Choose A Financially Sound Company

We outline the concrete, proactive steps you can take to reduce layoff risk by choosing the right company upfront.

• The most important controllable factor is company selection, with profitability as a key litmus test, since companies that spend more than they earn are far more vulnerable in tighter markets.
• Hiring quality and pace matter: overly easy interviews and hyper-aggressive headcount growth are red flags that often signal overhiring and future layoffs.
• Healthy companies tend to grow steadily rather than stagnate or attempt extreme, unsustainable expansion, especially given the high cost of tech talent.
• Clear product direction and strong leadership are critical, particularly for startups, and can often be evaluated through interviews, vision clarity, and how leaders communicate.
• There are two valid ways to assess company health—analyzing financials directly or reading secondary signals like employee quality, departures, and trusted insider perspectives—and combining both approaches gives the strongest signal.