Instead of 2008 - 2009 Carnage, Stealth Even About Stealth Cuts

"Are there more layoffs and stealthing than we even realize.....meaning instead of doing a 30-man reduction at one time, there are firms who every week are just laying off an associate here, an associate there so as to try to hide around any reporting?" -  Post of Fishbowl Big Law, June 23, 2023 - Similar observations on other professional anonymous networks

Business does learn. The carnage of extreme manpower cuts in 2008 - 2009 brought bad press. And then when the market began recovering it was difficult for those Big Cutters to get quality professionals to come abroad. Latham, which cut 440 in one grim day, was the classic example of that. In contrast, Paul Weiss was a hero. It didn't conduct a Reduction-in-Force. 

The comments coming in to Fishbowl posts and what I am hearing through those on my networks indicate that right now there is plenty of cutting going on. However, it's done in a very clever way: a few at a time, and supposedly based on perforrmance reasons. Previously, many of them had been told by their supervisors that they were in good shape. Then abruptly came the negative review, the PIP (Proposal to Improve Performance) and then the one-on-one quiet meeting with human resources. 

Only those on the scene and who network with those let go are aware of the dynamic. No bad press. And there will be no obstacle in future recruiting. This is being picked up in the New York City law-firm sector. It is also becoming standard in other industries. Read Reddit Career Guidance. Read Fishbowl Consulting. Even read Fishbowl Startups.  Doing so well, then ...

If we wanted to view this through the perspective of drama we might label the phenomenon "The Disappeared." This model of The Disappeared may be how businesses adjust to the era of generative AI. 

As watchers of that technology such as McKinsey predict, white collar career paths are being blown up. Many of the roles of the Knowledge Worker can be replaced by AI. 

Before IBM hires humans in some categories it first analzes if the task could be done by AI. Meanwhile, there are quiet moves such as rescinding a job offer. 

In Vanity Fair, it's noted:

"Every media outlet is fucked right now ..."

In media, essentially only those sitting pretty are brandnames and those with family ties. But maybe not for long. Warner CEO David Zaslav is not doing so hot. In this article published in O'Dwyer's Public Relations I discuss the new intolerance for what doesn't seem to be panning out. 

And, come on, many of those geniuses on Wall Street are on short time. JPMorgan Chase, which conducted the old-fashioned layoff - announced and called it that - has advertised help-wanted for 3,600 AI-related positions.

From my coaching this is obvious: Most vulnerable are those over-40 at a nice middle-class salary. Their tasks can be either done by AI and/or a worker with a few years experience who grabs the job for a third of the salary. 

The solution: Multiple sources of income. One of those should be your own business. That can prevent being without income, no matter what stealth moves are going down at the day job. 

  

2023. It’s the year of AI, along with uncertainty, inflation, war and more. Jane Genova provides you with a complimentary check-in for your organization’s communications and your own career. It’s free. Content-creation and coaching provided on a sliding-scale fee basis. (for appointments text 203-468-8570 or janegenova374@gmail.com)