In today's volatile economy, layoffs have become increasingly common. Large companies like Snapchat removing 10% of their global workforce and eBay cutting 1,000 jobs exemplifies this. The reality of mass layoffs can strike abruptly, often leaving each affected employee scrambling in uncertainty.
In this article, we’ll share actionable advice to help you prepare for potential job cuts and navigate the aftermath.
If your employer is planning a mass layoff, you’ll often have a bit of time to prepare. Employers with over 100 employees planning to lay off over 50 employees are required by the WARN Act to provide a 60-day layoff notice.
Even if your company isn’t mandated to distribute a WARN notice, there are a few signs to watch out for that could indicate your employer’s financial struggles:
Have you noticed a substantial decrease in spending on projects, events, or employee benefits?
Are there signs of a decline in sales, client acquisition, or market share?
Have you observed a change in the transparency of communication regarding the company's future plans or challenges?
By recognizing these signs early on, you can use this time effectively to prepare your financial, professional, and insurance needs.
Being financially prepared is crucial to a stress-free layoff process. Here's how you can ensure you are financially prepared:
✅ Understand your severance packages
Familiarize yourself with the terms and conditions of any severance packages offered by your employer. This includes details such as:
✅ Build an emergency fund
Establishing and maintaining an emergency fund is essential for financial resilience. Aim to set aside at least three to six months' worth of living expenses in a readily accessible savings account.
✅ Minimize credit card & high-interest debt
Evaluate your current debt situation and prioritize paying off high-interest debts, such as credit cards.
Consider creating a debt repayment plan to systematically reduce outstanding balances, focusing on the highest interest rates first. This not only relieves financial strain but also positions you in a stronger financial stance.
Keeping your professional skills and network robust ensures you're always in a position to find new opportunities quickly:
Losing your job means losing your employer-sponsored benefits, so it's crucial to take advantage of them while you can:
✅ Understand your current benefits
Before facing a layoff, thoroughly review your existing employee benefits, including health insurance, dental coverage, retirement plans, and any other perks provided by your employer.
Take note of the specific details such as:
✅ Schedule appointments before layoff
Take advantage of the healthcare benefits while they are still in effect by scheduling necessary medical appointments such as routine check-ups, dental visits, and any pending medical procedures.
Completing these appointments while still covered by employer-sponsored insurance can help you address health concerns without any additional out-of-pocket expenses.
Navigating the aftermath of a job loss can be a challenging and emotional time. Suddenly, you're faced with the need to reassess your financial stability, healthcare coverage, and future employment prospects.
Fortunately, with a structured approach and careful planning, you can manage this transition more effectively and set the foundation for your next career move.
To ensure a stress-free layoff, take note of all essential expenses so you can establish a baseline and budget during this challenging time.
Cut back on non-essential expenses and prioritize non-negotiables, such as:
After you’ve identified your essentials, it’s important to take a look at your unnecessary expenses. These might include:
If you've been laid off, you’ll often have several options when it comes to your 401k depending on your circumstances:
In the U.S., you can apply for unemployment benefits immediately. Unemployment insurance benefits can be a lifeline for those facing sudden layoffs, especially when no WARN notice was provided.
You may also qualify for other government assistance programs depending on your layoff situation. Here are several government assistance programs you can look into:
The period following a layoff is undeniably challenging, yet it also presents a unique opportunity for personal and professional growth.
As you navigate this transition, consider the following strategies to move forward:
Continue networking and reach out to former colleagues, industry contacts, and friends. Attend networking events, workshops, and webinars relevant to your field.
The connections you make during this time can lead to new opportunities and provide support and advice.
If you haven’t found the right opportunity yet, keep tweaking your profile.
Make sure your LinkedIn showcases your most recent achievements and skills. Tailor your resume for each application to highlight the most relevant experience for the position you're applying for.
View this time as a chance to reassess your career goals and aspirations. Reflect on what you truly want from your next job or career move.
This could be the perfect opportunity to pivot to a new industry, start your own business, or pursue further education to enhance your skills.
If you’re aiming to get into startup (or continue with the startup life), we have a list of startup job platforms you can go through.
