Preparing for a Layoff

In the recent past, my company announced that it is being sold.  It is a large public company, so it made pretty big news in the industry and locally, as it is the biggest private employer in the state.  For the sake of privacy, I am not going to disclose the name of the company I work at as long as I am an employee.  (I’ll just say that I work in one of the buildings in this picture)

At the time the “merger” was announced, we were told that the deal is expected to close in the first half of 2010.  Based on that knowledge, I figure that I have a year or so left at this company.

I recently asked the readers whether they would focus on saving or loan payments in the short term.  One astute commenter, Suba from Wealth Informatics, asked if I expected my financial situation to change in the near future.  That clearly is a yes.

I expect that I will receive a 3 month paid severance at the time I am let go.  That will be after March 31^st.  There are a lot of questions surrounding my team’s position in the merger.  I am in the treasury department, but my specific group does not have a counterpart at the new company, so our value to the company would not be duplicated.  I would say I have about a 20% chance of not being laid off at all.  My employer told me that I should have notice of three to six months before the layoff occurs.

I have been thinking about building up my savings a bit more for safety’s sake.  I have taken solid steps to do that.  While it is not automated, I am taking $200 per paycheck and stashing it away in a savings account.  I have maintained my $250 per paycheck student loan payment and paid off my car completely.  My only big fixed costs are rent ($615 per month), utilities ($150 per month including TV and phone), car insurance ($120 per month), and eating.

Having just finished an MBA, I am not too worried about finding a job.  However, there is always a risk that it will take time.  I am hoping to be able to spend a month backpacking in Europe and two months job hunting with the severance pay.

So, now that you know more about my future financial situation, what would you do to keep on top of things with the knowledge of a pending layoff?