Last week, TCS announced that it will lay off up to 12,000 employees. And that’s just one company. With global uncertainty, AI taking over repetitive tasks, and companies trying to cut costs (boost profits), there’s a chance more layoffs might follow.
If you’re reading this with a knot in your stomach, wondering if your job is safe or what you’d do if you got that dreaded pink slip, you’re not alone.
Millions of Indians are asking the same questions right now.
Here’s the thing about layoffs – they’re scary, but they’re not the end of the world. With the right preparation and mindset, you can not only survive a layoff but potentially come out stronger.
So, in this post, we’ll break down what you can do to prepare for and manage a layoff, in two parts:
Part 1: What you can do right now to avoid getting laid off.
Part 2: How to handle your money and your mind if you do get laid off.
Estimated read time: 5 minutes and 23 seconds
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Buckle up. Here we go!
Part 1: How to Minimise Your Risk of Getting Laid Off
Let’s be clear. Sometimes, layoffs are out of your hands. You could be a top performer and still get the pink slip. Maybe the company is shutting down a vertical. Or maybe they’re just overstaffed.
But that said, there are still a few things you can do to increase your chances of staying safe.
Think of it like wearing a seatbelt while driving. It doesn’t guarantee you won’t have an accident, but it significantly reduces your chances of getting seriously hurt.
1. Make Yourself Visible
You could be doing excellent work, but if no one knows about it, it may not help during layoff season. So:
- Speak up in meetings.
- Share periodic updates with your manager about your progress.
- Volunteer for cross-functional projects.
- Be the go-to person when someone needs help.
- You don’t need to be loud. Just be visible and dependable.
2. Upskill Continuously
The most vulnerable employees in layoffs are often those with outdated skillsets.
So, take time to:
- Learn new tools relevant to your field (e.g. AI tools for coders, data tools for marketers).
- Get certifications that are recognised in your industry.
- Pick up adjacent skills that can make you more valuable to the team.
Today, many platforms like Coursera, Udemy, and even YouTube offer top-quality content, some of it for free.
3. Build Strong Internal Relationships
This is underrated. But people with good internal networks with peers, managers, and other departments often have better chances of survival.
Because when push comes to shove, people fight to retain those they trust and like working with.
So, build those bridges while the sun is still shining.
4. Avoid Complacency
Just because you’ve been with a company for 7 years doesn’t make you safe.
Sometimes, long-timers are at higher risk, especially if their learning has plateaued or their salary is higher than what the role demands.
Keep asking yourself:
“If I had to re-interview for my job today, would I still be selected?”
That one question can keep you sharp.
Part 2: What To Do If You Get Laid Off
Okay, let’s say the worst happens. Despite all your efforts, you got that email. Or a calendar invite. Or HR call.
You’ve been laid off.
Your heart is racing, your mind is spinning, and you’re probably feeling a mix of anger, fear, and confusion. That’s completely normal.
Take a deep breath. You’re going to be okay.
Don’t panic or blame yourself. Layoffs are about the company, not personal failure. Here’s what to do next, one step at a time.
1. Understand the Financial Picture
a) Did you receive a severance package?
A severance payout is the lump sum that companies often give when they let people go. It’s usually 3-6 months of salary (but it could be more or less).
If you’re getting a severance package, understand exactly what it includes. How much money? Health insurance continuation? In India, companies are legally required to provide certain benefits during layoffs, so know your rights. This gives you some breathing room.
If not, you need to act faster. But either way, create a monthly plan for how long your money will last.
b) Reassess your emergency fund
If you had been saving for emergencies, this is exactly what it was for.
Ideally, you should have 6–9 months of expenses in your emergency fund.
In case you don’t, don’t panic. But you will need to cut costs immediately (we’ll talk about that next).
Just avoid dipping into long-term investments (like equity mutual funds, retirement savings) unless absolutely necessary.
If you’ve been contributing to the Employees’ State Insurance (ESI) scheme, you might be eligible for unemployment benefits. It’s not much, but every rupee counts.
2. Cut Unnecessary Expenses
Yes, it’s time for a lifestyle audit.
Here’s what to do:
- Make a list of all your monthly expenses.
