Every day, around 3,000 workers face the unfortunate reality of job loss as the wave of layoffs that began in late 2022 persists. This situation has created a climate of fear and stress among employed individuals, who worry that they might be next in line to lose their job.
But instead of letting anxiety take over, it’s important to be prepared and know how to handle a layoff.
Before we dive into strategies to manage layoffs, let’s first define what a layoff truly means.
What is a Layoff?
A layoff is when an employer terminates an employee’s employment with the company, either temporarily or permanently. It can happen for various reasons unrelated to the employee’s performance. However, it’s often a result of company-specific factors.
Layoffs can be temporary as well as permanent. In a temporary layoff, the company compensates its employees until the tenure restarts. In permanent layoffs, the employee faces a permanent termination from the company.
A recent example of a layoff is Twitter’s decision to lay off 3700 employees, or 50% of its workforce after Elon Musk took over the platform.
Best 4 ways to deal with a layoff
#1 Sit back, relax and rejuvenate
It can be challenging if you’ve been laid off, especially those who love their job and the industry they worked in.
Acknowledge your feelings and give yourself time to process them. Writing in a journal, practicing mindfulness through meditation, talking to trusted loved ones, and seeking support from a mental health professional can help you navigate this difficult time.
Remember, it’s essential to take care of yourself emotionally and physically during this period.
#2 Take a good look at your investment payments
Once you are calm and collected, it’s time to look at the investments or contributions to a retirement plan that you may be accustomed to. Then, calculate those expenses and see if you can continue doing so.
Investment options often have flexible payment choices, but retirement plans typically have stricter terms. So reach out to the relevant organisations and consider decreasing your contributions temporarily.
Plus, avoid withdrawing funds from your retirement plan prematurely, as it can negatively impact your financial stability.
#3 Reassess your skills
Once you’re calm and collected, reflecting on your skills and knowledge is essential. Make a list of your strengths and areas of expertise, and consider what steps you want to take next.
If you need to acquire new skills or sharpen existing ones, consider enrolling in a relevant course or training program. Investing in your personal and professional development can increase your chances of finding a job that aligns with your goals and aspirations.
During this time, feel free to take the initiative to improve your skills and expand your knowledge base. It helps you to become a competitive candidate and even increases your chances of getting a job quickly.
#4 Create a budget and stick to it
After a layoff, it’s crucial to take stock of your expenses and create a budget to ensure you don’t overspend.
This means cancelling or suspending gym memberships and subscription services and paring down your cable package. You can explore many other ways to live frugally during your term of unemployment.
Remember that these budget cuts are only temporary. The aim is to free up space in your budget for essential expenses like housing, food, and healthcare.
In the end
A bend in the road is not the end of the road, unless you fail to make the turn. So, if you are worried about layoffs, remember to avoid stress and keep yourself well-prepared. If you have your savings locked in investments, a quick and easy way to arrange funds is to opt for a personal loan. Tata Capital offers personal loans at affordable interest rates with minimal documentation. Plus, our loans are multi-purpose, so you can utilise the money the way you want. Visit our website to learn more about our offerings and apply online.