The recent Bureau of Labor Statistics report showing that the U.S. labor market produced far-fewer new jobs than previously reported was anything but encouraging.

But it shouldn’t have been surprising. As Yahoo!Finance (“Layoffs soared 98% in 2023 with employers in cost-cutting mode”), Forbes (“2024 Had Most Job Cuts In 15 Years—With One Exception”), and many others have reported, employers have been reducing headcounts for some time now. This has been more-than offset by strong hiring in the health care and tech sectors, but now a clearer picture is emerging.

Of course, organizations (not just in the United States, but globally) announce downsizing plans, layoffs, and hiring freezes all the time. It’s a fact of life.

Another fact of life is that leaders at all levels have to deal with both the institutional and personal fallout when they downsize or lay people off.

Remember: There’s a difference. A layoff is usually temporary; downsizing is permanent. Each option has its own challenges.