8. Surviving Layoffs

This is a special episode of Brand Gems about Surviving Layoffs.

I’ve been through layoffs on a few occasions due to various reasons and I know how hard it can be. My experience and what I learned can be helpful and so this episode is dedicated to sharing those Brand Gems that will make things a bit easier, if you are going through it, fear that you might be impacted by layoffs, or know someone who has been impacted by layoffs.

Layoffs can be a traumatic experience. If you have ever been through them, you know what I’m talking about. If you haven’t experienced them, you are likely terrified by the thought. Having a plan can provide a sense of control and calm as you go through this transitional period. Even if you are in a secure role, you, or someone you know is sure to benefit from these Brand Gems.

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Episode 8 Transcript: https://diamondbrands.media/brand-gems-episode-8-transcript/ 

Transcript

[0:00 - 0:34]

Hello, I'm Andrea Wade, the host of Brand Gems, the podcast where I highlight a person, brand or organization and discuss the key elements that contributed to their success. I'm a marketing strategist, brand architect and an MBA who likes a little fast company and Forbes mixed in with her Netflix Binges. I'm also a consultant who enjoys discovering those rare nuggets that make a business unique. Listen to Brand Gems for ideas to leverage in your personal and professional endeavors. Now let's begin the treasure hunt.

[0:35 -  1:14]

Hello, this is Andrea Wade. Thank you for tuning in to another episode of Brand Gems. This week's episode is about surviving layoffs. At the time of this recording, it seems like the economy is in a bit of a tailspin with the layouts that have been announced. Many have been impacted, many more may be impacted. And so the purpose of this episode is to provide information that can be useful to anyone if you've been impacted, if you know someone who's been impacted, if you just want to make sure you're thinking about things in a particular way in case you are ever facing this yourself.

[1:15 - 1:35]

Layoffs can be unsettling, to say the least, on multiple levels. And so I have personal experience with this and we'll get into this a little bit more in this episode. Again, the intent is just to provide some practical information that can be beneficial to people no matter what your situation is.

[1:36 - 2:12]

Back in 2000, I was working for an internet company. It was a company that was one of the pioneers in e-commerce e-Toys and we hit a point where investors just weren't going to fund us anymore. And there was a great need for additional funding to build in the functionality that we just take for granted today as far as when you're ordering online. So it was a really tough time and I know senior management was trying to figure out all the different options, but it became clear that they were going to have to make some quick changes and this resulted in the first round of layoffs.

[2:13 - 3:16]

So I wasn't caught in that first round. You might think that, okay, there's a bit of relief and there is in the short term, but then there's also anxiety because you know that if things don't change and change pretty quickly, that there's going to be, there would be more layoffs. So those of us who were there, we of course were committed to doing what we could to try and turn things around. But we also knew that there were a lot of things that we weren't aware of. I wasn't part of senior management, I was part of a project team that had specific things that we were trying to get done. So I mean, I even remember coming into work some days wondering if there would be a padlock on the door. We used to keep boxes under our desk in case we had to leave quickly and because they still needed to keep on certain staff. They had to think about management, had to think about what incentives or what they would provide for people so that they would at least stay and stay focused and not be pursuing other jobs.

[3:17 - 3:55]

The objective for the company at that point was to either secure more investments or to secure a buyer or to merge with someone. All we knew was that we needed money and we were working on projects that we thought would make us more appealing, like, say, as a partner or although as I look back on it now, realizing I realized that an acquisition was probably more realistic. But long story short, the acquisition never happened. Or I think the offer that came from senior management turned down and eventually I did face layoffs.

[3:56 - 4:12]

So that was my experience at that time and then also I've had certain other experiences over my career and that is what I will pull on as we go into the episode here and I give you my suggestions on how to survive layoffs.

[4:13 - 4:55]

To start, layoffs really shouldn't be a surprise if you're working at a company of a particular size. There's something called the Warn Act, which means that if there are a certain number of layoffs being happening, the companies of a certain size and the layoffs are greater than a particular number. I believe it's fifty at one particular site or five hundred at one site. Depending on the percentage of employees that that would impact, the number could be fifty or five hundred. Anyway, it basically says that the companies have to give at least 60 days notice before layoffs. So google the Warn Act just so you can get familiar with that.

[4:56 - 5:41]

So at a minimum, the same time companies are announcing to the media they could be letting you know, hey, in sixty days we're going to do layoffs. There are lots of ways that this can unfold, but if you're at a smaller company, well, then they don't necessarily have to follow that. Let's just take it from the point of, you know, that you are being laid off and it's your first time going through it and you're not sure what to do. I identified four major areas to focus on and I'll go through each of these. But the areas are financial, emotional, physical and professional. Financial is key. This is the business end of things. This addresses food, shelter, safety, all of the essential things.

