Losing Jobs

[fruitbowlk]

We found out today we will be losing our jobs. They are giving us a two year time span.

My question is what are some of the things I need to do to prepare.

I have no debt
I'm working on my EF
I rent

What am I not thinking of?

[am_vanquish]

This may sound like a mean joke, but I mean it seriously (and sincerely) ... update your resume.

You're very fortunate that they gave you such an advanced notice, so take advantage of it!!! Now is the perfect time to start networking with colleagues, friends, and family to seek out other opportunities. Unfortunately, there's MANY people in the same boat as you in this economy. One good thing that I've found with the current unemployment rates is that people have been much more understanding/helpful in the process of finding a new job.

[creditcardfree]

Reduce your expenses, so you can save more.

[disneysteve]

Originally Posted by fruitbowlk

We found out today we will be losing our jobs. They are giving us a two year time span.

I'm curious what kind of job this is where the employer can tell you now that they won't be needing you anymore 2 years from now. The first idea that comes to mind is a factory that they plan to close or something like that. Or perhaps a family owned business and the owner will be retiring and liquidating the company.

Anyway, I agree with am_vanquish. You need to start looking for work ASAP. Depending on how large your employer is, 2 years from now there will be a bunch of people suddenly looking for work in your field. Basically, you are now on a sinking ship. The sooner you get off, the better.

[jasonnoguchi]

Wow, 2 years is a long long time to prepare for. I agree with am that you should take this time to upgrade your resume.

[maat55]

Originally Posted by fruitbowlk

We found out today we will be losing our jobs. They are giving us a two year time span.

My question is what are some of the things I need to do to prepare.

I have no debt
I'm working on my EF
I rent

What am I not thinking of?

Do you need to consider taking trade courses? Are you marketable in your field?

Keep renting and saving and be prepared to take another job early.

[Snodog]

Originally Posted by disneysteve

Basically, you are now on a sinking ship. The sooner you get off, the better.

Agreed

[mainyy]

Originally Posted by creditcardfree

Reduce your expenses, so you can save more.

agree....

[cschin4]

A lot can happen in 2 yrs. People are living under threats of losing their job everyday so I would say not to get too panicky at this point. My BIL hears this weekly and there are layoffs but until he is actually laid off, they are just staying the course rather than jumping to move. So, I think you have time and breathing room.
Anyway, just continue a good financial plan. YOu can't control the circumstances but just prepare and go from there.
So, I wouldn't be so quick to jump ship at this point.

[EconoMutt]

Originally Posted by fruitbowlk

We found out today we will be losing our jobs. They are giving us a two year time span.

My question is what are some of the things I need to do to prepare.

I have no debt
I'm working on my EF
I rent

What am I not thinking of?

You're lucky they give you a warning.
We are given a 20 minute heads up to get your stuff out of your desk and get out of the door.
I'd pad your emergency fund as full as you can.

[lovcom]

Originally Posted by disneysteve

I'm curious what kind of job this is where the employer can tell you now that they won't be needing you anymore 2 years from now. The first idea that comes to mind is a factory that they plan to close or something like that. Or perhaps a family owned business and the owner will be retiring and liquidating the company.

Anyway, I agree with am_vanquish. You need to start looking for work ASAP. Depending on how large your employer is, 2 years from now there will be a bunch of people suddenly looking for work in your field. Basically, you are now on a sinking ship. The sooner you get off, the better.

Good points however if the poster changes jobs now, the new job could be cut within 2 years too....kind of like jumping out of the frying pan into the fire...a new job comes with the unknown: when will it end? The current job has the known quantity: 2 years.

Depending upon what the poster does for a job, this could be a very long time or it could be a very short time....I would suggest the OP stay put...a bird in the hand is worth two in the bush type stuff. And for the next two years I would implore the poster to retool in his/her profession by taking night classes, going to seminars, going back to school part time as required to stay leading edge and in front of he crowd that will be looking at the same time.

This is a very delicate situation because at the end of the day one can make a good argument for staying put or leaving....I tend to suggest he/she go with the bird in the hand....too many new jobs bring with them uncertainty.

The best defense is to be the best "fill in the blanks" available to the pool of employers looking for a "fill in the blanks". This means honing one's skills, retooling, or switching careers/vocation all together....this 2 year situation should provide the OP plenty of time to get his retool game on....even with two years, time is of the essence so again I would implore the OP to devise a plan, and excecute it ASAP.

