Layoffs are not fun. I can tell you that from personal experience. But I’ve also learned that layoffs aren’t the worst thing in the world. In fact, sometimes they’re a great thing. We need to keep this in mind when we hear about companies that lay off a large number of employees. Sometimes it can seem devastating, but in the long run it turns out to be for the best.
Here are three examples of when layoffs are a good thing:
1. More Efficiency
Layoffs aren’t always a sign of a business on the brink of bankruptcy; they’re often the complete opposite. Many companies invest in new technology that eliminates jobs. For example, when manufacturers automate their assembly lines, they reduce the need for some workers. And when companies invest in a warehouse management system, they don’t need as many warehouse specialists to do the same amount of work.
This is actually one of the best things that can happen to both companies and employees, even employees who are laid off. When a company cuts its costs and streamlines complex processes, then it has a better chance of being more competitive and giving customers a great deal on its products and services. As a company becomes more efficient and successful, it will almost certainly hire more employees than if it had remained how it was. Growing businesses hire while shrinking businesses do not. It’s common sense!
2. More Entrepreneurs
Some of the most successful entrepreneurs started their businesses after they were laid off. When you get the rug pulled out from under you, you might just feel inspired to follow your passion and build your own startup. I should include a caveat that entrepreneurship isn’t for everyone. It requires a detailed plan, a lot of work, and perseverance. But if you’re willing to dedicate yourself to a new business, maybe losing your job means it’s the right time to finally follow your dream.
3. Career Change
If you discover jobs in your field are getting more and more scarce, being laid off might be just the wakeup call you’re looking for to transition into a new field. For example, newspaper reporters can parlay their skills into blogging or some other field that requires a great deal of research and strong writing skills. Suddenly losing your job can help you realize that it’s time to change your career path and put your skills to better use. That’s better than spending years struggling to hold onto an obsolete position and slowly becoming less and less useful to a business.
Change can be painful, but it’s the only way people and companies can grow. If you hit a major hurdle in life, pick yourself up and keep moving forward. Overcoming that challenge could turn out to be the best thing that can happen to you or your business.