Bosses Are Firing Long-Time Workers Left and Right (And Honestly, We See Why)

It used to be that the best way to get ahead financially was to get in with a good company and build your career over decades, retiring with a long tenure and years of experience. But those in their 40s and 50s are finding that all of that time and loyalty they put in means nothing when it comes to layoffs.

First in, first out is no longer a guarantee. Today, more and more long-time workers are finding that they're the ones being targeted when it's time to restructure the company and let people go. Why is the tide shifting for long-tenured employees? Here are seven reasons bosses are letting these older workers go (and what they could do about it).

They're expensive

When a company is looking for areas to cut costs, one of the first line items is salaries. And, in many cases, the highest salaries belong to the older workers. They've been there for years, working their way up the totem pole and accruing benefits. That makes them an attractive target for cost-cutting. As Reddit user u/Kind-Conversation605 says, "Older workers have financial obligations on the books that these companies would like to get rid of. Most of them like me have a ton of sick time and PTO. Also, we're more experienced so we have higher wages."

They're reluctant to adopt AI

There's a reputation that older workers are less likely to adopt AI, which, in the eyes of a large company, might mean that they're less efficient and get less done in the same amount of time as a younger, more AI-savvy worker. But that might not be the reality, even if it's what's driving layoffs. Some studies show that older workers are more likely to learn AI, and, according to SHRM® Executive Network, 74% say they're eager to incorporate AI into their work.

They're not eager to learn new technology

Similarly to AI, many people think older workers aren't able to learn new technology, whether that's a new client management system or the latest project management software. But SHRM® Executive Network reports 81% actually feel confident in their ability to learn new technology, and, given their eagerness to stay competitive with younger workers, that could make them incredibly valuable in the workplace.

Their roles are being filled with cheaper workers

One of the most likely reasons older workers are being let go is that younger workers are able to do the same role for less. As Reddit user u/GeneralMatrim asks, "Or the older long term workers are on much bigger salaries doing the same job as their younger coworkers who are paid significantly less, so it makes sense to cut them first?" That doesn't mean it's the right decision, particularly given the years of experience and knowledge older workers bring to the table, but it's still often cited as a reason.

New roles are coming with broader responsibilities

When one person has been in a role for years, there are two ways it may go. The first is that the role expands over time. They take on more responsibilities and may grow into a leadership position.

The second is that they niche down into a hyper-specific role where they're a subject matter expert. That's great for getting the job done. However, as companies are asked to do more with less, they need fewer experts and more jack-of-all-trades. That means laying off the experienced workers and, instead, hiring for new, younger roles who are able to do a little bit of everything (often, with the assistance of AI).

AI is restructuring company headcount

There's a trend among large corporations to use AI as a reason to flatten their organizational structure and get rid of middle management, which is often occupied by workers in their 40s and 50s. They may be well-paid workers who are continuing to grow in their careers, and that's exactly why they're a target. But this is short-sighted. It's getting rid of the next generation of senior leadership before they reach the final stage of their career.

Their institutional knowledge is undervalued

A few years back, it seemed many companies were at risk of losing their institutional knowledge when workers left in the wake of the pandemic and remote work. But now, the tides have shifted, and corporations are devaluing institutional knowledge and choosing to let it go in the name of budget-saving measures. This could lead to companies making mistakes that their long-tenured employees could have saved them from, but they're all going to have to learn the same lessons again from scratch.

Bottom line

The best way to protect your role is to keep up with the times. Make it clear that you're not riding on the coattails of a long career. Instead, proactively learn how to leverage AI in your day-to-day and be the first to sign up for training on new technology.

Drill home how critical (and irreplaceable) your institutional knowledge is while finding a way to document it within a content management system that makes it clear how integral you are to the day-to-day. Make it clear that your value is built on years of experience, but also avoid being the highest-cost person in a role that could be automated.

But, even beyond doing your best to ensure your role isn't eliminated, look at ways to make extra money, whether that's through a side hustle, consulting, or looking for easy ways to make a couple of bucks here and there. This helps you build a cushion, just in case your position does end up on the chopping block.