Explore the real reason for ageism on job seekers over 50 and uncover the truth about hiring biases in corporate America.

If you’re over 50 and struggling to find a job after being laid off, let me be clear: the problem isn’t you. 

It’s not because you suddenly lost your skills, forgot how to do your job, or can’t keep up with the latest trends. It’s not about being “overqualified” or not the “right cultural fit.” Those are simply “polite” ways of saying, “We don’t want to pay you what you deserve.”

The truth is, corporate America runs on cost-cutting*, and older workers (read: workers with a lot of experience) –who have earned higher salaries, better benefits, and long-term job security –are seen as financial liabilities, not valuable assets. Companies will bend over backward to justify letting go of experienced employees, blaming outdated skills or performance concerns. But the data proves otherwise. 

And here’s the most infuriating part: it’s all wrapped in a thin layer of excuses to make it seem like a legitimate business decision. They’ll tell you it’s about “staying competitive,” “bringing in fresh talent,” or “aligning with strategic goals.” But let’s call it what it really is: an excuse to save money at the expense of those who have spent decades proving their worth.

So if you’ve been laid off and can’t seem to land another job despite decades of experience, don’t take it personally. I know, to you, it is extremely personal. But from a company’s perspective, it’s not. It’s all about the numbers. Doing business.The system is working exactly as designed. 

So, the real question is: What are you going to do about it? Keep playing by their rules, or start making your own? Before you decide, let’s look closer at how targeting older workers is part of “doing business as usual.”

The proof: Ageism exists to save money

Companies target older employees in layoffs not because of performance, but because they earn more. IBM provides a prime example. Between 2013 and 2018, the company laid off tens of thousands of U.S. workers, 60% of whom were over 40. Internal documents revealed top-down orders to replace older workers with “early professional” (entry-level) hires, proving that cost-cutting, not skills, was the real motive.

Hewlett-Packard faced similar allegations. A class-action lawsuit claimed HP unfairly targeted older employees for layoffs as early as 2012 to trim its payroll. The lawsuit highlighted statements from HP’s leadership expressing a desire to reshape the company’s workforce to include more young employees. For instance, then-CEO Meg Whitman publicly discussed the need to “recalibrate and reshape” HP’s labor pyramid to incorporate a significant number of early-career individuals.

 In 2023, HP and its spinoff HPE settled for $18 million, without admitting guilt. But their actions are part of a broader pattern: when companies “restructure,” it’s often older, higher-paid workers who get the boot.

Recessions only make this worse. During downturns, employers use layoffs to swap out experienced, fairly compensated workers for younger, cheaper replacements. Research shows that age discrimination spikes in times of high unemployment, with older workers being “the first fired and last rehired.” This was particularly evident during the COVID-19 slump, and continues on to today.

Hiring bias: Employers want cheap, not skilled

When older workers apply for jobs, they often hear they are “overqualified.” That’s merely corporate-speak for “too expensive.” A 2024 survey found that 21% of workers over 40 were told they were overqualified, while 52% saw employers favor younger, cheaper hires. Companies are actively skewing job postings toward younger candidates by using terms like “recent graduate” or “junior,” effectively filtering out older applicants.

Some companies even take it a step further, using digital job ads that will most likely appear to younger users. (An illegal, but hard-to-prove practice.) 

In 2019, a comprehensive field experiment conducted by Magnus Carlsson and Stefan Eriksson investigated age discrimination in hiring practices. The study sent fictitious job applications to real vacancies, differing only in the applicant’s age, to measure the impact on callback rates. The findings revealed that older applicants received significantly fewer interview invitations compared to their younger counterparts, highlighting a clear bias against older workers. 

Promotions denied to keep wages down

Age bias doesn’t just affect hiring and layoffs; it significantly impacts promotions as well. A survey by Robert Walters revealed that two-thirds of individuals over 50 have been overlooked for promotions, often in favor of younger, far less experienced colleagues. 

The underlying reason often boils down to cost. Promoting an older worker typically entails a salary increase, which some companies aim to avoid. By keeping seasoned employees in their current roles, organizations can maintain lower payroll expenses. This strategy shows a troubling trend where financial considerations override the value of experience and expertise.

Even performance reviews are weaponized against older employees. Companies frequently rate older workers lower or deny them access to key projects, ensuring they won’t qualify for raises or promotions! This isn’t about meritocracy, it’s about controlling costs.

