Laid off at 40? Delhi-based CEO flags dangerous trend as savings dry up and roles disappear

In a world of fast hires and even faster exits, mid-career professionals in their 40s are becoming the most vulnerable victims of sweeping layoffs.

Shantanu Deshpande, founder and CEO of Bombay Shaving Company, in a LinkedIn post, called this trend “a global phenomenon” and warned that those in their 40s are at particular risk because they are the “highest paid” during mass downsizing — yet often carry the heaviest life responsibilities.

“They have children going to college, money to send to parents, EMIs to cover — and not a lot of savings. It’s very, very worrying,” Deshpande noted, calling it alarming that people at the peak of their earning years are also the most exposed.

One user echoed this growing concern, saying, “The most vulnerable are the ones between 40 to 45, and they are the first ones to receive the axe.” The comment described a typical trajectory: stable professionals in legacy firms shift to high-paying startups, only to face sudden layoffs two or three years later — often without severance or gardening leave.

These professionals are then left scrambling in a bearish job market, often overqualified, overpaid, and overlooked.

The deeper issue lies in the so-called “40-40 problem”: candidates over 40 or with ₹40 lakh+ salary expectations are frequently ignored by recruiters unless they have rare, in-demand skills. Age discrimination, combined with outdated expertise, makes re-employment difficult. Professionals with backgrounds in legacy systems now find themselves outpaced by rapid advancements in AI, automation, and cloud computing.

The mental health cost is equally stark. A 2025 WHO survey found that 40% of those laid off suffer severe stress. Middle-aged men, in particular, are more prone to depression post-layoff.

Deshpande’s advice is direct: “Start upskilling in AI, save more, and build an entrepreneurial mindset.”