Companies are acting with the greatest of loyalty these days. During the worst economic times they have no problem throwing you out on the street, no matter your age. Whether or not they are losing money is irrelevant, everyone else is doing it so should they. Anyone could get laid off, but the older you are the worse it feels. Figuring out what to do when laid off at 40 can be more difficult than at a younger age. Your 40’s are supposed to be your prime earning years, but now you are making nothing. More likely than not if you are a man you are also the breadwinner (although that is changing), which adds to the stress of being laid off at this age.
I can relate to this situation, since at 44 I was laid off during the worst recession since 1930. This site is more geared toward men, but I believe this advice can help anyone. When laid off at 40 one needs to first, accept what has happened and the emotions that go with it. Second, one needs to deal with the blowback of the situation from a family/responsibility point of view. Third, and most importantly, you need a financial and career strategy. Finally, after the dust has cleared you may start to think of this as a blessing.
Layoffs at any age can be tough, but at 40 it can be hard to see the light at the end of the tunnel. Below I break down the steps on how to deal with a layoff at 40 and some of the unique challenges’ men face.
Accept the Loss and Emotions
There will be a whirlwind of emotions that will go through a man’s mind, especially when we are older. At 40, I see all my friends hitting their stride in their careers and here I am sitting at home all day. This could be further complicated by the fact that our self-worth is tied to our earning power.
What results is anger, depression, and denial. Give yourself a day or two to accept this, but that is all. The reality is we do not have the luxury of time on our side. If you are in your 40’s the clock is ticking, a pity party and anger does not solve the problem. We are unemployed and we need to act. Other sites may tell you that it is OK to feel depressed. It is, but it does not solve anything, we need to fix the situation. The sooner you accept the reality, the sooner you can get out of it.
Telling Your Love Ones
There are people that are in the need to know and people that are not. I personally did not tell my family (father, brother, etc…) until months after my furlough. My wife on the other hand I told right away. When you are in your 40’s you may or may not be married. For me, this conversation was just as hard as being told I was furloughed.
I am going to say something that may sound harsh; even if the layoff was not your fault, your wife may look at you differently. This is especially true if she has a successful career of her own. Two weeks after I lost my job my wife tells me she wanted to split. She gave me several reasons, but there is no way one can convince me losing my job had nothing to do with it.
I am not sure if it is the same way for men. On a personal front, there was a brief time my wife was unemployed, and my feelings for her did not change. Whether or not you tell the rest of your family is up to you, I feel the less people that know the better for your psyche and the less unsolicited advice you will get.
Develop a Plan
When deciding what to do after being laid off at 40 you need to keep a clear head. You have two priorities 1) making sure your family can sustain itself 2) Finding another Job.
Let us start with making sure you and your family can sustain itself. It is important to have all the information you have about your benefits and rights from your former employer. You need to find out exactly when your medical insurance is over and what Cobra will cost. Usually you have until the end of the month to figure that out. If you are furloughed many times, you will keep your benefits for a set period. Mine was 90 days (then I was laid off anyway). This is all company specific so reach out to HR.
You also need to ask about unpaid vacation or severance. Hopefully you will have a bit of money coming in that can help cushion the blow. I would also apply for unemployment as soon as possible. These days it can take some time to get paid.
Create (or Update) A Budget
The next step after being laid off is to sit down and take inventory. Excel is your friend here, so use it to list out all your savings and expenses for the month. Look everywhere when it comes to savings you may have, including all liquid assets available. It is about sustainability; you need to make things last until you are back on your feet.
It is important to be diligent about where every penny goes. As we hit our 5th decade, we can’t afford to take on too much debt and we certainly do not want to touch our retirement savings. Cut your expenses to the bare bones and leave your future intact.
Finding a New Job: Advantages of Being Laid Off at 40
We do have a leg up on our younger brethren in some regards when finding a new position. Keep the below advantages in mind when redoing your resume and applying for a new job.
- Our Resumes Should Look Better: Twenty years of experience looks a lot better than two. Having years of a work history to pull from can be a big help when trying to be competitive. Not too mention the various, hard and soft skills, you have acquired throughout the years.
- Our Network Should Be Bigger: You probably have met a lot of people in your years in the workforce. This can be highly beneficial to the job search; you never know who will help you in the future.
- We Know the Corporate Game: Being in the workforce for 15 or 20 years should teach you the process. You know how interviewers are, the mindset of HR, etc… This is an advantage that we have over the 20 something year old kid that can not understand why he is not getting any job hits with his purple resume.
Disadvantages of Being Laid Off at 40
Things are not all roses and cream, there are certainly things working against us when we are laid off at 40.
- We Will Be Told We are Overqualified: You almost must dumb down your resume at times. After being let go two different interviewers told me I was too qualified for the job I was applying for. The pay looked right, but they thought I would get bored due to my experience.
- Age Discrimination is Real: It is almost impossible to prove but get some millennial hiring manager and you could be out of luck. Many times, they have this superiority complex or just the opposite, they may feel intimidated by you. Either way your age is considered a negative.
- Companies will try to pay you less: I notice this more during this recession, companies are low-balling employees, because they can. Allow this to happen and you can hurt your entire career. Unless it is absolutely necessary that you find work, do not take less than you are worth.
Developing a budget so as you can form some type of stability and getting a new position are your top priorities. This is also a good time to consider your future.
Is This Lay Off A Blessing?
I understand that financial worry may be the strongest thing you feel right now, but there may be a bright side to all this turmoil. I do not know you, but if I had to guess, you did not really like your job. You were going through the motions for years and now here you are.
Sometimes we need to be shaken up a bit in order to set our life on the right path. The comfortable corporate environment that we had was not conducive to living a better life. Do you really want to be a corporate slave for the next 25 years? Yes, I know getting a new job is a priority, but another priority is figuring out a way not to have to depend on a company for money. People do it all the time, it is a matter of cracking the code. Use the extra time (and anger) to develop a way to be financially independent of any company.
Even if you plan on working for another corporation developing a side income can give you F$ck you money so you never have to rely on them again.
Conclusion: What to Do When Laid Off at 40
Being laid off at a pivotal point in our careers is no fun, but it does not have to be a death sentence. Follow the steps above, realize you are not alone, and you will get through this time.
Also remember, after you hit forty the window of opportunity to direct the last half of your life is slowly closing. Use this negative experience and turn it into a learning lesson. It is time to direct your future the way you want to and not be subject to the whims of a company.