Entry bubble Preparing for a Layoff

By: Nancy | October 30, 2008 | Category: Money

It happened again just now.

Another friend told me he's been laid off. That's the second this week. And there are so many others who are hearing rumors that their jobs could be next or who have had their work hours cut so severely that they think it's just a matter of time before they're pink slipped too.

laid off employee's box of possessionsIf your company has lost a lot of business or has been bought out recently or you're just sensing from talk around the office that your job is vulnerable, asking yourself a few questions now can help you be prepared if the worst happens later.


What does my current financial picture look like?
The rule of thumb is to have the equivalent of six months' salary in your savings account. Most people I know can't afford to do that. Take a look at what you have and think about how you can cut your monthly expenses. Can you...

  • Refinance your mortgage?
  • Cut any services or subscriptions like cable TV or DVD rentals?
  • Renegotiate or get out of contracts with the gym or the daycare center?
  • Get a deferment on your student loans?

How out of date is my resume?
Commercial job search sites like Monster.com offer up-to-date tips for crafting the right resume for the line of work you're going after. And I found a slew of resume templates that you can download if you use Microsoft Word.

Who do I know?
I got this job through networking. I gave a friend a copy of my resume and she gave it to the then-editor of the Consumer Information Catalog who passed it on to my future bosses. You never know how you're going to find your next job. So let friends and family know, join social networking sites like Facebook and LinkedIn and job hunting sites and get the word out. Also consider setting up a special job hunting email account rather than using your personal or family email and think about changing the voice mail on the phone number you'll be using on your resume; as cute as your two-year-old might sound singing on the home answering machine, a potential employer may not be so amused.

How does unemployment insurance work?
It's one of those things you don't think about 'til you need it. But if you can get familiar with it now, it'll be one less thing you'll have to figure out later.

If you are laid off, Job-hunt.org has excellent tips on what to do right away, from negotiating a severance package to continuing your health insurance coverage.

This is a rough time for so many people. What advice do you have for someone who's facing a layoff or job hunting?

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