One more thing: To the original poster, I would implore you to slash drastically all descritionary spending as if you have 2 months and not 2 years.....I cannot stress this more....the economy is in the toilet and the so called good news we hear in the news this week is just a bleep on the graph....sure it is welcome but is it the start of a real trend or just a bleep....the word for these times is "prudence"....error on the side of things going off the deep end...

[LuxLiving]

I'd probably stay put as well.

Along with cutting my expenses to the bone and going back to school if it's needed, I'd probably also look for part-time work to more fully pad that e-fund. Wouldn't hurt if that PT job was in the same field of employment, or in the career field I'd like to be in my future.

[disneysteve]

Originally Posted by lovcom

Good points however if the poster changes jobs now, the new job could be cut within 2 years too....kind of like jumping out of the frying pan into the fire...a new job comes with the unknown: when will it end? The current job has the known quantity: 2 years.

Depending upon what the poster does for a job, this could be a very long time or it could be a very short time....I would suggest the OP stay put...a bird in the hand is worth two in the bush type stuff.

Definitely a valid argument.

Think about this, though. Let's say the job is something that involves contract work for others. As word starts spreading that the company is closing down in as little as 2 years, new clients start drying up. They don't want to sign on with a company that is struggling. Some existing clients pull out, as well. Before you know it, that 2 year estimate becomes 18 months or less than that.

I guess it depends on the nature of the job and the available job market in that field.

[fruitbowlk]

I work in the IT field.

I just got my AAS in IT Networking.

[lovcom]

Originally Posted by disneysteve

Definitely a valid argument.

Think about this, though. Let's say the job is something that involves contract work for others. As word starts spreading that the company is closing down in as little as 2 years, new clients start drying up. They don't want to sign on with a company that is struggling. Some existing clients pull out, as well. Before you know it, that 2 year estimate becomes 18 months or less than that.

I guess it depends on the nature of the job and the available job market in that field.

Yes, and this is why this decision is a hard one. I read in the NY Times that the real unemployment rate is 17%!! Yikes! I know more then a few people that have left one job for a "more secure" job that ended a few months later. On the other hand, I know of several others that stayed and got canned. This is a tough time we live in and I fear the end is no where in site.

[thekid]

I would certainly be cutting spending as much as possible and increasing savings by as much.

I'd also start looking for another job right now. This doesn't mean that you should jump ship for a potentially more insecure position, but you definately should take advantage of the long notice to do what you need to do to secure longer term employment.

[Joan.of.the.Arch]

Recently I think NPR had a story about a study on Boeing workers in Seattle during and after a big cutback of employees. I think the study found that those who were let go early on actually ended up with less anxiety, more optimism, and better mental health than those who were able to keep their jobs. Later tonight I'll see if I can find a link for you. The situation might not compare to yours at all (or maybe it does), but it might be another angle to think about.

[disneysteve]

Originally Posted by Joan.of.the.Arch

Recently I think NPR had a story about a study on Boeing workers in Seattle during and after a big cutback of employees. I think the study found that those who were let go early on actually ended up with less anxiety, more optimism, and better mental health than those who were able to keep their jobs. Later tonight I'll see if I can find a link for you. The situation might not compare to yours at all (or maybe it does), but it might be another angle to think about.

I've read a few stories like that. The employees who remain tend to have a higher workload because they are then doing the work formerly done by more people. They tend to have "survivors' guilt" about why others are gone and not them. They tend to feel depressed and isolated when working in what used to be a bustling office and is now row after row of empty cubicles. And they tend to be anxious, worried that there will be another round of cuts that will snare them.

So anyone who thinks it is just the layoff victims who are affected is wrong.

[am_vanquish]

We've had two rounds of layoffs in the last 6 months. It's kinda ironic because right before the first layoff (back in July, when things were supposed to be improving from late '08 & early '09) I was talking to some co-workers about how great it is that our company made it through the tough-spot in the economy.

Since the layoffs, I've been paranoid that I'm next and I've stressed constantly about proving that I'm too valuable to be let go. I've come in early, stayed late, and even worked weekends. BUT it has put things in perspective for me and the DW. Our emergency fund contributions have seen a drastic acceleration in the last few months

[Joan.of.the.Arch]

Sorry I could not find a link on the NPR site.

Here is a link which talks about the study.

Survivor Stress: Layoffs have emotional and practical consequences for those who remain

I wish I could find an NPR download for you because they were discussing how this study might inform us in this more widely dire economic climate. The study was from 2003, but, uh, well this is ...2009.... Does the study still have meaning?