[5:42 - 6:54]

So first rule of layoffs, be sure to read everything that you are given to sign. Make a list of your questions, get them answered. Make sure you understand everything that you're assigning. You can also try and negotiate if there are mass layoffs. There may be standard packages, but you can still try. So here are some questions to help you understand. There's usually going to be a separation agreement. If so, how many weeks of severance will you receive? Is it being paid in a lump sum or overtime? Is the layout effective immediately, if not when? You want to understand this because you want to know if you're still expected to work or if it's immediately and you'll be gone, you'll be exiting the premises. Will your severance also cover benefits? Sometimes, If you can't get more in terms of cash severance, it could be possible to extend your benefits coverage, which is extremely valuable. You want COBRA information which this is the options so that you can pay to continue your benefits coverage. Will you be able to apply for unemployment benefits? You should be able to since you're being laid off and not quitting, but this is a question that you want to ask.

[6:55 - 7:55]

You also want to look at your personal situation. Do you have any vacation? If so, this will be paid out. Two weeks of unused vacation equals two weeks of paid out salary. If you have stock options, you want to understand how those need to be handled. And you may want to consult a financial advisor to determine the most fiscally responsible actions. Do you have a 401(k)? If so, you should decide if you want to leave it at the company, if that's even an option, or roll it over if you have taken a loan out on your might be something else you have to address. Again, this should be a question that you get clarified. Are you going to have to pay that back or would it be forgiven? One thing I will say as far as your 401(k) is do not cash it out. You will be hit with taxes and a substantial early withdrawal penalty. If you are under, I believe it's 55 and it's just not worth it.

[7:56 - 8:37]

Ultimately, you want to treat your 401(k) as if the money is just untouchable. You should not consider these funds as something you can tap into for living expenses. Just do not just pretend they're not there after you figure out what you have to do with them. Really just do your best to not touch it if months down the road things get really hairy and you don't have any other options. But basically this is not an option. So do what you can to avoid being in the position of having to touch your 401(k), I did mention about if you have taken a loan out on your need to see if that has to be paid back or forgiven. And you also want to understand any potential impact on your taxes at the end of the year, depending on your loan and how that's treated.

[8:38 - 9:28]

So these questions should give you an idea of what your resources are. And you also want to take a look at your personal situation. As far as your expenses, you want to understand down to the penny almost, what you're spending each month. This is going to be helpful because you'll really be able to eyeball where you can cut, where you can make changes and the tendency will be to ignore this, to just kind of take a breath for a moment. But I highly suggest that you don't, that you just deal with it, you understand the reality because then with that information, you can make the appropriate decisions. You can put the right plan in place. Information is power and this is not a time for bearing your head in the sand.

[9:29 - 10:11]

So you've taken a look at how much severance you have, you've taken a look at your vacation, you understand all of those resources. You're now looking at your expenses. You can also look at your savings and you can craft that picture of how long you can basically cover all of your expenses without having any income. The one other thing that you can factor in right now is if you are applying for unemployment, how much will unemployment contribute to your overall monthly income? It is not going to be close to what your salary is, most likely. So there will be a shortfall, but at least it will give you some additional coverage.

[10:12 - 11:19]

So take that into account as well. And then with that full picture of what your monthly expenses look like against what your monthly income will be when you're including the severance, and then beyond that severance period, you'll see whatever that gap is and you'll be able to understand where you need to potentially make certain changes. Maybe it's a few months out and you don't need to do it for now because maybe when you look at vacation and your savings and everything, you're okay for six months. And that's great. And hopefully you are. I know we've all heard the things about make sure you have three months, six months, a year of living expenses saved. And yes, that's great advice, but it's not necessarily realistic. A lot of times people just aren't able to do that. So if that's not you, then that's great. But if you are on the shorter end of like maybe you only have three months of living expenses, then now's the time for you also to be looking at what you can cut, where you can make some adjustments so that you can try and prolong just how long your finances will last.

[11:20 - 12:40]

OK, now if you've done all of that, that was really hard. You're probably feeling a particular way. And so now we move into the next area, which is emotional. Just thinking about all of those things, answering those questions, going through that process, it might have just stressed you out, but this was essential to your survival and it's why we did it. But emotional care is really critical at this time. Find someone you can talk to, write in your journal, take walks, do meditation, go to church, listen to music, do whatever it takes for you to stay calm. It is essential during this time of transition that you keep a clear head if there are any stressful or negative people in your life. Put them on pause for now. You need positive energy. Develop a routine. Get up in the morning as if you're going to work. We'll talk about the physical next, but read, do something productive for you, starting in your day in a positive way. I cannot stress enough how important it is for you to safeguard your emotional state. This is stressful. Even if you have the financial resources. Just the whole idea that this change came and it wasn't something that you initiated, it will definitely impact you in a particular way.

