Name: Choose A Financially Sound Company
Uploaded: 2026-01-04T12:02:21+00:00
Duration: 7 min 21 s
Description: We outline the concrete, proactive steps you can take to reduce layoff risk by choosing the right company upfront

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.

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