What is the 10% layoff rule?

The "10% layoff rule," popularized by former GE CEO Jack Welch, is a controversial management strategy demanding the annual firing of the bottom 10% of an organization's employees, regardless of overall company performance, to force continuous talent upgrading, though critics argue it fosters fear, harms morale, and drives out creative talent, with modern approaches often favoring development over forced cuts.

Is a 10% layoff big?

Consider the average annual employee attrition in a startup ranges between 13% and 25%. A 10% reduction-in-force (RIF) is less than the quantum of employees the business would have expected to lose throughout the year.

Are rifs usually permanent?

A reduction in force, also known as a RIF, is a strategic decision made by a company to reduce its workforce in order to cut costs or restructure. It differs from a layoff in that a RIF is typically a permanent reduction, while a layoff may be temporary and employees may be rehired.

What not to say during a layoff?

When firing someone, avoid saying anything that sounds apologetic, overly emotional, vague, or comparative (like "you're not like Mike"), as it undermines the decision or creates confusion; instead, be direct, focus on business reasons, and keep it brief and professional to prevent legal issues and allow the employee dignity. Stick to the facts, use "I" statements about the business decision (not "we"), and don't offer false hope, comparisons, or excessive details the employee can't process.
 

Who usually goes first in layoffs?

When layoffs occur, who goes first depends on company strategy, but often includes newer employees ("last in, first out"), high-cost senior staff, underperformers, or roles less critical to future goals, with factors like skills (especially AI), department (non-revenue generating), and legal compliance guiding decisions. While seniority (LIFO) is common and defensible, many companies use a mix of performance, skills, salary, and future business needs to decide, sometimes cutting managers or roles slated for outsourcing. 

Sharing YOY net worth as a divorced, 1 income, 2 kids, 4 layoffs, 9 jobs in my working career.

What is the #1 reason people get fired?

The #1 reason employees get fired is poor work performance or incompetence, which covers failing to meet job expectations, low quality work, or inability to learn new skills, closely followed by issues like chronic absenteeism, violating company policies, misconduct (dishonesty, harassment), and insubordination, though attitude and being a poor "fit" are also major factors. 

Is 2025 the worst year for layoffs?

For some zealous writers and analysts, 2025 has been the year of the recession. With more than one million job cuts in the US, as well as October ranking as the worst month for tech layoffs in more than 20 years, it's easy to see why – on the surface at least.

What are the red flags for layoffs?

Key public red flags include deteriorating financial results, hiring slowdowns, cost-cutting drives, structural shake-ups, and even news rumors.

What are HR trigger words?

HR trigger words are terms that alert Human Resources to potential policy violations, legal risks, or serious workplace issues like discrimination, harassment, hostile work environment, retaliation, bullying, toxic culture, or high turnover, prompting deeper investigation, while other phrases like quiet quitting, burnout, or "I can't" signal employee well-being or engagement concerns that need attention. Using these words can escalate situations, so understanding them helps both employees report serious issues effectively and managers address underlying problems. 

Is it better to resign on a Friday or a Monday?

Resigning on a Friday afternoon is often recommended to give your boss the weekend to process the news, allowing for a calmer start to the transition on Monday, but resigning on a Monday or Tuesday morning allows you to handle the announcement and leave the office the same day, potentially reducing awkwardness and giving you the whole week to mentally prepare, while a Monday resignation can also be easier for the company to plan the week's tasks around, say experts. Ultimately, the best time depends on your relationship with your boss and company culture, but aim for a time when you can have a professional, in-person/video conversation and avoid major holidays or project deadlines. 

Can I retire if I get a RIF notice?

An employee who has received a specific notice of termination in a RIF situation may use annual leave past the date the employee would otherwise have been separated in order to establish initial eligibility for immediate retirement, including discontinued service or voluntary early retirement (5 CFR 351.606 (b)(1)).

Is a RIF better or worse than a layoff?

A reduction in force (RIF) is the permanent termination of employees due to restructuring, the elimination of their department, or a lack of funding or available work to support those employees. A layoff, on the other hand, technically means that the termination is only temporary.

Do rifs get severance pay?

