoffs continued. Two weeks after training the new contractors, nearly my entire department was laid off, including myself. Only one person per project remained. It was the last batch of layoffs from the original 38,000 they had announced. My wife was 6-7 months pregnant. We lost our main source of income and the health insurance right at the moment we needed it the most. The company gave me a severance and offered $2,000 for not coming back in two years. I was interviewing internally so I rejected it. In hindsight, that was a mistake. The internal process was rejected after going through a few good interviews. I never received an explanation. So my only option was taking a severance that was shorter than what it could have been, and looking for a new job. But that was then. It was a hot job market for software developers, and I was lucky to get interviews within weeks, a couple of offers in a matter of a month, and start a new job in 2 months. Today, the situation is different. This week, Xbox announced 3,200 layoffs. About half took effect immediately, while the remaining cuts are expected to happen over the next 12 months. No one knows when, who, why, or how. And, from experience, delayed layoffs like this are tough. An unnecessary burden. The current job market for software engineers is... "interesting." While during my layoff I wasn't especially worried about finding a job (it was more of a matter of "when" than "if", and we had a baby waiting around the corner), the Xbox layoffs (as many of the current layoffs) come at a time in which "when" or "if" are blurry. There are jobs... but they are tougher to get and come with many conditions and changes. Layoffs are always painful. But spreading them over months, creates a different kind of burden: uncertainty. It builds angst and stress that no one should have to endure, and that doesn't help anyone. Not the people who leave, and not the people who stay. To all impacted, I'm sorry you're going through this. Best of luck to everyone.