Fearing a layoff? Channel your inner doomsday prepper

“Season’s greetings” aren’t as cheery when it’s a season of layoffs.

November marked the eighth time this year that job cuts were up over the same period the year before, according to research from outplacement firm Challenger, Gray & Christmas. To make matters worse, hiring in November was down 35% from 2024, marking the lowest year-to-date total since 2010.

News about the current labor market can be unnerving—even more so when layoffs are hitting your company. Being prepared can help make it less so. And one group of people knows more about that than most.

A page out of the prepper book

The word prepper may bring to mind images of shows like Doomsday Preppers, in which people stockpile food, water, weapons, and supplies in anticipation of apocalyptic events. However, most preppers are simply people who want to have some basic essentials or plan in place just in case.

In fact, the last Federal Emergency Management Agency (FEMA) National Preparedness Report found that more than half of U.S. adults (55%) had taken 3 or more of the 12 preparedness steps, like making a plan, gathering supplies, and securing documents.

It’s not that different from preparing for a layoff, says organizational psychologist Melissa Doman.

“Going through an unexpected layoff is a form of a temporary ‘doomsday’ for some people. They didn’t expect it, they can’t control it, and they don’t know how long it’s going to last,” she says.

If you’re worried about an impending layoff, try preparing like a prepper.

Know what you have

When layoff rumors start circulating, “if you start making plans as soon as the whispers begin, or before if possible, you’ll be in a much better position,” says Michael McAuliffe, president and CEO of Family Credit Management, a nonprofit credit counseling agency.

Personal finance expert LaChelle Johnson agrees, advising, “Figure out exactly what you have in terms of cash on hand, liquid assets, and even funds you may have access to in an emergency that you can withdraw from, like retirement accounts or investment accounts.”

Maximize income and benefits

In 2018, Michelle Arellano Martin had what she thought was her dream job. Then, she got a surprise. “I had just completed a huge project—garnered some incredible awards for my work—and then my position was eliminated,” she says.

If she had it to do over again, she says she would have applied for unemployment benefits immediately, because the first payment took several weeks to arrive. She also advises negotiating for the best severance package you can. After her second layoff, she was able to negotiate an additional three months of severance pay. This, in part, helped her launch her business, sustainable travel site Travara.

Talent strategist Brittany Dolin, CEO of the Pocketbook Agency recruitment firm, advises reviewing an expected severance package and how benefits like health insurance last after a layoff. You may also look for benefits that can give you immediate value, such as flexible spending account balances available to you.

Johnson also suggests looking for items that you might be able to sell if necessary—everything from future concert tickets to that bread maker you always wanted to use but never opened. She also advises thinking about side hustles (but be sure you understand their impact on unemployment benefits).

Slash spending

When Johnson was laid off years ago, she and her husband had car loans, private school bills, credit card balances, and a big mortgage. The couple decided to make serious changes, like moving in with his parents for a year, to protect what they had and get out of debt. “I just felt like we were maxed out from wall to wall,” she recalls.

Johnson advises taking a close look at spending and eliminating what you don’t need: Cut subscriptions. Pause gym memberships. Plan meals, and eat at home. Look for cheaper housing options. Follow frugal living communities on Reddit or other social media for more ideas on cutting expenses. You may pick up some good habits and find room in your budget to beef up your emergency fund over time, she says.

Get your support team lined up

Three of the 12 disaster preparation actions FEMA recommends involve identifying people you need for help and communication during emergencies. Similarly, Doman says you need to identify your support team if you suspect you’re facing something as stressful as a layoff.

Don’t just default to your best friend or a family member. Instead, she says, think about the people who are going to let you feel your emotions and, when you’re ready, devise an action plan if the layoff comes to pass.

“You don’t want someone who’s just going to brush off your emotions or give you a lot of toxic positivity,” she says. In fact, she adds, “You may need more than one person.”

Reach out to these trusted individuals and let them know what’s going on so they can support you—and perhaps even help you network to find a new job.

Keep a schedule

If the layoff does come to pass, you may need to wallow a bit.

Doman says it’s okay to take a “duvet day” to lie in bed and watch television if you need it. But don’t do that for too long, she adds. “Keep structure in your day—get up at a set time, work on some tasks to find a new job, get some fresh air, talk to a friend,” she says.

Dolin agrees. Fear can be paralyzing, and if a layoff is pending or just happened, it’s time to buckle down and do your best “to stay employable in an unpredictable market,” she says. “Preparation does not equal panic.”

source https://www.fastcompany.com/91460977/fearing-a-layoff-channel-your-inner-doomsday-prepper