With a lot of market uncertainty in recent months, there has been a lot of talk about layoffs here in Canada. Recent Statistics Canada data showed a decline of 33,000 jobs (-0.2%) in March 2025, resulting in an increase in the unemployment rate to 6.7%. So, potential layoffs are on the minds of many Canadians, especially those in industries more prone to job loss.
So, who better to ask about this topic than our construction recruiters? They operate in an industry where layoffs are more common. We asked them to provide some insights about the common signs that an employer may lay off some of its employees.
Here’s the list of signs of an impending layoff:
1. The Company Is Experiencing Financial Troubles
If a company is reporting declining profits, consistent quarterly losses, or missing revenue targets, it may need to reduce expenses quickly. Budget cuts and the cancellation or delay of major projects are also strong indicators that they might need to cut labour costs.
2. They Impose A Hiring Freeze
If job postings disappear or remain unfilled for long periods, it could signal trouble. A sudden halt in hiring, including freezing promotions or raises, usually means the company is trying to control costs.
3. There Are Leadership Changes
Executives might become less visible or more tense than usual. If there’s a sudden influx of consultants, auditors, or a change in leadership, especially a new CFO or restructuring office, it may suggest that significant changes, including layoffs, are being planned.
4. Cost-Cutting Measures Are Implemented Across the Organization
When a company starts cutting travel, training, or employee perks like snacks and wellness benefits, it’s usually trying to save money. Downsizing office space or tightening expense policies are also red flags.
5. There Are Organizational Structure Changes
Major shifts such as mergers, acquisitions, or restructuring often precede layoffs. Departments may be combined or reorganized, and new performance metrics may be suddenly introduced to justify future cuts.
6. There are Layoff Rumours Internally
Where there is smoke, there is fire, right? Hearing consistent layoff rumours, especially from reliable internal sources or external media, is a strong warning sign. If competitors in the same industry are laying people off, it could increase the likelihood that your company will do the same.
A final word about potential layoffs
No one wants to get laid off. But if you suspect your company is considering laying off employees, it’s time for you to start considering your career options. Reach out to our recruitment team to give your job search a boost. We can help you find the right role for you.
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