Head Count Reduction - or - My Company Might Fire Me: Post 1

We got news on Friday that our company is going to fire a lot of people. I've been through this twice in the past three or four years. Some definitions: "Layoff" is a union term that has specific meaning, which doesn't apply to most mass firings, including this one. I don't like the term "head count reduction" because it's too sanitary. This is what I call a "mass firing," and they aren't sanitary. People cry. Finances are thrown into turmoil. Friends are lost. Those who leave have to restart their lives.

Per a talking points release to all employees: "The reductions will be substantial."

I don't know what that means, but the last mass firing took about 10%, and that wasn't called "substantial," as far as I remember. However, I'm not going to be a victim of this event. Oh, I may well get fired, but I'm going to be prepared. I will use my blog-time to:

1.) walk people through the events of the layoff
2.) talk about how it impacts my life, financially and emotionally
3.) plan for the financial repercussions of the layoff, whatever that may hold

THINGS TO CONSIDER

1.) If you get caught in a layoff, nickles and dimes start to matter. Get the real number on what you'll get for a severence package. If I get fired in November, the company will probably give me a severance package with two months of pay.
2.) What are they going to deduct or add to the severance package? I will get unused vacation. I just signed up for a "pay gap" 0% APR loan from the company, however, to cover the October financial gap when my company switches to an every-other-week paycheck, instead of once a month (oh the timing!). They'll take that out of my severance package.
3.) Surprises? My school loan, which I'm currently floating on my Bank of America card, will not get paid by my company if I get fired.
4.) Check if you are eligible for unemployment. Even if you don't want to use it, you should still be aware of your options. I will be eligible for unemployment benefits.
5.) How long can you survive? With the severance package and the unemployment benefits, I can probably survive for 8 months without a job.

It's important for me to keep point #5 in mind. It is a huge relief to know I have an 8 month cushion if I get fired.

WHAT I'VE ALREADY DONE

1.) I reviewed my finances, and started making some adjustments to my future plans. Here are some tentative decisions:

- I am not going to pay off my high-interest (8% APR) school loan, as planned. The rate may be high, but the loan is flexible, and can be deferred if I get fired.
- I am going to pay off my car next month. I don't want to be saddled with a large car payment if I don't have a full income.
- I think I am going to pay my Bank of America credit card ASAP. I planned it out, and I can probably pay it off by December.

2.) I went to Minnesota's UI (unemployment insurance) page.

- I can still go to school and get unemployment benefits.
- My benefits would be approximately $450/week, before taxes, if I am fired, per a calculator at the Economic Policy Institute.

WHAT YOU NEED TO DO IF YOU FIND YOURSELF IN A SIMILAR SITUATION
1.) Get the resume in order. I spent a couple hours going over my resume and adding my most recent accomplishments. I go over my resume once every quarter or so, however, so it's in pretty good shape.
2.) Start networking. I have a few friends who are ultra-business people, and it wouldn't hurt to go out for a drink or send an email or two.
3.) Start clamping down on your spending. Don't wait. You may as well plan for the worst--you'll have some extra pocket change if things go your way.

WHAT IS THE SCHEDULE?

My company has been nice enough to provide us with dates as to when events will occur, approximately. When I say "nice enough," I mean that, by the way. I don't pretend to be happy about the situation, but I expect to be kept informed by my upper management, so that I can plan ahead. It is important to plan ahead in a situation like this. Many companies try to perform mass firings in a surprise maneuver to make things easier for them. I don't have to deal with that, and I am grateful for it.

This is what my company's plan looks like:

Timeline:

Sept. ----- Businesses, geographies and functions work on target planning
Oct. 3rd -- Target plan submission to EC
Oct. ------ Board discussion and approval
Nov. ------ Actions begin, upon Board approval
2008 ------ Actions completed

I assume this means the firings will occur in November.

I'm going to continue to plan, and continue to post. I made it through the last two mass firings, but I have a bad feeling about this one. I was just told I am probably going to get a promotion, so that would seem to work in my favor. However, the work I do is kind of one-off. I don't work on the core objectives of the department, and I can see management as viewing me as expendable. Not because I don't do a good job, but because my job may not be needed. That's all for now. Feel free to send me any advice or links to helpful sites.