Layoffs and Office Politics: The Tug of War

Layoffs don’t just affect employees—they change the entire power balance in a company. When layoffs happen, managers face tough situations. After cuts, department managers start competing to keep or take FTEs (full-time employees) for their teams. This creates office politics that everyone feels.
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Layoffs: More Than Numbers
Officially, layoffs are about saving costs. But behind the scenes, they can be used to strengthen some managers and weaken others. Some managers try to keep their loyal employees while others get targeted. These decisions are often based on personal bias, not actual work.

After layoffs, every employee is very valuable. Managers compete to get more people on their teams. They may:
  • Question the value of other managers’ teams
  • Try to move good people to their own teams
  • Argue about which department deserves more help
The Circus of Perks, Promotions, and Politics
In this chaos, employees who want perks, promotions, or salary increases become easy targets. One manager raises questions about another team to protect their own interests. This creates a sad environment where workers feel demotivated. They feel all their hard work and years at the company don’t matter because decisions are made based on rumours or thinking that is not true, rather than actual performance.

This office politics harms company culture. Demotivated employees lose trust and don’t feel appreciated. Instead of teamwork, there is suspicion. This makes recovering from layoffs even harder for everyone.

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