So I just wrapped up a third interview for a Sales job. It went great and they even offered me a job, told me to look out for the offer letter. A week went by and today they said they're moving in a different direction with a different candidate. Is this common? I don't know how to feel about this.

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You have no power and they can drop you at anytime. Be happy you almost got it and move on.

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This is why it's recommended not to give notice at your current job until you have a signed offer and start date, any number of things can happen that derail starting a new job. It's not common, but your situation does happen unfortunately.

I spoke to a recruiter earlier this week about a role, and she started the call letting me know that they have a candidate who's already late stage in the interview process, but that my resume piqued theor interest enough that they wanted to interview me. I have no idea if this person has been extended the offer, but they are likely getting signaled that an offer is coming, and it's entirely possible that I land the role.

Sorry for your luck, be grateful for the practice and move on to the next. I've been getting rejections for going on 7 months now.

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They do this often, count it as a blessing

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I’m sorry that happened to you.

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That is rough. If they offered you the role and then changed direction a week later, I would be disappointed too. Unfortunately it does happen, but it does not make it any less frustrating.

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