What to Do If You’re Worried About Being Laid Off

It is important to network and update your resume while you are still at your current job. Knowing people in your field, having a strong resume, and receiving recommendations from managers and co-workers will help you find a new job if you are laid off. Also, prepare for a potential layoff by building emergency savings and practicing mindful spending.

By Lora Korpar

Amid news of large-scale layoffs, many are now wondering if they are next.

The U.S. tech sector went through more than 67,000 layoffs this year as of mid-November, according to Crunchbase . Large companies like Netflix, Meta, and Twitter have contributed to mass layoffs over the past few months. Investopedia added that real estate firms, startups, and banks have also been downsizing.

You never know when your company will be the next one to initiate widespread layoffs. No job is 100% guaranteed, so it is important to prepare for the possibility of losing your position.

This involves preparing yourself for a financial hit and a return to the job search. Saving money and networking while you are still in your current job might save you a headache later.

When Should You Start Networking for a New Job?

Networking doesn’t end when you accept a job offer. Building connections while in the workplace is vital to a successful career.

“[Networking is] something you should be doing whether you have a fear of being laid off or not,” said Jamelah Henry , a recruiter, career coach, and resume writer. “Even if you're five, six, eight years into a job, you should still be networking because you'll be surprised that's how your next opportunity will probably come.”

Be active on social media to continue building your network while at work. Search job postings in your field and find the recruiter associated with them. Connecting with recruiters gives you an edge in the application process. Recruiters want to build their networks, so they often accept connection requests. Adding keywords from job descriptions to your profile will also help attract recruiters.

Post consistently to grab your network’s attention.

“With LinkedIn, you want to send connection requests to or follow people who are in the same type of industry,” Henry said. “Comment on people's posts, share your expertise… If you're connected to someone who is looking to fill a role and you pop in their newsfeed continually, then there'll be an opportunity for you to touch that person's attention without even having to do anything on your end.”?

However, be careful about what you post. A positive post can help you, but a negative or uninformed post can count against you.

“If you are not really an expert, and you comment on a post, it could turn into something that does not work in your favor and the network you've built up may be impacted by you sharing something you don't have much knowledge about,” Henry said. “So just be mindful of your comments and your posts on LinkedIn.”

How to Prepare Finances for a Layoff

Unemployment is a financial burden. Though unemployment benefits are available, they often aren’t enough to live comfortably.

Financial advisor Dan Kresh recommends everyone build an emergency fund to cover expenses for three to six months.

“Anything that has to do with money is really so much about behavior,” Kresh said. “If you talk to an employer about it, you can have some portion of the paycheck go into a separate account. Or just keep separate accounts and try to put some money in there over time. There's certainly apps out there that help you monitor your spending and see what you can save.”

Also, speak to a human resources representative to understand what would happen to your benefits following a layoff. Some medical benefit plans continue for a period after the layoff.

“HR is really going to be a huge asset to you in that sort of situation,” Kresh said. “And it's a good idea if you're not super familiar with all your benefits to talk to HR anyway. Figure out if you're fully vested in a 401(k) and those sorts of things… You want to start to get an idea because if you lose your job and its health insurance and something happens, an emergency that a couple-month fund can take care of can turn into something that could really destroy your financial life, unfortunately.”

Be mindful of your spending when anticipating a financial hit. A way to be more mindful is to make purchases in cash. You don’t see your spending amount when using credit cards the same way as when using cash. It will also give you a set spending limit.

Create a budget to know where your money is going. Set limits for non-essential items and add any money you are not spending to your savings.

“A lot of people don't know exactly where their money's going and are surprised when they start to look at the details,” Kresh said. “I did say cash could work for some people, but also… if you can pay [credit cards] off at the end of every month, that can be really helpful because they're going to track all of your spending. So anything that you can do to become more aware of where your money is going is going to help open your eyes to ways that you can spend less than might not have occurred to you.”

Choose the budgeting and saving method that works best for your situation.

“People know themselves, and whatever you can do that makes your behaviors a little bit better is going to really pay off over a long period of time,” Kresh said. “It's kind of like diet or exercise. There’s not one perfect diet. It's the type that you can stick with that will help you out over a long enough period. So you have to find little ways that will add up over time.”

What Do You Need to Prepare for a New Job Search?

A strong resume is key to a successful job search. Your resume is likely outdated if you have not searched for a job in a while.

“The first thing is to do an assessment of your skills,” Henry said. “I talk to people no matter whether they’re entry-level or senior level, and when I ask them ‘What are some recent skills that you've picked up?’ a lot of people have to sit and think about that. So I usually tell people when you are working in any job, no matter how long you are there, keep a pen and pad next to you and every time you learn a new skill, write that information down so it can be updated to your resume.”

You might have gained experience through the job without knowing it. Think about what you did while at your current company. Did you train new employees? Add “training development experience.” Did you work in a different country? Add “global experience.”

Henry said two of the most prominent keywords recruiters are interested in are “project management” and “technical skills.”?

“They are in high demand and just about every job description includes these types of skills,” Henry said. “And you have to go into detail. So if you have project management experience, you want to talk about your role, how many people were on the team, what was the outcome, what contributions you made, and what skills were included in that project.”

A resume is not the only document that can help the job search. Plan to ask for paperwork following the layoff to have documentation of what happened.

“You want to ask HR for a letter explaining that you were laid off because that could be useful for your next employer and is actual proof that it was a layoff, not something you caused,” Kresh said. “Also, it could be helpful to ask your employer for a recommendation. A lot of companies unfortunately are downsizing at the moment, and they might be happy to help you out and highlight some of the reasons they hired you in the first place, even if they can't keep you at the moment.”

Maintain your knowledge of the job market before a layoff to avoid scrambling to educate yourself later.

“You have to remain marketable and stay updated on what's going on in the market,” Henry said. “The only way you're going to be able to know that is if you are reading articles, listening to career professionals, looking at blogs, and doing that before layoffs even come because that way you're already prepared… No matter how many skills you have, no matter how long you've been in your industry, layoffs can happen to anyone.”

Top Takeaways

Steps to Take Before a Layoff

• Network with people at your job and on social media before entering the job search. Post consistently on social media to stay relevant to the people in your network.
• Prepare three to six months of emergency savings and be mindful of your spending in case of a layoff.
• Talk to HR to know how a layoff will affect your health insurance and 401(k).
• Think about the skills you have learned at your latest job and add them to your resume.
• Ask managers and co-workers for recommendations to bolster your job application documents.