Promotion year and not promoted due to COVID-19 VS. getting laid off: which one is worse?

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Laid off of course. Personally, I would prefer job security over anything.

Company generally try to retain the employees if they are valuable.. if there is any option for them. So if you are staying without promotion, means they have some value of you, which is better than getting laid off. This shows the level of skill you have wrt the market requirements.

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