In early 2024, Shao Chun Chen found himself packing up his desk at Google after an eight-year journey, a stint that ended not with a promotion, but with a layoff. The Singapore-based ex-Googler, previously an integral part of the sales team, didn’t just walk away with his belongings; he also left with valuable insights on the subtle signs that can signal a company’s financial distress.
Shao’s tenure at Google began in 2016, a time filled with career highs, after he transitioned from being an equity analyst at Merrill Lynch. His journey culminated in a sales leadership role, giving him a ringside view of the company’s operational shifts. Despite the abrupt end, Shao’s foresight allowed him to brace for the impact, thanks in part to a robust investment portfolio he had nurtured over the years.
The Honeymoon Phase: A Warning Sign?
Reflecting on his experiences, Shao identified a pattern that he likens to a “honeymoon phase.” This phase, characterized by rapid hiring and aggressive expansion, mirrors the unsustainable early days of a whirlwind romance. From 2019 to 2022, Alphabet, Google’s parent company, saw its workforce swell by 64%, a growth rate that, according to Shao, should have raised eyebrows about its sustainability.
“The pace was exhilarating but alarming,” Shao explained. “Like those intense early relationships, this sort of growth often leads to a boom and then a bust.”
Ghosting: The Silent Alarm
Another red flag Shao noted was akin to ‘ghosting’ in personal relationships—when one party suddenly becomes uncommunicative. In corporate terms, this translated to Google shelving expansion plans and altering commitments without clear explanations. “Plans kept changing, and investments were put on hold,” Shao recalled, stressing the importance of reading between the lines in corporate strategy shifts.
Cost-Cutting: The Ultimate Red Flag
Perhaps the most tangible sign of trouble, according to Shao, is cost-cutting. When a company starts to rollback perks, freezes salaries, or cuts back on operational expenses like travel or events, it’s a strong indicator of financial strain.
“Cutting costs is like someone stopping the effort in a relationship,” Shao remarked. “It usually means things aren’t going well.”
JUST IN: #Google lays off hundreds of 'core' employees and is moving some positions to #India and #Mexico for cheaper costs.
Don't be like google and layoff these rewards that can potentially pay big, sign up today, click here to sign up: https://t.co/b5MOs1z32n@getgrass_io pic.twitter.com/mguYYTc8Er
— Maxamillion (@Magobird) May 1, 2024
Listening to Leadership
Shao’s final piece of advice revolves around paying close attention to what company leadership is saying—or not saying. “If you hear vague responses or denials regarding rumors about financial health or layoffs, that’s a red flag,” he advised. The absence of clear communication can often speak volumes about a company’s real situation.
Google Insider’s Layoff Tips for Today’s Job Market
Shao, now transitioning to a career in digital marketing and content creation, emphasizes the importance of preparation and vigilance. Whether through maintaining a diverse portfolio, staying informed about industry trends, or simply observing changes in company policy, understanding these red flags can help employees anticipate and prepare for potential layoffs.
In today’s volatile corporate environment, the lessons from Shao’s experience at Google are not just cautionary tales but essential strategies for career resilience. As companies navigate through economic uncertainties, employees too must stay alert to the signs of change, ensuring they are never caught off-guard.
