The first month of 2024 isn’t over yet, and big companies have started another round of layoffs. With Google issuing a clear first and second wave of layoff warnings, the news has once again sparked attention in the tech industry towards layoffs. Below is data from the homepage of https://layoffs.fyi (showing some data from the Bay Area in the last month or so).
We can’t influence economic cycles, the big picture, or trends – these macro terms are beyond any of us as individuals. But we are responsible for ourselves and our loved ones. Here’s a quote from the TV series “Flowers” from Uncle Ye:
Work hard at work
Rest well after work
It’s good if people speak well of you
And doesn’t matter if they speak ill
Always remind yourself
In the eyes of others
You are nothing
But in front of your family
You are everything!
Psychological Preparation
Just like conducting family earthquake drills and preparing emergency kits, we need to be psychologically and materially prepared for potential life disruptions.
Stay Positive
Discard self-doubt. When the company is laying off, whether affected or not, we should believe that being hired and gaining years of experience qualifies us to work in similar positions at other companies. Although we know this, emotions can sometimes influence our actions. Many companies provide professional mental health counseling services during layoffs. If you feel down or mentally unbalanced, seek professional communication channels promptly.
Fear stems from the unknown. Once we are prepared, we can face the “challenges” ahead with optimism and ease.
Soothe Emotions
Exercise brings positive emotions. The Bay Area has many trails. Open the “All Trail” app, and within half an hour to an hour’s drive, you can reach mountains or seas. A broad view can uplift your mood.
Put aside your work and focus on spending time with your pets. The increased demand for pets during COVID demonstrates the positive impact of pet companionship on emotions. Walking with dogs or playing with cats can provide excellent emotional feedback.
Distance from Negativity
Learn to say no to negative energy and set boundaries appropriately, distancing yourself from unhealthy environments or people. Actively seek positive energy, meditate, read books, and reduce the time spent scrolling through posts or watching videos. Control the frequency of attention paid to layoffs.
Material Preparation
Once the primary source of income at home is cut off (especially in households highly reliant on W2 income), we need to ensure that life is not significantly impacted before finding a new job. I personally don’t like accounting, but I still keep the habit of doing so to understand the structure of income and categories of expenditure.
You can now ask yourself, if in the next three months, you can’t use your W2 income, company insurance, and company benefits (fitness, lunch, etc.), what would your plan be?
Many financial advisors used to recommend keeping six months of household expenses as a reserve. Recently, I’ve seen articles suggesting nine months, reflecting the economic downturn and “inflated” time to find a new job.
Loans
Mortgage, car loans, student loans, consumer loans – missing payments can affect personal credit and significantly impact future credit consumption. Look for policies that may allow deferred payments or plans that only require paying interest, etc.
Insurance
Especially medical, vision, and dental insurance – these basic health-related services can be costly without insurance coverage.
If you’re in a dual-income household, consider joining your spouse’s company’s Family Plan.
COBRA is a government-provided insurance plan. Of course, there are many other insurance options you can purchase. It’s good to collect and compare these when you have the time, to be prepared.
Once you leave your job, you won’t be able to use the company email. Prepare ahead for service record saving and account migration to avoid confusion and unnecessary trouble during a particular period.
Expenses
We can’t cut off all daily expenses related to clothing, food, housing, and transportation. It’s generally recommended to keep liquid savings (not necessarily Saving accounts, but assets that are stable, non-depreciating, and can be quickly liquidated) to cover nine months of routine expenses.
Keep purchase vouchers for products bought using employee discounts (especially if they were only sent to the company mailbox). Many products can be registered for Warranty directly on the official website after purchase, uploading the purchase invoice, etc.
Keep the office tidy and avoid keeping high-value personal items there. Whether for changing seats or layoffs, coming and going with fewer items makes things much simpler.
Taxes
Arrange to have pay stubs / W2s sent to your home in paper form, or (if the system supports it) switch to accessing these data with a personal email account. The same applies to stock accounts. Many systems now allow you to create accounts with personal emails and link them to company accounts, so it’s wise to separate these services from your company email routinely.
Arrange the ownership of 401k / IRA and other retirement accounts ahead of time.
Computer
Avoid using company devices for personal matters and vice versa. Company computers are regularly backed up to prevent data loss, and the data is accessible to the company’s IT staff. Pay attention to protecting personal privacy.
Never use personal devices to handle company data. Basically, company devices need authentication, and some companies only allow devices with a specific company ID, so there’s no need to use your own device for work.
Exporting data from company devices is prohibited. As soon as there’s an upload, using USB storage devices will trigger an IT Alert.
Companies generally have a checklist. Returning the device and signing documents will be recorded in the system, but it’s essential to keep a backup yourself. Systems can fail, and having your backup adds an extra layer of security.
Preparing for the Way Forward
Be kind to others, don’t spread or create rumors.
Regularly Strengthen Professional Networks
All relationships require regular interaction. When we are in a favorable position, when we can lend a hand, we should strengthen our professional networks.
Take the initiative to contact former colleagues, former leaders, regardless of whether you’ve been laid off, to understand the situation in other companies or other teams in the same company. Once an opportunity arises, you’ll be informed more promptly than others.
Continuous Learning and Skill Enhancement
Continuous learning and enhancing personal value are crucial. Personal value determines one’s competitiveness in the job market. Look for opportunities to learn new knowledge at work, especially skills that can be used elsewhere, keep up with the latest industry trends, and participate in industry seminars to understand future demands and opportunities for growth.
Make good use of the educational resources provided by employers (such as Coursera, tuition assistance, etc.), set up a long-term plan, and keep executing it.
Seek Advice from Predecessors
Seek advice from individuals whose position you aspire to be in the next five or ten years. Their life experiences are often more valuable and actionable.
This ties into the concept I shared before about having a Mentor Board. No one is omnipotent, so your learning sources will change as your knowledge grows or needs change. Have a broad goal and then seek out your Role Models under that umbrella.
Points to Note
Read every document that requires a signature carefully. Raise questions immediately if you have any doubts. If there are problems, seek help from lawyers or other third parties.
If you have immigration issues or other uncontrollable factors, be proactive in checking your status. Your issues are always secondary to others.
Understand the relevant laws and regulations to protect your rights. Each state’s protection of laborers is different, especially in the high-tech industry, which is not like traditional industries.
I welcome everyone to leave comments. I will update the feedback I receive and my thoughts and understandings as they evolve.
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