What To Expect When You're Expecting Layoffs

I haven't said as much about the shaky economy as I've been feeling. Mostly because my feelings are a confusing mash-up that aren't decipherable or otherwise of use to anyone, myself included. And as a follower of the discussions happening around the web on feminism and class (see here for starters) I have been disappointed and not a little embarrassed to not have much to contribute. Worrying about your job and those of your friends and coworkers will suck up the time and energy you might normally have had for coherent thought formation. But as a member of a workforce that had historically unprecedented layoff announcements yesterday, and as someone with friends and respected peers who are now looking for work (and that number is only going up), I am feeling a little more... verbal.

Here are some thoughts on layoff prep and survival, based on what I've seen going on around me from everyone from junior staff to senior partners.

Don't believe what you're told. At least in my industry, the people in charge like to pretend there is nothing wrong until about three seconds before the hammer drops. People who trusted the assurances that everything was OK have been blindsided. People who were more skeptical are better prepared. If you are being told everyone's job is safe, use your brain and evaluate that statement for yourself. I am a suspicious little pain in the ass, but I would encourage you to seriously consider the possibility that the rosy news you are being fed is a lie. How healthy is your industry or your chief clients? How dependent on dwindling consumer spending? How skilled is your company's management team? How much have you personally added to the bottom line in the last couple of months? Chances are, the answer to at least one of those questions is not all that promising, and you should keep reading. I'll note, too, that that last question shouldn't be understood as a value judgment--if there is no work to be done, you can hardly be faulted for not being scandalously busy. But that will be part of the layoff calculation.

Evaluate your financial situation and figure out your Oh Shit plan.
- What expenses can you cut?
- If your current situation doesn't allow for many cuts, how can you change your situation, and how quickly can you change it?
- Are you eligible for unemployment? What's your estimated benefit?
- Can you defer your student loan payments and if so how long does that take to get rolling?
- Given all those things, how long could you support yourself with the savings you have? What resources could you tap apart from savings--family, friends, community, retirement plans, etc.?
- If you could survive, say, six weeks, do you think you could find a gig paying minimum replacement income in that amount of time? Both your minimum replacement income--the amount you need to cover your needs--and how fast you could realistically find a job to cover it are highly individualized assessments, but be honest about the numbers and how you feel about them.

If you feel icky about where you've come out in this evaluation, implement some of your Oh Shit plan right away and bank the savings. Resist the urge to cower under a blanket or in your dad's 1950's bomb shelter (it won't help, sorry). Have a slice of cake or a bowl of cereal, a tumbler of whiskey. Whatever's handy. You are in good company.

Keep savings liquid. If you decide you need more cash on hand, don't stick what you've got in CDs, bonds, or other vehicles that require you to relinquish access to it for a period of time. If you are contributing to a retirement account, consider pausing or scaling back your contributions and use that money instead to prop up your savings. I don't make this suggestion lightly, but I tell you candidly that in my professional field and my family situation, if I didn't have six months worth of expenses in savings already, I would take this step right now. I still think about doing it in more panicked moments.

Don't take on new expenses. This should go without saying, but evidently it doesn't. If you are worried about your job security, this isn't the time to buy a house, a car, or anything else that comes with monthly payments. Now more than ever, if you can't pay cash, don't buy it. If you can pay cash, maybe you still don't buy it just yet in favor of increasing your savings.

If you absolutely MUST take on new expenses (basic home repair, necessary car expenses or the like), consider putting it on your lowest interest rate credit card. Hopefully you've got some room on there. Basically the goal is to hang on to as much cash as you can to cover things like rent, since landlords don't take plastic.

Start gathering info on job listings you could apply for if the need arises. Update your resume and references and portfolio so that you can move quickly if you have to. Don't jump from the frying pan into the fire, but if something with a more stable employer comes up, apply.

Mine your current contacts. If you're on linkedin, get recommendations from coworkers and friendly clients who are on there, too. Swap home phone numbers or personal email addresses with anyone you'd want to be able to contact about references or networking should you both lose your jobs tomorrow. And be a pal. If you think you are vulnerable to layoffs, chances are your coworkers do, too. Broach the topic with them. Offer to be a reference for people should they need it, or to make introductions if you know others are looking to jump ship. A number of Penelope Trunk's very good suggestions for how to talk to a friend who's been laid off are probably even better if you have these conversations when the sword is dangling but before any decisions have been made.