Welcome to the age of office paranoia, when layoffs, AI, and job insecurity are terrorizing workers

A wave of new anxieties is sweeping through white-collar workplaces, driven by the looming threat of AI job displacement, intensifying return-to-office mandates, and a resurgence of demanding corporate cultures that blur the line between work and personal life. The shrinking of middle management—part of what’s been dubbed the "Great Flattening"—has added to growing unease, as some employees fear they may be the next to go.

“Workers are feeling disempowered,” said Michele Williams, professor of management and entrepreneurship at the University of Iowa. She noted this sense of uncertainty was last prominent during the 2008 recession and has resurfaced in today’s workplace climate. “If the boss walks by and doesn’t say ‘hi,’ is that a sign they’re about to fire me—or were they just distracted?” Williams asked. “People are looking for these social cues and reading too much into them because of that insecurity.”

This phenomenon is known as "paranoid attribution"—where ordinary office behavior is interpreted as a sign of looming trouble. Employees may wonder if a downgrade in snacks signals financial instability, if a warmer office means budget cuts on air conditioning, or whether an influx of interns is a hopeful sign or a threat to full-time hiring.

These fears often take a psychological toll, even if not always grounded in reality. Persistent worry can hinder productivity and morale. Despite headlines about white-collar layoffs, overall layoff rates remain low and primarily affect large, high-profile firms. Unemployment is still relatively modest, but the white-collar job market has tightened noticeably—openings are scarcer, and promotions are harder to come by.

For some, the growing uncertainty has been enough to prompt a career shift. Smith, once part of the corporate workforce, chose to leave the environment entirely. Now self-employed as a content creator and reseller, she said, “I feel so much better—because when you’re working for yourself, at least you know you’re not going to get laid off.”

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