[citation needed]
I prefer honest and open employers who could be upfront with me when things are going bad, one way or another.
I haven't seen it myself, really, and post-layoff date your best employees may already be looking anyway (especially in a layoff as the company folds vs a "rightsizing layoff").
I see this tossed around and I question it. The people that will leave are the people with who have good intuition about what is going to go down. In other words, the people who are best able to see through corporate politics.
It's not a given that the "best performers" or "top engineers" have a good eye for "corporate political BS". It's not a given they'll see what is going down and run for the exits. Being a "top performer" in some subject matter they are paid for doesn't imply they are "top performers" in playing the game.
It is just as likely that "the dead wood" have an "A game" with corporate politics and they run for the door instead.
I know plenty of extremely good engineers who would not run for the doors in such a situation.
Most people continue doing what they were doing the day before unless pushed.
I can see mess of certain companies and their bullshit but I was wrong thinking that they would collapse as they still are limping and alive. Granted it is during good times and have to wait to see during such bad times.
The citation you're looking for is anyone who's experienced early warning of unspecified lay-offs yet to come, and what that's like.
The key is to listen to the case the CEO makes. "There are no layoffs coming, I promise" is a signal that layoffs are coming.
"There are no layoffs coming. We are growing X% YOY and hiring pace of Y% has not slowed. Yada yada yada." is a signal that it's true.
> "I'm not the messiah!"
> "Only the true messiah would deny his divinity."
> "Well what chance does that give me?! Alright, I am the messiah!"
If the CEO says layoffs are coming, people freak out. So the CEO says no layoffs are coming, so we immediately assume that layoffs are coming.