onlycfo.io · 2025-05-30 · 370d

Are More Layoffs Coming? Early Warning Signs of Organizational Restructuring

The article identifies eight early warning signs that layoffs are imminent, including missed revenue targets, hiring/spend freezes, poor unit economics, and changes in management behavior. It provides a cost-cutting hierarchy prioritizing tool optimization and non-headcount waste before personnel reductions, and contextualizes layoff trends against historical 2020-2025 tech industry data showing elevated but declining layoff activity.

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Metrics in this report

People Cost as Percentage of Total SaaS Operating Costs

70percent

average

Software companies across stages

Q1 2023 Companies with Layoffs

115000count

Post-peak layoff activity

Q1 2025 Layoff Volume

10000employees

Recent quarter normalization trend

Q4 2022 Layoff Volume

125000employees

Peak tech industry layoff period