Company Shutting Down? Deal With A Sudden Layoff With These Easy Steps

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The economy isn’t what it used to. Many companies have started downsizing their employee number for effective cost-cutting. Some companies might close down a plant or in need of sponsorship which leads to mass layoffs.

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Layoffs are the most dreaded part of being an employee. It can be traumatizing to be out of a job when you did nothing wrong.

While the adversity of a job loss, especially if it’s the main breadwinner can be quite challenging, some practical and well-planned measures can help you get back on track.

Here’s what you can do if such a scenario happens to you.

Build a corpus

While you are still working, try keeping a contingency fund for an emergency situation. The blow of a layoff can be minimized if you have some cash at hand.  Make sure you have a contingency corpus equal to six months’ expenses at your disposal.

Independent health insurance

Most salaried workers don’t go for a separate health insurance plan since companies today offer one at the time of joining. But in an instance of a layoff, those health insurance becomes nullified and you are without a health insurance. It’s advisable to opt for a mediclaim that fits your budget.

Sell assets, take loan against investments

If your saving is inefficient, sell some of your assets or redeem investments like mutual fund units. You could also take a loan against assets such as fixed deposit, PPF, insurance, gold or property.

Reschedule loan EMIs, stop investments

EMI’s and loans become more difficult to pay in the case of a company layoff. Since the insurance premium cannot be avoided for fear of the policy lapsing, find out from the insurer if you can alter the periodicity of payment or reduce the cover amount temporarily.

Take up a part-time job

It is easy to succumb to the first job that comes your way after a layoff. But this can be detrimental to your career graph as you might be overqualified for the job you have taken. After a while, you might feel stuck.  It is better to take up a part-time job.

Upgrade skills

Another important thing you can do to enhance your employability is to upgrade your skills by taking up a short professional course. It will not only allow you an additional leverage but also widen the spectrum of jobs you can apply for.

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 Don’t stress out

It is easy to lose hope when a scenario like this happens to you. The financial obligation that you already have and the uncertainty of the future can push you towards depression. Try keeping a positive outlook and focus on investing in skill improvement. Keep looking for a new job.

Don’t use your retirement corpus

You might have started a fund for your retirement. But during a layoff, it is easy to break into that to sustain yourself. Avoid doing that. Your retirement plans are as important as your present. Dipping into savings marked for retirement can break the plan you had in mind.

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