In the past week, work have been unusually stressful. This is because 400 positions were eliminated and 100 people were laid off. I work in IT and there was an entire team and at least one person I know who was laid of in the IT department. Obviously, I’m scared. My husband works seasonally, so my income is the one that we rely on through the winter and winter is coming. Although our leaders have told us they think the layoffs are done, I’m a person who prepares and I want to make sure that if more layoffs are on the the horizon, my husband and I will be OK.
Looking back there were warning signs that layoffs were looming, despite the reassuring messages that leadership kept pushing. There was a hiring freeze, budget cuts, and canceled projects. Not to mention the ongoing restructuring that had happened over the past two years and with it leadership changes.
So obviously I’m thinking about what I need to do to prepare in case of further layoffs. First things first I spent a few hours working on our finances. Luckily, since I know that my husband is going to be off for the winter, we both worked on saving funds to get us through the winter while he’s off. We were able to save four months of expenses. My husband should also be eligible for employment insurance while he’s off. That typically adds about $500 per week, which means an additional $2000 for the month. That will allow us to stretch our savings out further.
I did some research into the severance that is being offered to employees. It looks like about 3-4 weeks of severance per year of service is being offered. That means, I would be able to get between 5.25 – 7 months of severance. So if I were let go tomorrow, I would have income until April. I should also be eligible for EI at about $500 a week, which would kick in after the severance period. In Canada, you can’t receive severance and EI at the same time. Severance is considered earnings from employment and you can’t receive employment earnings and EI earnings at the same time. If you get a lump sum severance payout, EI will only kick in when the period that the severance payment is supposed to cover has ended.
Since we’re using our savings to get through the winter, if I got the lower end of the severance package period, that would mean our funds would run out by April. At that point EI would kick in for me, and typically my husband would be going back to work. Life is unpredictable though and I need to prepare for the worst case scenario. If neither my husband nor I could get work by April, I would begin collecting EI. EI being less than half my current salary, if my husband wasn’t working, we would need to dip into our emergency fund and our long term savings in our TFSA. That plus EI would keep us afloat for another four months without either of us working.
Knowing that I have about 9 months worth of living expenses covered at our current spending rate, I would look to reduce our expenses. We could cut streaming platforms, cut a supplementary health insurance used to cover high cost prescriptions, go down to one car and save the cost of gas and insurance, and pause our monthly house cleaning service. That would cut at least $1000 from our budget.
Now that I’ve looked at my financial position, I’m checking out layoff resources to find out the first steps I would need to take after a layoff. LinkedIn Learning has a course called Managing Finances Through a Career Transition or a Layoff. It’s a 34 min course that covers some of the topics I discuss in this post, but also some things I hadn’t thought about. I recommend it to anyone who has been layed off.
I’ve been working on my resume. I’m a person who will forget the things that I have worked on and so I’ve been saving samples of my work so I can go back to for reference if I need to draw on previous knowledge. I’ve been tracking my wins, for example a project we recently completed that resulted in $500,000 in savings to the organization. Things like that that I can use in on my resume and in an interview. Also, my goal is to step up my current work on the new projects I’ve been put on. I want to show that I’m a valuable member of the team, especially to the people I’m working with whom I have never worked with before. I feel like I have to prove myself on my new projects despite having demonstrated my value on previous projects.
As an introvert, networking isn’t my favourite thing. But it might be a good idea for me to reach out to old coworkers, classmates, or managers and say something simple like, “I am thinking about my next step this year and would love to catch up” or “my role was cut, I am looking at new options.” I do have a few contacts who I can reach out to who I know hire people in my role from time to time.
I was laid off once in the past. So I know that the day itself can feel like a blur. Having a checklist of things to ask and discuss with HR or your manager helps when you’re in the midst of the confusion and stress of the moment. Some questions to ask include:
- What is my last day of employment?
- When will I get my final paycheque?
- Is there severance, and how is it paid?
- What happens to unused vacation or banked overtime?
- When do health and dental benefits end?
- Can I get a written reference or agree on reference wording?
- What is the process for returning company property?
It’s important to ask for the key details in writing by email.
Sometimes employers want to get you to sign a severance package quickly, but it’s important not to sign anything too quickly. Ask how long you have to review it, take it home, read it slowly, and highlight anything you do not understand. If something feels unfair, talk to an employment lawyer or a community legal clinic, especially if there are non-compete or non-disclosure clauses.
From experience I know that layoffs hit hard. It shakes your money, daily routine, and even your identity. I have felt the shame of telling family, “I lost my job.” Despite knowing that it’s about business and not about your worth as a person, it’s often hard to separate the two. I have a tendency to isolate too when I feel shame. Talking to people I can trust or a counsellor can help process the situation and get through it. Many provinces have free mental health lines, and some people can access support through an Employee Assistance Program, even for a short time after leaving.
It can help to practice how to talk about your layoff. Keeping a short and honest elevator speech can help get through those awkward conversations, even in interviewes with prospective employers. For example saying:
- “My role was cut during a restructure across the department.”
- “The company closed our location, so the whole team was let go.”
Then add, “Here is what I achieved there, and here is what I can bring to this role.”
It can also be helpful to make some plans for what you’ll do after a layoff. You could pick a few daily or weekly goals:
- Apply to a set number of jobs each week.
- Contact a few people in my network.
- Spend some time on skills or courses.
- Schedule breaks, exercise, or quiet time.
Conclusion
Preparing for a layoff is not about fear, it is about options. You watch for early signs, you build a money cushion, and you keep your tools and skills ready. Your mental health matters as much as your bank account. With support and an action plan, a layoff can shift from pure crisis to the start of an opportunity.
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