HOW TO SURVIVE A LAYOFF

Losing your job can be traumatic, but it doesn't have to wreck your finances.

- LAURA PETRECCA

Andy Wibbels's layoff story begins the same way as countless others: He was unexpectedly summoned to a brief meeting with his boss.

The Chicago-based digital marketing director had a sinking feeling about what was to come. Once he saw that a human resources representative was joining in, he knew he was about to join the ranks of the unemployed.

That same scenario has played out in phone calls, Zoom meetings and in-person conversations across the country. Although national unemployment remains at record lows, job cuts have come fast and furious as organizations prepare for a potential economic downturn. In January, overall layoffs rose to 1.7 million, the most since December 2020, according to the U.S. Department of Labor. Workers in certain sectors, such as technology, media and marketing, have been hit hardest, but industries across the board are cutting back.

A job loss can certainly be nerve-wracking. Wibbels, 48, who has since landed a new job, said he woke up every morning thinking about how to get his next position. But as he and many others have found, you can maintain control of your financial situation, even without a steady paycheck.

A STEP-BY-STEP STRATEGY

Before you do anything else, take a deep breath. "Make sure you're not making any decisions when your adrenaline's running," says Alan Silver, a senior director at benefits consultancy WTW.

There will be many money-related decisions to come in the days, weeks and months ahead. The secret to success, he says, is to "approach them from a structured, reasoned way of thinking."

Get a clear understanding of your separation terms. Your package can vary depending on many factors, such as how long you've been with your employer and the role you held. In most cases, you'll get a written notice that describes any severance you'll receive and your health- and retirement-related benefit options.