- Categorise them into “Must Have” (rent, groceries, EMIs) and “Can Wait” (subscriptions, eating out, travel).
- Pause or cancel anything that doesn’t help your survival or mental well-being.
Also consider:
- Downgrading OTT plans or mobile data packs.
- Using public transport instead of cabs.
- Cooking at home instead of ordering.
This is temporary. The goal is to stretch every rupee until you have income again.
3. Check for Loan or EMI Support
If you have ongoing EMIs, check:
- Does your lender offer any moratorium or restructuring?
- Can you reduce your EMI by extending the tenure temporarily?
Do not default silently. Instead, talk to your bank and request a formal change in terms. This helps protect your credit score.
Also, avoid taking personal loans or credit card loans to maintain your lifestyle. Those are traps. Instead, consider these only if it’s about absolute necessities and with a solid repayment plan.
4. Start Freelancing or Consulting (If Possible)
Depending on your skillset, you may be able to generate short-term income through freelancing.
- Are you a designer, writer, or developer? Try platforms like Upwork.
- Are you in marketing, sales, or finance? Explore LinkedIn gigs or part-time consulting.
Even ₹10,000 – ₹20,000 per month can be helpful. And sometimes, freelancing turns into a full-time opportunity.
5. Take a Break (If You Can)
If you have enough savings, consider taking a short break.
Use this time to:
- Recharge mentally.
- Spend time with family.
- Travel on a budget, if that helps your peace of mind.
- Reflect on what you really want to do next.
Because often, being laid off pushes people to discover a new career path, a startup idea, or even a better job.
But don’t just sit idle either. Set a timeline: 2–4 weeks of break, and then full focus on your next steps.
6. Upskill and Stay Relevant
Remember the part in Part 1 about upskilling?
Now, you have time.
Learn something new. Something that makes you more valuable in the job market.
Depending on your industry:
- Take a certification course.
- Build a personal project or portfolio.
- Attend networking events or meetups.
Don’t worry if you’re not productive every day. But aim for progress, not perfection.
7. Take Care of Your Mental & Physical Health
Layoffs can hit hard. They can cause:
- Anxiety
- Loss of confidence
- Insomnia or unhealthy habits
So it’s very important to focus on your mental and physical well-being.
- Get into a simple fitness routine – walk, jog, or do yoga.
- Talk to someone – a friend, family member, or therapist.
- Keep a daily routine – waking up on time, dressing up, or setting goals.
Because when your mind and body are strong, your job search becomes that much easier.
8. Start Your Job Hunt Smartly
Don’t apply randomly to 200 jobs.
Instead:
- Update your LinkedIn and resume – highlight your achievements.
- Reach out to former colleagues. Ask if they know openings.
- Join job-focused groups on different social media platforms in your domain.
- If your ex-company offers outplacement support, use it fully.
And yes, write a good layoff post on LinkedIn. Be honest, hopeful, and open to opportunities. Many people find jobs through that alone.
Final Thoughts
Layoffs are becoming more common in today’s economy, but they don’t have to destroy your financial life. The key is preparation – both in terms of skills and finances.
If you haven’t been laid off yet, start preparing now. Build that emergency fund, develop your skills, and diversify your income.
If you have been laid off, remember that this is temporary. With careful financial management and a strategic approach to your job search, you can get through this.
Most importantly, don’t let fear paralyze you. Whether you’re trying to avoid a layoff or dealing with one, take action. Small, consistent steps forward are better than standing still.
Just remember:
- You are not your job.
- You are not alone.
- You will bounce back.
Your career is a marathon, not a sprint. This might be a rough patch, but it’s not the end of the road. Keep moving forward, one step at a time.
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Still Curious?
If you are like us, who likes to analyse a little more or check out content in different formats, well you are in luck. Below you can find some suitable content we found.
NDTV Profit – Tech Layoffs Hit Home: Do Your Finances Have A Backup Plan? (YT Video)
Rezi – How to Survive a Layoff: 11 Steps to Secure a Bright Future (Blog)
Note: We don’t have any affiliation with them. We are sharing links only for educational purposes. The opinions expressed by them belong solely to them and do not reflect the views of Vrid.