Older workers excel, companies just don’t want to pay them

The most common (and insulting) excuse for pushing out older workers is that they’re “less skilled,” “resistant to change,” or “less productive.” These are blatant lies. Research clearly shows that job performance does not decline with age. 

In fact, a 2023 analysis reads, “in short, older workers appear to be as productive as younger workers, but they cost more.  However…a concern with all these estimates is that a declining firm may have a large share of older workers because younger workers do not wish to enter it.  If so, the relationship between the share of older workers and firm performance would be negative, but this relationship would not mean that an increasingly older workforce was causing less profitability.” 

In other words, young (inexperienced) workers shy away from working with older (experienced, costlier) workers, and this costs the firm money because they can’t attract cheaper labor.

IBM’s layoffs further expose the hypocrisy. Many older employees who were told their skills were obsolete were actually rehired as contract workers –for the same roles(!) –but at lower pay and with fewer benefits. If their skills were truly outdated, why bring them back?

Older workers are not only highly capable, but also more loyal. They have lower turnover, saving companies money on hiring and training. Further, a new study showed that older workers even call in sick less than younger workers do! Yet businesses continue to push them out. Not because they’re bad workers, not because they lack dedication, but because they’re paid fairly for their contributions.

The mental toll: Believing the lies erodes self-worth

As an older worker, losing a job isn’t just about the paycheck. It hits much deeper. When experienced professionals are suddenly told they’re being let go due to vague reasons like “performance issues” or “not being the right cultural fit,” it’s more than just frustrating, it’s emotionally damaging.

Hearing those words over and over can start to mess with your confidence. You begin to question yourself: Was I really not good enough? Did I suddenly forget how to do my job? The truth is, these justifications are just excuses to push out higher-paid employees. But when you start believing them, the stress, anxiety, and self-doubt can pile up fast.

This kind of treatment takes a real toll on mental health, leading to depression, anxiety, and a loss of identity. After all, if you’ve spent decades building a career, only to be told you’re no longer valuable, it can feel like the rug has been pulled out from under you. And that’s the real harm; companies aren’t just taking away jobs, they’re eroding the confidence and sense of worth that took years to build.

So, if you’ve been laid off and are struggling emotionally, it’s not just in your head. The research backs it up: job loss hits hard, and the system isn’t always built to support you. Perhaps knowing this can help you break the cycle and focus on moving forward in a way that works for you.

Also, the way companies handle layoffs can deeply affect employees’ mental well-being. Increasingly, firms are notifying staff of terminations through highly impersonal methods like texts or emails, leaving individuals feeling undervalued and betrayed. 

For instance, a seasoned General Motors engineer with over two decades of service received a pre-dawn text message instructing him to check his email, where he found his termination notice. 

Sadly, the erosion of self-worth resulting from these practices hampers the ability of older workers to rebound. Doubting their competencies, they may become hesitant to pursue new opportunities, leading to prolonged unemployment and further psychological decline.

Going forward: Stop fighting a rigged system. Build your own!

The pattern is clear: companies lay off experienced workers to cut payroll, avoid hiring them to keep costs low, and deny them promotions to suppress salaries. When they claim these decisions are about performance, it’s a smokescreen. The real motive is greed. It’s not you!

If you’re over 50 and struggling to find work, you must keep reminding yourself: it’s not because you lack ability. It’s not because you can’t adapt. It’s not even actually about your age! It’s because companies see you as a cost to cut, not an asset to retain. And that’s the ugly truth about corporate ageism.

The good news is, you don’t have to keep fighting your way back into a broken system. A system that views you as nothing more than an expense isn’t one that deserves your time, effort, or dignity.

Instead of letting this system chip away at your self-confidence, take your skills, experience, and expertise and build something for yourself. Solopreneurism: starting your own business, freelancing, consulting, or monetizing your knowledge, offers a way out of this cycle of devaluation. It puts you in control, allowing you to create a career that rewards you fairly, gives you freedom, and eliminates the constant fear of being pushed out for someone younger and cheaper.

Recognizing the financial bias in corporate ageism is the first step. The second step? Walking away from it and forging a path where your experience is an asset, not a liability. The workplace isn’t changing anytime soon, but you don’t have to keep playing by its rules.

*” Zero-Based Budgeting (ZBB), “quiet cutting,” and layoffs of downsizing.

Are you ready to re-embrace your identity as a highly valuable expert in your field? Let’s talk about how you can turn things around and create your own career. Schedule a free solopreneur mindset session today!