It was not exactly a pleasant surprise when I opened the newspaper this morning. Among the first that grabbed my attention was the news that global banking giant Citigroup is readying a round of cost cuts that could result in as many as 15,000 job losses.
Reminded me of Ford Motors’ announcement of 38,000 job cuts, nearly half of its unionized workforce. And General Motors’ news of layoff of up to 30,000 peole and closing of ten plants. And how 400 employees of Radio Shack received an email a couple years ago that just said: “You’re fired.”
There are always companies that are cutting jobs or restructuring operations. It’s being accepted as a part of conducting business in today’s economy. And getting fired in the process, unfortunately, can happen to the best of us.
So what next? Linda Tischler at fastcompany.com has some tips on how to handle unemployment, start a job search, and advice on what to do when you get laid-off.
1. There are worse things than being laid off — like staying in a bad job for “security.”
Ask yourself if the job you’re holding passes your personal desirability test. In trying times, one has a leaning to stay in a job he or she doesn’t enjoy and spend the 40-hour weeek grinding the hors and carrying a dead soul.
So be sure your next move is to a place where you’re likely to stay a while. And if it takes a little longer to find that job, so be it.
2. In fact, losing your job may be the best career move you’ll ever make.
Being out of work is no picnic, but now may be a good time to rethink what you originally planned to do with your life. “Layoffs provide a good time for reflection, a time to rethink who gets the privilege of having you work for them,” says Rayona Sharpnack, founder and president of the Institute for Women’s Leadership. “Make yourself a promise that this time, you’re going to find work that fits your terms.”
3. Don’t be surprised if you are unemployed longer than you expected at first …
Companies are taking longer to fill positions. Or they’re postponing expansion plans that would have created new jobs. Don’t rely on posting your résumé on a Web site, or tell a few friends you are in the market, and then sit back to wait for the offers to pour in. are gone. So you may want to consider how to make the most of the resources you have at hand.
4. … Even though it often pays off to move fast.
After a couple of years spent working 24-7, it’s tempting to wait out the downturn with a well-deserved travel, catching up your reading, what not. But you do so at your own risk. The veterans’ advise: Get out on the street, and do it fast. Move while there’s still some luster on your résumé.”
5. The Internet won’t necessarily solve your job-search problem.
Do your research or surf the job boards. Spending your days out of the house. attending professional meetings, joining organizations and getting involved in volunteer work are just ways to keep an ear to the ground.
6. Realize that you might have to settle for less money, a more conservative company or even moving to a different city.
An open mind is what will help you pick yourself up fastest, as well as help make the whole process as seamless as possible.
All said and done, your goal should be not just to find another job but to find work that feeds your soul — no matter who’s your company, who’s your neighbour or the state of the industry. And that IS the real truth.
Entries (RSS)
I’m always amazed when i hear about companies laying off thousands of people! It’s really something! I was talking about that with my friend just tonight, companies now seems to focus too much on “growth” than on stability and development! Say a company has a 7% profit a year, then next year 9% (the 2% difference can mean huge profits!), then the next year 12% growth.. and then if the year after they are still at 12% they layoff people and close branches and factories… it’s like, companies these days can’t stand having a 12% profit for more than 2 years in a row! They want growth, but that can happen only to reach a certain plateau… so they start layingoff people! Crazy! And that makes people want to be their own boss!.. wait in the end that’s a good thing i think!
That is a really great post! Excellent advices! Keep it up!
Good point there, Jonathan.
I did a little reading on that, and John Reh, in his article “Alternatives to Layoffs” looks at it very objectively.
1. Layoffs are done to save money. Unfortunately, they are usually a short term fix, detrimental to the company.
Sometimes things don’t work out as forecast. And when things don’t look so good, the very pressure to take action quickly ultimately works against their own best interest.
Pressing for immediate action forces executives to cut costs, as opposed to raising income. Foolishly therefore, reducing the workforce has become an automatic response for companies who need to cut costs to look good for Wall Street. It’s wrong.
2. It’s counter-productive. It should be a last resort, not a first choice for a skilled executive.
3. Job cuts don’t save money
Sometimes expenses may actually increase. The costs of layoffs generally outweigh the payroll savings to be gained from
4. Job cuts reduce performance as the talent will leave. A company may lay off employees it considers the low end producers, but in doing so it creates a climate of personnel uncertainty. That uncertainty causes others to leave. The first people to leave due to uncertainty in the company are the best people, because they can always get another job somewhere else. The climate of uncertainty that follows a layoff, therefore, always guarantees a reduction in the quality of the staff, not just the quantity.
5. Many companies fail to realize that they have a tremendous long-term capital investment in their employees.
Companies contemplating layoffs need to consider more than just the hoped for cost savings from a layoff. They need to consider, and plan for, the less obvious effects. They need to consider the reduced morale and the reduced performance and innovation it will bring. They need to consider the reduced quality of the company’s overall workforce that will result.
[...] I just read a post over at Crisis And Management about companies laying off people and how to deal with being unemployed. [...]