A steady stream of pink slips have been handed to workers across the United States, and Lawrence hasn't been spared the pain of job cuts.
Lawrence-based Oread Inc. abruptly swept 75 people out of work a few weeks ago and has left another 75 uncertain for at least another week.
Disney Internet Group is closing its telemarketing center in Lawrence, moving nearly 60 employees out of town and slashing 115 seasonal jobs. And Honeywell is moving 115 jobs from its Lawrence avionics plant to a larger operation in Olathe.
Oread's bankruptcy filing Feb. 12 didn't hit Tom Matches immediately he's still on the job through Saturday but that hasn't stopped him from pondering future finances even as he collects a paycheck.
"I've thought about it," said Matches, Oread's manager of methods development and validation. "How far will the salary take us? What do we have in savings? How long will this last us?
"I'm fairly confident we will find something. It's just figuring out when the clock gets serious."
Plan is crucial
During a nationwide wave of layoffs and shutdowns that also has hit some of the biggest companies in the country including DaimlerChrysler, JC Penney, Montgomery Ward, Dell Computer and others affected employees must have a clear, focused plan if they're to survive financially until they land another job, money-management and labor experts said.
"They need to be very careful about the money they're spending," said Ginita Wall, a certified financial planner in San Diego and author of "The Way to Save." "They need to cut their spending way down."
People left out-of-work need to know what they're up against, which means the first thing to do is to list all expenses.
"Start with expenses like rent, mortgage, food," said Ray Hooper, education marketing and public relations manager at Consumer Credit Counseling Service of Greater Dallas, which offers a class on surviving job loss.
Secondly, list sources of income and any assets that can be converted into cash.
Apply for unemployment benefits.
"The first thing they need to know is what their severance pay is," said Damian Birkel, founder and executive director of Professionals In Transition Support Group Inc. in Winston-Salem, N.C., which helps unemployed professionals.
Live off your severance pay first before tapping other sources of income, Wall said.
"That's the money to use for the groceries," Wall said. "That's also the money to use to make your mortgage payment.
"People are tempted when they're laid off to skip the mortgage payment, and if you skip one, how are you going to make two of them the next month?"
Ask for help
Oread a onetime contract-pharmaceutical powerhouse didn't offer employees severance packages, and told workers to settle unpaid vacation issues with the U.S. Bankruptcy Court. The company dissolved.
"There are a few people the single moms with kids who don't know what they're going to do," said Dan Brobst, a lab technician cut loose Feb. 12. "I've cut out some of the unneeded expenses, like going out to eat more than once a week. I've put off buying a couple things I was going to buy maybe a new car but nothing major, nothing that's needed."
Experts also say that laid-off employees should not be afraid to ask for help. Let creditors know about the job loss and try to negotiate new terms for repayment.
Bettye Banks, senior vice president for education at Consumer Credit Counseling, warns against succumbing to "credit card temptation when out of work.
"The temptation to live on credit cards during difficult times is quite strong," she said. "A worker with good credit can support the family at the current standard of living by using credit for a limited period of time, but there is no guarantee a new position will be found anytime soon."
The rule of thumb among employment counselors is to expect a job search to last one month for each $10,000 of annual salary, Banks said.
Someone earning $60,000, therefore, should expect to be out of work for six months.
Insurance a priority
But even an extended search doesn't mean people should cut all living expenses to the bone. Some things are essential.
Among the top priorities is health insurance, advisers say. Coming down with an illness or injury without insurance coverage can make an already-painful situation worse.
If an employer won't pay to keep employees insured, check out a spouse's plan.
Under the federal Health Insurance Portability and Accountability Act, if you're laid off and your spouse has employer health care coverage, you must be allowed to enroll in his health insurance plan.
Shifting investments
One way to free up money is to change investment strategies, financial advisers said. Investments that are not in tax-deferred retirement accounts are one place to start.
"Change your portfolio," said J. Richard Joyner, a partner and head of the Personal Financial Counseling practice of accounting firm Ernst & Young in Dallas.
"You may have a lot in stocks, which won't generate cash flow," he said. "You have to have a heavier concentration of cash and bonds."
Finally, advisers said, don't be such a tightwad that it means a miserable life during unemployment.
Matches, who has spent 10 1/2 years at Oread, said he was busy wrapping up responsibilities at work and conducting a job search. Since posting a rmn the Internet, he's already heard from more than a half-dozen recruiters.
But he doesn't plan on rushing into anything.
"It's just a change," he said. "It's something I've got to deal with. It's an inconvenience it's more than an inconvenience, but I'm comfortable I will find something.
"It's just a matter of putting the pieces together."
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