Because you have received a RIF Notice of separation and you do not meet the age and service requirements for Discontinued Service Retirement (DSR), you are entitled to receive severance pay when you separate from the federal service through RIF procedures.

Who goes first in a rif?

The agency releases employees from the retention register in the inverse order of their retention standing. For example, the agency begins with the employee who has the lowest standing in releasing employees from the competitive level as a reduction in force action.

What month do most layoffs occur?

Historic trends , data consistently shows December and January have the most layoffs of any months. A Resume.org survey shows what many workers are already feeling: 3 in 10 companies plan to lay off employees before year end.

What job pays $400,000 a year without a degree?

The most prominent "$400,000 job without a college degree" discussed in recent news is a Walmart Supercenter Store Manager, where compensation can reach that level through a combination of increased base pay (around $128k average), significant bonuses (up to 200% of base), and annual stock grants (up to $20k) for top performers, making the role lucrative for those rising from hourly work. Other paths to high income without a degree include skilled trades, tech sales, and specialized roles like power plant operators, often achieved through skills-based training, certificates, or apprenticeships rather than a traditional four-year degree.
 

What scares HR the most?

For HR pros who are concerned about compliance, here are 10 scary employment law violations you'll want to avoid at every turn.

• Slurs, stalking and shoddy pay: Culver's franchise settles slew of EEOC claims. ...
• Discount store Ollie's can't dodge lawsuit for quid pro quo sexual harassment scheduling scheme.

What toxic phrases do managers use?

Bad bosses may frequently use these three common toxic phrases, he says: "Don't forget that you're replaceable." "No one's coming to save you." "You've got to prove yourself."

Why is everyone getting laid off in 2025?

2025 has been the worst year for announced layoffs since 2009, according to a recent report. From tech to Hollywood, retailers and utilities, U.S. companies are intensifying job cuts and workforce reductions that began in 2024, as they focus on cost savings and leaner operations amid a challenging economic environment.

Who goes first during layoffs?

When layoffs occur, who goes first depends on company strategy, but often includes newer employees ("last in, first out"), high-cost senior staff, underperformers, or roles less critical to future goals, with factors like skills (especially AI), department (non-revenue generating), and legal compliance guiding decisions. While seniority (LIFO) is common and defensible, many companies use a mix of performance, skills, salary, and future business needs to decide, sometimes cutting managers or roles slated for outsourcing. 

What are the 5 stages of losing a job?

The 5 stages of losing a job, based on Elizabeth Kübler-Ross's model of grief, are Denial, Anger, Bargaining, Depression, and Acceptance, though people may experience them out of order, skip some, or linger in certain phases as they cope with the shock, emotional toll, and identity shift from job loss. Understanding these stages helps normalize feelings like shock (denial), frustration (anger), self-blame (bargaining), sadness (depression), and eventually moving forward (acceptance).
 

What is the most demanded job in 2025?

For 2025, the most in-demand jobs center on healthcare (Nurse Practitioners, Physician Assistants), technology (Software Developers, Information Security Analysts, Data Scientists, AI/ML Specialists), and skilled trades/renewables (Wind Turbine Techs, Solar Installers), alongside roles in management (Project Managers, Financial Managers) and growing areas like digital marketing, reflecting strong needs for tech expertise, data analysis, and essential healthcare services. 

Will there be a recession in 2025 or 2026?

Most forecasters predict the U.S. economy will avoid a major recession in 2025 and 2026, expecting moderate growth and a "soft landing," though uncertainties remain due to factors like inflation, trade policy (tariffs), and potential impacts from AI, with some economists seeing receding risks while others remain cautious about economic stability. While some expect a slowdown or "stagflation lite" in early 2026, the overall consensus leans towards continued, albeit slower, expansion, with a lower probability of recession compared to earlier in 2025, says J.P. Morgan. 

What jobs will disappear in the next 10 years?

Jobs that are disappearing: what professions won't be here in 10 years time

• Administrative assistants and legal secretaries.
• Cashiers.
• Parking enforcement workers.
• Banking professionals.
• Drivers.
• Watch repair technicians.
• Sports referees.
• Postal service workers.