Company Layoffs

[mondeo]

My company's gone through a voluntary separation package phase, and there are rumors of layoffs. I think the last time they laid people off was in the late 80's. I'm not too worried about myself, both because of my abilities and because we're pretty heavily into some development programs and understaffed as it is, but it would suck to see any of my friends laid off. Especially my roommate, given that we just moved into the condo he just bought.

Of course, the board just upped the dividend. But, hey.

 

[WJenness]

These are tough times indeed and anything can happen. I have been through the layoff cycle too many times when I was a director and had to let people go during tough economic phases. It's a lousy experience all around. When a layoff was done, those left behind who still have jobs would typically have a rough time. Some things to keep in mind while you still have a job:

• deal with the things you can control (guessing who and when the next layoff happens will not help you and is not in your control)
• stay away from the rumor mill, it'll make you nuts
• keep your house in order (update your resume, keep your network alive, don't live beyond your means)
• put your head down and do your best work
• support your peers, but recognize if you work with someone toxic. if you do, minimize the time with them or you'll drown in their swill
• try not to believe you are next in line for a layoff or indispensible -- neither are likely true

Sorry if any of these sound insensitive. They are not meant that way. It's just the kind of things I would tell my teams to help them stay focused and ride out the storm.

For anyone who gets caught in a layoff, you will survive, you may have a bumpy ride while you seek a new position, and in the end the change will likely do you good. I've taken this route myself. I skied last winter on the company and now work for myself again which is a great thing for me.

This all makes perfect sense, and it is exactly my intent. Survived today fine, and as far as I can tell, it only ended up being three people, two of which (at least) were known around the office as under performing people. One other person retired today (planned for a couple months) and someone else had put their notice in earlier in the week of their own volition, so it appears the 5 was really 3, and two of which were destined to go anyway... so I'm not worried as much now, but I'm still going to follow the above course of action.

Thanks for letting me vent and offering advice everybody, I appreciate it.

-w

 

[ski_resort_observer]

Just found out, one of the guys they laid off just had radiation therapy for prostate cancer.

That's pretty harsh.

I'm sure that guy could use health insurance right about now.

-w

He should have the company insurance for at least 18 months after layoff, some states it's legally mandated.

 

[playoutside]

He should have the company insurance for at least 18 months after layoff, some states it's legally mandated.

It's a federal law referred to as COBRA. It keeps you covered but the price can be high -- especially to cover a family. Under COBRA you remain part of the group plan you belonged to as an employee, but you pay your contribution and the amount that the company had paid. Additionally companies are allowed to add a small administrative fee.

 

[Terry]

I have been told that if we have layoffs, I will be the last to go. Of course I am the only employee so I don't know how much security that gives me LOL!

 

[Trekchick]

Funny, some of the factories in our area have been paring back in a huge way, while another one is expanding. The one that is expanding is bringing their production back to MI from Mexico. Reason: lack of quality control in Mexico and huge shipping costs, due to fuel surcharges.

The area where our company has soared this season (and last year as well) is agriculture. Milk prices went up, so the farmers were building, regulations said that they had to expand manure pits before adding cows to the herd, or adding on to barns. Soooooo, we spent two years building manure pits and are working on barn additions this summer.
If you want a job, come to michigan and I'll get you in on a job where you're guaranteed to have you hands on tits daily!

 

[Glenn]

It's a federal law referred to as COBRA. It keeps you covered but the price can be high -- especially to cover a family. Under COBRA you remain part of the group plan you belonged to as an employee, but you pay your contribution and the amount that the company had paid. Additionally companies are allowed to add a small administrative fee.

2% administrative fee is what companies can add. We farmed ours out to our insurance carrier: We fill out the paperwork, if the employee elects coverage, they pay the carrier directly. The rate is what the company pays for a monthly plus that 2% fee. Yes, it can get rather pricey if you have an entire family on the plan.

We're fortunate that we don't have to do layoffs that often. But when we do, we usually try to give the person a few months of benefit coverage so they can get back on their feet again. Separation of employment is a tough thing to deal with, no matter what the situation. It's always best to let folks leave with a certain amount of dignity as respect.

 

[hrstrat57]

Just found out, one of the guys they laid off just had radiation therapy for prostate cancer.
I'm sure that guy could use health insurance right about now.

He should be entitled to COBRA benefits.

Been there.

Expensive but necessary until something else comes along job wise.....