[12:41 - 12:51]

So just to be aware of that and to safeguard your emotions, take whatever steps. Just self-care is very important at this time. You'll want to set goals for your day, for your week. And you'll notice that we haven't talked about professional yet. I think I mentioned that professional is the last thing that we'll get to because these other matters aren't addressed. Your efforts on the professional front just won't be that productive. So again, when thinking about your emotional wellness, you want to feel productive. So set some goals. Things that if you accomplish them each day, you feel like, OK, great, it's been a productive day. It can be something as simple as just making sure you make your bed every day or making sure that you change out of your sweatpants or you take a walk around the corner, you read ten pages in a book. Just set goals for the day that will help with your emotional state, that will help you have a routine, that will help you feel like you're just being productive and moving forward. And that is beneficial this time period.

[13:52 - 15:23]

The next area of focus is physical. Stress can manifest in our bodies in numerous ways. Physical activity is a great way to help manage stress. And so I highly encourage you to do something. I'm not saying that if you've been a couch potato, I expect you to all of a sudden now be an Olympic athlete. But I do want you to move. I want you to get up off the couch, maybe walk around the block, maybe do some jumping jacks, do some breathing exercises, stretching, just anything to show your body some attention. And if you're feeling tension in a particular area, then figure out what you can do to release that tension. Google maybe your shoulders are tense. Google exercises to help shoulder tension. Just anything you can do to help alleviate, help process that stress that might be accumulating in your body is going to make a big difference. I cannot underestimate that. Ten minutes, Fifteen minutes, Twenty minutes. Just do what you need to do. The physical, taking care of your physical self along with your emotional self is going to be extremely important. Now is the time to be hyper aware of what you're putting in your body as well. So if you did have those bad eating habits because you were working a lot. Now is the time to take a look at that.

[15:24 - 15:45]

Where can you make some changes? If you haven't been getting enough sleep? Now is the time to make sure that you are trying to get into a sleep routine. Make sure that you're drinking your water, that you're staying hydrated. You are literally in Survivor mode right now and spelling to the ground. You have to do everything that you need to to take care of your physical self.

[15:46 - 16:46]

I also want you to be hyper aware of any other substances. If you're an occasional drinker, make sure that you keep it occasional. The tendency will be to maybe want to rely on some other substances to help you get through it, just to process what has just happened. But try not to do that. If you drink, maybe don't increase how much you're drinking or smoking, or if you don't drink, don't start. Or if you don't smoke, don't start. This also could be a time for you to try and quit, just to be very aware of those things. Because again, you're in a fragile state and you want your brain power focused on the essential things. As we go into the professional and how you're actually going to find your next opportunity, you want to make sure that you're just in your best form emotionally, physically. We've taken a look at the financials and this is a key aspect that solidifies it and helps it all work together.

[16:47 - 17:44]

So we've taken a look at the financial, examined the business end of things, assessed our situation, how long we can last, where we can make certain cuts. We're putting in place a plan to safeguard our emotions, our emotional state, and to make sure that we are doing what we need to do to stay emotionally healthy. We're also looking at our physical, adding in the things that we can to make sure that we're taking care of our physical selves and helping to manage the stress. Be that through physical activity, exercise, stretching, yoga, breathing, making sure that we're paying attention to what we are putting into our body, that we're not increasing or adding any bad habits. All of these things are critical and they will put you in the best position so that you can focus on the next phase, which is professional.

[17:45 - 18:33]

And those are the brand gems for this episode that emotional and physical are really underlined for any of our success. So the next phase for us to get into is the professional. But before we get into there, I want to just call attention to the importance of safeguarding your emotional health and your physical health. This is especially important during a time of transition, a time that can be seen as stressful because it wasn't expected. But this is something for us to remember at different phases of our life. Even when things are going well, we should not take the emotional and the physical for granted, those are the key pillars to what keeps us healthy overall and keeps us functioning.

[18:34 - 19:10]

So we've done a lot in this episode. We started with just assessing our situation, the financial, and determining how we can move forward. And again, the Brand Gems that I want to leave you with, because they set that foundation, is going to be so critical as we go into the professional phase, the emotional and the physical. So if you need to, listen to it again, go back, ponder some of the questions, make sure that you have your routine in place. Because the real work can only happen when those two areas, the emotional and the physical, are solidified.

[19:11 - 19:15]

 Thank you for tuning into Brand Gyms. We'll address professional in the next episode.

[19:16 - 19:25]

You just listened to another episode of Brand Gems. Be sure to follow so you don't miss future episodes. And please share with anyone you think will find the information useful.

[19:26 - 19:27]

Until next time.

- END OF EPISODE 8: SURVIVING LAYOFFS  -