What Is RIF? How to Deal With a Reduction in Force

Key takeaways

Reduction in force (RIF) is a corporate term indicating a permanent decrease in the total number of workers a company employs. ’

• Worldwide, an estimated 22 percent of jobs will change, with the creation of 170 million new roles and the reduction of 92 million roles by 2030 [1].

• A RIF is the elimination of your job role, while a layoff indicates the possibility of becoming re-employed in your role in the future.

• You can upskill and reskill if your role is at risk of reduction, allowing you to pivot to a different role or even change careers. 

Discover the implications of an RIF, as well as what you can expect if you’ve been impacted by one. Afterward, if you want to learn essential career development skills, consider enrolling in the Career Discovery Specialization to analyze your strengths, find a mentor, and create a structured career plan.

What is a reduction in force? Reduction in force meaning

Reduction in force involves a company terminating one or more employees with no intention of refilling those positions. With a RIF, a permanent reduction in headcount occurs, either company-wide or within a designated department or team.

Typically, a RIF occurs as a result of budget changes, restructuring, mergers and acquisitions, or permanent closures. RIFs do not typically imply employee fault and are not necessarily a reflection of any individual’s performance.

What is the difference between a layoff and a reduction in force?

In modern usage, reduction in force and layoff are seen as the same thing. However, while a RIF has always been seen as a permanent termination, a layoff traditionally carried the possibility of future re-employment.

Now, if a layoff carries any impermanence, it’s typically referred to as a temporary layoff. More commonly, a company will use the term furlough to refer to a temporary pause in a worker’s employment.

What to do after a RIF

Getting laid off in a reduction in force can be an emotional time. Every individual is going to experience the aftermath of a layoff differently, depending on their unique circumstances and needs. It’s common to feel anxious, unfocused, irritable, or even depressed during this period. Ultimately, losing your job is a sudden transition that disrupts routines and shifts your anticipated long-term trajectory.

While this time away from work is likely unexpected, it can also provide an opportunity to assess your career goals, develop new skills, and prepare to reenter the workforce with a new sense of intentionality.

After experiencing a reduction in force, there are a few things you can do as you prepare to strategically reenter the job market.

1. Reflect on your career goals. 

Give yourself space to consider what you want to achieve and how you can do it. What did you enjoy about your last role? What would you like to be different in your next one? What kind of roles might help you work toward any specific career goals you may have?

Your career goals may have changed since the last time you looked for a job. Take the time now to reevaluate, reset, and refocus your goals so that you can target your job hunt to roles that align with your current goals and values.

2. Develop your skill set. 

Although going through a layoff can be tough, it can also be a good time to reflect on hiring trends in your individual line of work and your industry at large to strategize your next steps.

Due to ongoing shifts in technology, the World Economic Forum estimates that 22 percent of global jobs will change, with the creation of 170 million new roles and the reduction of 92 million roles by 2030 [1]. If your layoff is part of a larger trend of layoffs in your line of work or your industry, it may be worth considering what new skills you can gain to remain a competitive candidate.

Upskilling and reskilling are two ways you might consider expanding your skill set. Upskilling involves elevating skills you already have, while reskilling involves learning entirely new skills. If you imagine your skills as building blocks, then upskilling adds height while reskilling adds width.

Learn more:

When to consider upskilling or reskilling

It may be a good idea to upskill if your role still exists across your industry, but most people in your role or most job descriptions for your role incorporate advanced technical skills. For example, if you are a graphic designer, you may notice that many design jobs require user experience knowledge, so you may decide to take a UX design course.

It may be time to reskill if roles like yours are shrinking across your industry (layoffs in your role or many companies looking to hire people in your job function). For example, if you are an administrative support specialist, you may notice a downward trend in administrative openings. However, you may realize you have several transferable skills relevant to project management roles and opt to expand your skill set in that direction.

3. Refresh your resume.

Skill development can happen naturally over time. Take the industry knowledge and experience you gained in your previous role and leverage it toward your next step. In addition to adding job experience to your resume, be sure to include any newly acquired skills you've developed during your time away from work. Include these in a dedicated skills section or highlight specific programs you’ve completed in a certifications section.

Develop your career skills with our free resources

Stay connected to industry trends, career path tips, and networking opportunities by subscribing to our Career Chat newsletter on LinkedIn. Then, explore our free resources for developing new skills: 

• Watch on YouTube: 12 High-Income Skills to Boost Your Earning Potential

• Hear from a fellow learner: Meet the Engineer Strengthening His Leadership Skills | Coursera

• Take the quiz: Career Test: What Career is Right for Me Quiz?

With Coursera Plus, you can learn and earn credentials at your own pace from over 350 leading companies and universities. With a monthly or annual subscription, you’ll gain access to over 10,000 programs—just check the course page to confirm your selection is included.

Build job-ready skills with Coursera Plus

Start 7-day free trial

• 
• 
• 
• 

Start 7-day free trial