Methodology

How PinkSlip calculates the layoff risk score — a transparent, weighted heuristic using public data.

Scoring Formula

Each company receives a risk score from 0 to 100, where 0 is safest and 100 is highest risk. The score is a weighted sum of five signal categories, adjusted by job family and region modifiers.

Risk Score = Σ (signal_category_weight × normalized_category_score) + job_modifier + region_modifier

LOW

0 – 25

MODERATE

26 – 50

HIGH

51 – 75

CRITICAL

76 – 100

Signal Categories

Recent Layoff Activity

30%

Tracks confirmed layoff events, WARN Act filings, and headcount reductions reported in the last 90 days. This is the strongest predictor — companies that have recently laid off are statistically more likely to do so again.

Sources: Layoffs.fyi • WARN Act filings (CA, NY, TX, WA)

Financial Health

25%

Monitors stock price trajectory (30-day trend), quarterly earnings surprises, and year-over-year revenue growth. Financial pressure is a leading indicator of workforce reductions.

Sources: Yahoo Finance • SEC EDGAR (10-Q/10-K)

Workforce Signals

15%

Tracks whether the company is actively hiring (open roles count) and whether overall headcount is growing, stable, or shrinking. A hiring freeze often precedes layoffs.

Sources: LinkedIn (public company pages) • H1B/PERM filings (DOL)

Sentiment & News

15%

Aggregates layoff-related headlines from major tech news outlets, anonymous employee discussions, search interest trends, and employer review ratings.

Sources: TechCrunch, The Verge, Reuters, CNBC, Ars Technica • Moneycontrol, Economic Times, Times of India, Livemint • Blind (anonymous posts) • Glassdoor (ratings & reviews) • Google Trends

Historical Pattern

15%

Analyzes whether the company has a pattern of repeat layoffs and whether the current season (Q1/Q4 historically higher) increases risk.

Sources: Internal historical analysis

Modifiers

Job Family

-8 to +15 points

Different roles face different levels of layoff risk. Recruiting and HR teams are typically cut first (up to +15 points). Core engineering roles are usually retained longest (up to -8 points).

Region

0 to +6 points

Geographic location affects timing and likelihood. US headquarters locations tend to be baseline. International offices (India, LATAM) may see delayed but broader cuts.

Confidence Levels

Each score includes a confidence indicator based on how many data signals are available:

HIGH

8+ signals

MEDIUM

4 – 7 signals

LOW

< 4 signals

⚠️ Disclaimer

PinkSlip provides a directional risk index based on publicly available data. It is not a prediction — layoff decisions are driven by internal factors that no external model can fully capture. Do not make career decisions based solely on this score. Think of it as a weather forecast, not a guarantee.