 

[andyzee]

He should be entitled to COBRA benefits.

Been there.

Expensive but necessary until something else comes along job wise.....

Expensive yes, when you get your unemployment you can choose how to spend it. Either COBRA or food and rent

 

[Paul]

I work for AT&T.

Layoffs are a normal part of our everyday existence here. Just wiped-out 60 in Meriden this week, and we're "re-structuring" and "re-organizing" which means my favorite, "Right-Sizing!"

Yep, more to come....

 

[Warp Daddy]

rightsizing , downsizing , re-structuring , re-organizing , re-engineering = corpspeak for DUMBSIZING

 

[Geoff]

Just found out, one of the guys they laid off just had radiation therapy for prostate cancer.

That's pretty harsh.

I'm sure that guy could use health insurance right about now.

-w

That also might be a major lawsuit. At most companies, employees with health issues are untouchable during a layoff.

 

[andyzee]

rightsizing , downsizing , re-structuring , re-organizing , re-engineering = corpspeak for DUMBSIZING

Corpspeak for Slave Driving.

 

[Mildcat]

"re-structuring" and "re-organizing" which means my favorite, "Right-Sizing!"

Yep, more to come....

rightsizing , downsizing , re-structuring , re-organizing , re-engineering = corpspeak for DUMBSIZING

Corpspeak for Slave Driving.

Where I work it's called "Lean Manufacturing". I think that means layoff production workers until you're down to a skeleton crew then hire a boatload of nonproduction employees to walk around all day looking for the last bit of fat that can be trimmed.

Then if all else fails build a plant in Mexico.

 

[campgottagopee]

I can say my owner is a smart cookie----2 yrs ago he had 8 dealerships and all the employees that come along with such a beast. He just sold the last one which brings us down to just 2, both in the same location making it very easy to manage. Like all all other biz there's a lot of "trimming" going on. Scary

 

[deadheadskier]

Job loss is an area I think about more and more each day myself. My job is selling products that only the top 2% of restaurants in the country could afford to buy or more properly stated have a facility and culinary talent to sell at a profit. 2%. Fine Dining restaurants. 20% of my customers are ahead of last year, 30% flat and 50% down in gross dollars. My budget is more than double what it was last year as it is only year two for the territory and I beat the first year numbers by 10%, so the budget was made with 'great faith' in me. It's a struggle as everyone is tightening up their budgets and I don't have the ability to seek out the other 98% of restaurants or hell even 20% more in the market To make matters more challenging the cost of what I'm selling has increased 20%, yet I'm being challenged to sell it at a 3% higher profit margin than year one.

The winter is my slow season business wise. I'm praying things don't get worse with job losses and restricted credit and that inflation stops such that people will spend at their current rate with my customers. In other words, I'm hoping it's low water right now, yet my feelings/study of the market says it's going to get worse before it gets better.

I'm plugging along, but I'm feverishly paying down any debt I have and saving as much as I can suc that I'm as prepared as I can possibly be in case the worst possible case scenarios play out for me. I'm glad the lift ticket portion of my season is 70% paid for already.

 

[Warp Daddy]

"I'm plugging along, but I'm feverishly paying down any debt I have and saving as much as I can " deadheadskier

That's a good strategy and one that will be fruitful even when the market bounces back -- Keep your chin up !!

 

[wa-loaf]

That also might be a major lawsuit. At most companies, employees with health issues are untouchable during a layoff.

Hope that's right, I'd be totally screwed if I lost my job right now. I only owe money on my house and a little on plastic that will be paid off in a month or two. Car is paid off and there's nothing else but the usually monthly bills. Still with all that's going on I will have to sell my house to move closer to my sister-in-law to help with the kids. I'm going to loose a huge chunk of cash on the house. I'm probably even or more likely upside down on the mortgage right now. If my wife wasn't sick we'd have stayed put and rode this out in the house.

My company has been doing well and we just bought out a competitor, but most of the deals for the next year are signed in the 4th quarter. If this quarter really bombs, I see layoffs in the new year. (saw this happen back in 2001/2) Regardless of the reassuring emails they send out about the company finances.

 

[ERJ-145CA]

My company laid off about 315 on October 1st.

 

[wa-loaf]

My company laid off about 315 on October 1st.

Yea, but you work for an airline, isn't it standard procedure to lay off a bunch of folks every quarter? ;-) :razz: