How I Turned a Layoff into a $6,000 Raise

I’ll never forget the morning that I found out my old company had been acquired. While getting ready for my day of volunteering, I turned on Denver’s 9 News just like every morning. But this day was different. Business reporter Greg Moss, usually entertaining me with market and local business news, was telling me that my company had been agreed to be acquired by a competitor in Louisiana.

I was out in an elementary school that day volunteering with hundreds of other co-workers around the city teaching a class for a day of Junior Achievement. My co-teacher, a woman from the marketing department, was afraid she might lose her job. In finance, I was a bit more realistic to what my future would hold.

That was the day I knew I would eventually be laid off.

The News

In my old position in the treasury department, I knew something was up. Our entire senior finance staff was off in New York on a secret meeting. But still, on April 23, 2010, just like most of my colleagues, I found out from a news story like this:

I had figured we were going to be buying a smaller company, but I was backwards. We were the company being purchased, and I worked in the well-known Qwest Building in downtown Denver. My first thought, I probably need a new job.

The True Meaning of Synergies

Almost every time I read about a big merger or buyout announcement, one of the first words in the article is synergies. Here’s a snippet from a press release about the recent Zillow/Trulia acquisition making use of a favorite business buzzword:

By operating independent consumer brands through one corporation, the companies expect to realize synergies to improve overall operational efficiency over the long-term. By 2016, management expects to achieve at least $100 million in annualized cost avoidances.

So, what exactly are these synergies that Zillow expects to find to save $100 million per year? Layoffs. People are expensive. Think about it, in addition to salaries that can easily pass six figures, there are bonuses, 401(k) plans, paid vacations, and insurance costs.

Both companies in a merger have an executive team and headquarters functions like finance, human resources, accounting, marketing, and legal. They only need one set of people to do that work, so headquarters staff is usually the first to go.

I Started Looking

After the big news, I knew that my Senior Treasury Analyst job may be on the chopping block soon. It would be a little while before the merger would be approved by the government, so I knew I didn’t have any urgent need to leave.

But I started looking around. I didn’t look very actively, but I knew that I would most likely be laid off shortly after the merger closed. I updated my resume and LinkedIn profile. I browsed some online job openings. I started to get a feeler of what would be available. Then I got a note from a friend from my MBA program:

Hey Eric,

I hope you’re having a good summer.

I wanted to reach out to you see if you have any interest in possibly interviewing in our FP&A group here at my company? I don’t know if you have an idea of how things are shaking out at Qwest, but there is an opening here that they are looking to fill with someone with some telecom/finance background and you immediately came to mind. Please let me know if you have any interest.

So I wrote back. And not too longer later I was in for an interview. And I didn’t get the job.

I wasn’t too disappointed. It is common to not get a job after an interview. It happens. But I was surprised a couple of months later when I got another call from that company that another position open up on the same team, one step higher than the first one. I went back and interviewed again. And I got it.

I Landed a $6,000 Raise

Moving companies is always a big risk, so I always advise my friends and family to not leave a comfortable job that you are good at unless you are leaving for something significantly better. I thought $6,000 a year and no pending layoff were a pretty good deal.

While everyone doesn’t have a friend calling with a new job opportunity regularly, there are some lessons we can all take from this story and apply to any career.

Always Keep Your Professional Face Forward

I updated my LinkedIn profile with all of the best selling points of my past jobs and positions, and the message I received came in through LinkedIn.

While that friend already knew me, sharing that LinkedIn profile with the boss was the first impression he had of me. If I had a weak profile, I may never have had the opportunity to interview for that job.

Don’t Neglect Your Network

That friend from the MBA program was part of my network. It took me a while to fully appreciate what “networking” means for business, but it really just means keeping your relationships strong. Whether you have friends in similar career paths from school, professional groups, or elsewhere, don’t forget about them.

I likely never would have found my way to that company, where I worked for three years, had I not maintained that particular relationship, I may never have had that opportunity.

Don’t Sell Yourself Short

Most importantly, when dealing with your career or anything else in life, never discount yourself and your abilities. I worked hard and spent a lot of time (and money) building up my skill set. I know that I am great at what I do, and I’m worth a salary for an in-demand finance professional.

When I moved, I was not going to jump ship for a few hundred dollars. I wanted 10% or more. With this move, I got it.

Your Career Change Stories

How have you navigated tough situations in your career? Have you ever moved job with a raise of 10%, 20%, or more? Share your experiences and best tips in the comments.

Comments

  1. says

    It definitely sounds like everything worked out well for you! Good job!

    Networking is so important, just like you said. I think too many people forget that and don’t try hard enough to network.

    • says

      Networking is hard for a lot of people who are not as comfortable chatting and not as good at keeping in touch. It can lead to huge benefits down the road, so it is always worth the extra effort.

  2. says

    I moved companies for a big increase. Now what would have been really sweet was if you got a severance package and then landed the new job. cha-ching Sometimes it’s not worth the risk of waiting though. You have to go for the sure thing.

    • says

      That would have been pretty sweet. If I had waited it out, I would have had a 3 month severance from the old company. But if I had waited, I certainly wouldn’t have ended up with the job I did. Not sure what I would have ended up with. Based on the circumstances, I definitely made the right decision at the time.

  3. says

    Good work having your head out of the sand. My company has been laying off people lately and it is definitely stressful for a lot of people.
    I am impressed that you landed on your feet so quickly and so well. I keep meaning to put effort into updating my LinkedIn profile while I don’t need it, but always seem to put it off.

    • says

      It is always smart to keep your best foot forward, and for many professionals that means keeping an updated LinkedIn profile even when job hunting isn’t on our mind. You never know who might like your profile and send you an email for a great opportunity.