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.
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