The best way to mitigate the impact of a layoff is to be ready for it. Some people may have a second revenue stream to fall back on, but many do not. Here is what you should do when you start feeling like layoffs may be on the horizon.
Reduce your expenses. Your first step should be to cut every nonessential expense. That means everything except rent or mortgage, food, minimum debt payments and basic health needs such as medication. You should also consider dropping Netflix or cable subscriptions and switching to a cheaper phone and internet plan.
Save. All the money you’re not spending on necessities should go into a savings account. It may take several months before you find another job, so plan to have enough money to survive for at least three months.
Use your connections. Your personal and professional networks may turn out to be invaluable resources when it comes to securing a new job. Make a habit of updating your resume regularly and attending networking events. Having a plan B could save you a lot of time and stress down the road.