Some companies treat layoffs like a twisted game of psychological warfare. You’re suddenly locked out of your account, emails start rolling in, and everyone’s left wondering if they’re still employed. It’s not just chaotic—it’s a deliberate strategy, and it says more about the company’s priorities than you might think.
This method—where everyone is left in the dark until the last minute—has become disturbingly common. The goal isn’t just to cut costs; it’s to instill fear, keep employees on edge, and reinforce a culture where job security is an illusion. But what drives this approach, and how does it actually harm the company in the long run?
Why Do Companies Lock Everyone Out Before Layoffs?
The most obvious reason is control. By locking out all employees at once, companies can prevent those who are being laid off from accessing sensitive data or causing disruptions. But there’s a darker motive at play: fear. When everyone is left wondering if they’ll be next, productivity drops, morale plummets, and the remaining employees are forced to work harder to “prove” their value.
Executives often justify this by saying it prevents laid-off employees from retaliating or taking company assets. But as one former manager pointed out, this could easily be handled overnight—removing access for affected employees while communicating the next day. The real reason? It keeps everyone terrified, which keeps them compliant.
The Hidden Cost: Productivity and Trust
Layoffs are already disruptive, but this method turns them into a full-blown crisis. Employees who survive the cuts are left traumatized, and their focus shifts from work to survival. Studies show that post-layoff productivity can drop by as much as 30% due to anxiety and uncertainty. Meanwhile, trust in leadership evaporates—why would anyone trust a company that treats its employees like pawns in a game?
The irony is that this approach often backfires. Companies that communicate layoffs more transparently (even if painful) tend to retain more talent and recover faster. But fear-based management persists because it serves the short-term interests of executives who prioritize optics over actual performance.
Is It About Bad Planning or Deliberate Cruelty?
Some argue that these chaotic layoffs are simply the result of poor planning. After all, why not just identify who’s being cut and handle it discreetly? The truth is more cynical. When leadership doesn’t know the plan until the last minute, it’s often because they’re reacting to investor pressure rather than making strategic decisions.
Worse still, mid-level managers are often left in the dark too. If your site manager or department head doesn’t know what’s happening, it’s a clear sign that the company is flying blind—and that usually means the cuts are arbitrary, not data-driven.
The Case of Epic Games: A Textbook Example
Take Epic Games, for instance. Layoffs there have become a recurring nightmare, with employees locked out and emails sent en masse. The company claims it’s restructuring, but the pattern suggests deeper issues: unsustainable growth targets, failed ventures (like the Cosmere movie studio), and a CEO who seems more interested in fighting with Apple than fixing internal problems.
Fortnite, once the golden goose, is now coasting on expensive licenses that are likely up for renewal. When those cut off, the layoffs will follow. And yet, the executives who made these decisions rarely face consequences. It’s a cycle of poor leadership masked as “necessary business decisions.”
What Can Employees Do to Protect Themselves?
In this environment, job security is an illusion. But there are steps you can take:
- Diversify your skills: Don’t rely on one company or industry.
- Network aggressively: Your next opportunity is often found through connections, not job boards.
- Read the signs: If leadership is secretive, investors are pressuring, or the company is coasting on past success, it’s time to start looking.
The most important lesson? No company owes you loyalty, but you don’t owe blind loyalty to a company that treats you like an expendable resource.
The Brutal Reality of Modern Employment
At the end of the day, layoffs are a business reality. But the way companies handle them reveals their true character. Fear-based management might work for a few quarters, but it erodes the foundation of any sustainable business: trust.
The next time you hear about a company locking everyone out before layoffs, remember this: it’s not just about cutting costs. It’s about control, fear, and a leadership that values optics over people. And in a world where talent has more options than ever, that’s a strategy destined to fail.