Your 40s are supposed to be the career sweet spot: you’re experienced, trusted, earning well, and leading teams. For business owners, these employees are typically seen as the “steady hands” — reliable, responsible, and deeply knowledgeable.

But in today’s fast-moving and often brutal job market, a surprising shift is taking place: employees in their 40s are becoming the first to be let go.

This wake-up call comes from an article by The Economic Times. Shantanu Deshpande, founder and CEO of Bombay Shaving Company, recently took to social media to share a hard truth: Professionals in their 40s are now the No. 1 layoff target during restructuring.

This warning holds big implications not just for employees, but for business leaders, too.

The Bigger Picture: What the Data Tells Us

• 1.5 million workers are laid off every month in the U.S., many of them in mid-career roles.
• Older workers often face longer unemployment periods and take significant pay cuts to re-enter. 
• Over half of workers over 50 were forced into early retirement — and most couldn’t bounce back to a similar income level.

Why Professionals in Their 40s Are Most at Risk

Even high-performing employees in their 40s are finding themselves on layoff lists, often unexpectedly. Here’s why:

• They’re more expensive. Experience comes with higher compensation, making this group a natural target during cost cuts.
  
• They’re seen as less agile. Some companies believe mid-career workers may resist adopting new technologies or methods.
  
• They’re “in the middle.” Not junior enough to be protected by low costs, and not senior enough to sit in the C-suite — putting them in the scope during organizational reshuffles.
  

The result? Many mid-career professionals are facing career disruptions right when their financial obligations — mortgages, education fees, aging parents — are at their highest.

The Cost of Cutting Experience — For Businesses

While layoffs may offer quick financial relief, they come at a long-term cost:

• Loss of knowledge and stability.
  Employees in their 40s often carry institutional memory, manage critical operations, and mentor junior staff.
  
• Weakened leadership pipeline.
  These mid-level professionals are tomorrow’s senior leaders. Cutting them now weakens your future.
  
• Low morale and cultural setbacks.
  Frequent layoffs lead to anxiety and disengagement among remaining teams.
  

So, how do companies reduce costs without losing their core talent? One answer lies in a smarter, more balanced approach to workforce design.

What’s a smart strategy?

Outsourcing can be a secure and strategic solution to staying ahead – it’s about restructuring wisely. By outsourcing non-core functions, businesses can optimize operational costs while retaining their in-house leadership and experience where it matters most.

For Employers:

Outsourcing allows companies to stay lean and competitive without compromising long-term capability.

It offers a secure and scalable model, helping organizations reduce overhead while still accessing world-class talent.

When used strategically, outsourcing gives your internal teams room to focus on innovation, leadership, and growth — rather than the daily time-consuming execution.

For Employees:

Outsourcing can open new career paths. Mid-career professionals who are laid off are increasingly turning to freelance, contract, or consulting work with companies around the world.

It provides a stable alternative — allowing skilled individuals to offer their expertise remotely—  while being compliant, often on more flexible and diversified terms.

Some even transition to the other side, becoming part of global outsourcing teams — bringing their leadership and domain knowledge to businesses in need.

3 Moves to Secure Your Future

Whether you’re an employee or business owner, these three tips can help you stay resilient and ahead of the curve, according to Deshpande:

1. Upskill — Especially in AI and Emerging Tech

• For employees: Get comfortable with tools like ChatGPT, automation software, and data platforms. Even basic familiarity makes you far more valuable.
  
• For employers: Offer upskilling programs to mid-career staff instead of replacing them. Upskilled employees often outperform new hires in both efficiency and context.
  

2. Build a Financial Safety Net

• For employees: Aim to build 6 – 12 months of savings. Diversify your income where possible.
  
• For employers: Promote financial wellness among your teams. Offering tools and education in this area can boost retention and engagement.
  

3. Adopt an Entrepreneurial Mindset

• For employees: Ask yourself, “How can I solve problems beyond my job description?” or “What unique value do I bring?” That mindset makes you harder to replace.
  
• For employers: Cultivate intrapreneurship. Encourage team members to pitch new ideas and run small experiments, this drives innovation from within.

Prepare, Pivot, and Partner Smarter

If you’re in your 40s, the key message is this: You still have time to adapt and get ahead. But the time to act is now.

If you’re running a business, remember: cutting talent may save costs today, but it could cost you dearly tomorrow.

Outsourcing, when used thoughtfully, allows companies to stay financially agile while keeping their core strong. It provides a secure, long-term solution that supports both business growth and career reinvention.

If you want to know more about outsourcing, you can read more at filtaglobal.com.