Layoffs are spreading, making it more likely you or someone you know has lost a job.
Amazon and UPS recently announced tens of thousands of job cuts, and some economists predict more on the horizon. Major companies have shifted to cutting workers after hanging onto them since the pandemic out of fears of a labor shortage. Now, with the economy slowing, costs rising and artificial intelligence (AI) allowing companies to work more efficiently, companies are trimming what they say is fat.
Losing a job can be traumatic, but it doesn’t have to ruin your finances, experts said. Staying calm and quickly taking necessary steps to protect yourself and your finances will help you survive until the next job comes along experts say.
“Suddenly losing half of our household income was…terrifying,” Chris Sherman, a product manager who got laid off, wrote in a blog. “My wife and I live in Seattle, have two kids and two mortgages, so our monthly expenses are high. Luckily we started our life together earning very little, which helped us build good financial habits early…we were able to weather the change without significant financial damage.”
Below are some tips from experts:
After you get the job, make sure to look at your 401(k) again, advisers said.
“Consider transferring your 401(k),” Eberts said. “Combining 401(k) investments into one plan makes it easier to track performance. Your new employer’s retirement plan may also allow you to meet your financial goals more quickly.”
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.