Possible Lay off

[emanon1501]

I started this job on May 6 and on May 7; this company was bought out by another larger company. During the integration process, I may be lay off between 6 months to 3 years. Of course, I can look for another job now, but I want to keep this position until that day. What should I do to be ready? I have no excuse because I am aware of it and I have at least 6 months to get ready. I already have 6 + months of EF.

My biggest concern is health insurance and cobra is just too darn expensive. Anything else I should be aware of? I have never been laid off before.

Here is a list of what I am doing now to get ready.

• Sell the camper. We will just use tents.
• Do not buy a car to replace our old aging cars.
• No new debts.

What else?

[TBH]

A 6-month EF is great, but if it were me I'd just be saving as much as I could in cash to extend the EF beyond 6 months and also to pay for COBRA. That way if you need to dip into the EF you will have longer than 6 months to find a job. And it also means that if you need to use just a few months of it, it will take less time to build back up to the 6 month point. If it were me I might also be looking for part time jobs to earn some extra income and soften the blow if you do get laid off.

[Reggie]

You said we, so if you are married can your spouse get health insurance from their employer?

There are alternatives to buying your own health insurance other than Cobra. If you are young and healthy, COBRA is actually quite expensive compared to other options. I would start researching what is available.

Save, save, save.

Good luck.

[snafu]

I suggest you find out what unemployment benefits you would be entitled to if laid off and the rules to maintain benefits. Do you see yourself re-hired in a specific timeframe? It's practical to update your resume and create a list of potential employers who would benefit from your skill sets since you could always resign to rejoin the employer you prefer. What options does your community offer in the way of part time employments or self employment opportunities which wouldn't eliminate unemployment benefits?

It's a good idea to clear as much debt as possible. I'd prepare a bare bones budget cutting any unnecessary expenses like cable, internet [available for free at every library and tons of WIFI locations], adjust cell phone plan to basic service and stock up on basic dried foods that are easily stored. Learn about public transportation and free and nearly free entertainment. It would be helpful to start cutting back on all discretionary spending to see what it feels like to live on benefits for example.

Your 6 month EF is terrific but a medical or dental issue has potential to cause big damage. What are your priorities?

[kork13]

Good to see you have a 6mo EF -- you should do everything you can to grow your EF to whatever point you can. You'll want as much of a buffer as you possibly can once the layoff takes effect.

Beyond that, you should start job-searching NOW. I know, you aren't expecting to be laid off for another 6 months... but finding a good job can often take that long, or longer. Along those lines, get your resume updated and request letters of recommendation from your current supervisors/bosses, and also ask them & your co-workers if they know anyone in your field who might be hiring -- some skillful networking at this point could bring huge dividends. Doing all of these now will make the job search a little easier.

[ua_guy]

Am I the lone dissenter that says you should start looking for a new job TODAY if you can? I don't understand needlessly putting yourself at risk if the severance is inadequate or if the possibility of a long job search lies ahead after you receive notice. I'd save like hell and start working to find a new job that gives you better job security. I might have a different perspective than some, though, I really don't think any loyalty is owed either way between the employer/employee. Do what's best for you.

[emanon1501]

I only need 6 month EF. After that, I will get SSDI as I am disabled.

I already mentioned what I am doing now. I am going to see if I can pick up some training courses to get certification to help with finding a new job.

[Gailete]

I suggest you find out what unemployment benefits you would be entitled to if laid off and the rules to maintain benefits

Very good advice! When my ex got laid off for the first time, we were young and had a baby at the time. I mentioned when was he going to sign up for unemployment and he said he wasn't. I think in his head he was equating it with welfare. But I bugged him but most likely his mother told him to go sign up. Not sure what he thought we would live on in the meantime! But if facing a layoff it is important to find out what your benefits would be so you would know how else to handle your money. The OP mentioned he had SSDI which is good, but for most facing unemployment, they need to know all the financials as far ahead of time as possible. Also find out if they are taxable in your state so you know if you need to set money aside for them..

[fruitbowlk]

Don't panic and realize no one stays out of a job forever. Budget, Continue to save if you can. Learn something new while you are out of a job, if you need to get certs any anything work on them.

[rennigade]

Dont tell me you now work for Sprint? They acquired a company around that time.

If it is Sprint...they used to love having layoffs. I dodged their bullet 3 times before I finally left on my own free will.

[dojo]

I'll chime in and say that now is a great time to prepare for a new job. Get your resume in top shape and start looking around. Worst case scenario you don't find anything, but you already have 6 months of advance when looking for a job. It's one thing to 'waste' the time when you're employed and something else to do it when you're already out of the job. Best case scenario, you find a job in the meantime and can leave from this one.

[Blessed]

Am I the lone dissenter that says you should start looking for a new job TODAY if you can? I don't understand needlessly putting yourself at risk if the severance is inadequate or if the possibility of a long job search lies ahead after you receive notice. I'd save like hell and start working to find a new job that gives you better job security. I might have a different perspective than some, though, I really don't think any loyalty is owed either way between the employer/employee. Do what's best for you.

I agree with you. I would also add that I would besides stock piling cash start stock piling things you use a lot of when you see a good price. A nicely stocked freezer, pantry and stash of personal items bought at good prices give a lot of peace of mind when you have less $ coming in.

[Gailete]

Am I the lone dissenter that says you should start looking for a new job TODAY if you can?

I don't think anyone was dissenting about looking for a new job. That is a given in my mind. Many of the bits of advice was how to work the money angle ahead of time to have the least impact if the lay off comes through before a new job does. At least that was in my mind.

Stocking the pantry and freezer are great ideas if you don't do that routinely. Max out your medical benefits while you have health insurance, assuming you do. Buy Christmas gifts early with cash, set aside necessary dues for things that you don't want to give up, and be sure your property taxes, etc. are set aside. We have to buy propane to heat with and I discovered that by buying the prepay propane we could save close to a $1K a year! But hard to set the huge amount aside yearly, but if a possible lay-off is coming, you have to look ahead to all those things that have to be paid for such life insurance premiums (the last thing you want to lose during a lay-off). It just isn't looking for a new job and hoping you get one and never having to have the preparations set aside just in case. Preparing in all respects will help a new job transition, especially if pay day is on a different schedule than before. And if the new job is something horribly hateful you can bail if needed.

[FrugalSensei]

I totally agree with UA_Guy

start looking for a new job TODAY if you can

That's unfortunate that you're losing your job (temporarily or not) but use it as a chance to see what else is out there - NOW. You may just luck out and end up in a happier situation all around.

Good luck to you!

[~bs]

obviously not an ideal situation, but at least you have a heads up of what will be coming down the road. Many others do not have an opportunity like this to prepare. I'd start battening down the hatches, polish the resume, and start looking for a new job. Finding a good job in the same industry can take months.