Wednesday, October 8, 2014

Action plan for the employees sacked from yahoo!

They came, they hired, they sacked! 
#Yahoo is #laying off hundred's of its employees at its #Banglore center in India in one of its restructuring exercises. The news is a disaster to all those who were sacked and lesson to all those who believe that 'I work in an MNC' story never ends.
Yahoo is offering them five month's pay as severance. Now a days when a lot of people live from pay check to pay check, either by choice or by forced circumstances, we can imagine, how long will this money last!
Amid all resistance and cries...the fact prevails...Within hours of the decision being announced, we have more than 400 employees rather more than 400 families worrying about their next loan EMIs, medical bills and school fees. While some of these families may sail through the situation because of family support or earning spouse, there may be a lot who are clueless till they find out another source of income. Whatever is the situation, the blow of loosing a handsome job will be hard to get over!
Though, how one can cope with this professional yet financial and personal distress will depend on his or her #Financial Landscape and emotional capacity to bear it, there are some quick action items that can help.
Current Action Items:
1. Keep Calm: 
Easier said than done... try not to let your blood pressure shoot and create health problems for you. It will only increase the amount of medical bills for you.
Remember, just couple of years back, in year 2008, a lot people in America and the other parts of the world have suffered because of recession. They were sacked, lost their investments and were rejected in personal lives. Yet they survived and finally got their lives back.
In contrast to those days, today, economic sentiments in India are positive, lot of investment has been promised and hence there can be various opportunities for you to explore. So focusing on updating your resume and linked in profile will be more useful. Also tap your network, it is the time to take some help.
2. Keep your severance packet safe: 
You may be lucky to bag an offer at a lesser known firm and may be feeling relaxed. You may be wondering about how to use your severance...Keep it safe!
Do not invest it in buying financial products and policies which are risky and illiquid. Until your future source of income is secure and regular, you may need this money so invest the money in safe instruments like Fixed Deposit.  
3. Buy Medical Insurance:
Despite several articles being written by the financial planners about why one should buy extra medical insurance, a lot of professionals in jobs rely solely on the medical insurance provided by their employers.
In current situation, where you have lost your job, you have also lost the medical insurance cover provided by your company! So buy medical insurance as early as possible if you already do not have one.
4. Decrease your EMI: 
You may not be able to change you regular expenses like grocery bills or rent or school fees but there is a possibility of bringing change in your one major expenditure ie Loan EMIs!
If you are paying loan EMI or EMIs, either on home loan or car loan or credit card, ask your bank to Increase the term and Reduce the amount of monthly EMI. You can later increase it again to pay off your loan faster. Also you may negotiate hard for getting some EMI holiday period. 
5. Involve your family:

By now your family may have already got the news, it will be helpful to share all your fear and tension with them...they can be your pillar of strength in this difficult time!
 If you have grown up children they may have heard it from outside as well, prepare them to face the questions asked by their friends. Let them know that it is a passing phase and also a challenge of working in a dynamic environment. Let them understand, how much it is important to save money and always have a back up professional plan ready! 
Hope the above action item will help some!
As a #Financial Planner, I offer to consult #Yahoo employees without any charges at this point of time!
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About the author: Shilpi Johri is a ‘Financial Planner’ and does Comprehensive Financial Planning for individuals. She also counsel individuals & families on matters of personal finance. She writes and conducts workshops on various aspects of personal finance.
To read more about her work, please visit:

Youtube: https://www.youtube.com/watch?v=DS1HsIkStR0
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Image courtesy: computing.co.uk