What would you do? (Job Related)

[MosMom]

Okay, I feel my husband's job is at jeopardy. His company just fired the CEO and the original CEO has taken back over. He is most likely only going to stay long enough to sell off the company though. (If you follow finance, you will know his company)

My husband is in IT but they are talking layoffs. We have casually looked at other jobs but done nothing because he will get a decent severance if he did get laid off (7 months). He has survived many lay offs with the company and I never felt like he would definitely get axed. This time, I feel the entire company is in trouble and not just him. If another company buys, do their policies take over? Could he possibly be laid off at that point and the new company have different severance policies...therefore putting us in a horrible position?

Would you just keep plugging along and hope you get the severance? Would you start actively pursuing another job? I'm not sure what to do! Apparently, there is some shady stuff going on and I just get the feeling we should transfer our 401K into some sort of holding and split!

I have no idea what to do!

 

[Bob Slydell]

I'd have him get his resume updated and send a few out, if for no other reason than to make sure he's not caught flat footed.

Odds are, even if the company is bought, the severance packages probably wouldn't change, especially if it's in writing (e.g. an employment agreement). I'd hang in there and see if either things get better or he gets laid off (especially with that severence package).

Then if he does get laid off, he can always do some contract work while he's searching for a new permanent job. Plus, he'd have more than 1/2 a year of salary in the bank to fall back on for a while. If he finds something quick enough, it's like a bonus. That's what happened to me -- and it worked out well.

Good luck to you guys.

 

[Pin Wizard]

Hmmmmmmmmmm...why does this make me think of when I worked for a company that was "raided" by a guy that bought it. Employees that had retirement plans had them vanish under him. I remember talk of legal action on that one. Don't know if anything was actually done. Their company, their policies. The jerk bought it to just make a profit selling it off again. Still remember that jerk's name all these years later. Good luck!!

**PMing you, MosMom

 

[KarenC]

I think I know where your husband works...there was a recent change in the CIO there too, right? If your husband's anything like my husband who's in IT, he doesn't relish the job search process.

If I were in his shoes, I'd be sure my resume was up-to-date and I'd start sending it out. It's still a pretty tough employment outlook for IT, and it's always easier to find a job when you have a job. If he finds something as good or better than what he's doing now, that would be great. If not, and he does lose his job, he's got a head start on the job search process.

I'm sure if your husband thinks about it, he knows of plenty of IT folks whose job searches have taken more than 7 months.

 

[aprincessmom]

I agree with Bob. Have him start working on his resume and getting his professional contacts updated and in order. He may need them.

As for severance, if it comes from the old company and it's in writing it won't change when the new one comes into place but, if he's taken on by the new company and then they lay him off the severance package would be dictated by the new company. The policies and procedures of the new company would be in place based on whatever the agreement is when the company is bought. I know when our company buys other companies, we typically keep their policies in place for 6 months or until the end of the calendar year, which ever comes first. That way we can educate the new employees on our benefits and policies.

Regardless, he should start his network working now.

 

[Lanshark]

It is an extremely tough market for IT professionals, especially those with a lot of experience which equates to higher salary. Begin looking now. The process is extremely slow and jobs are VERY hard to come by.

 

[MosMom]

Sandy,

Clean out thine mailbox!!

----

Thanks for the responses! We aren't particularly attached to this area so we would be willing to move just about anywhere. Hopefully this might help us in the search. Maybe it is fate leading us elsewhere and this is a good thing. Trying to stay positive!

Karen, you are correct. The CIO has also changed and he did have some friends who were out of work for 9 months to a year but that was back in 2001 and I assumed things had improved. Maybe not!

Chris & I haven't discussed much as he has been at work and didn't want to talk about it. I don't see any harm in starting to look elsewhere and being proactive about it.

 

[orvilleair]

I can't help you since I'm not in finance or IT, but I would look into diversifying your 401K. You hear horror stories of 401K plans full of worthless stock.

 

[ahutton]

DH was in a similar place a few years ago, also in IT at a higher level job (not a help desk tech). Actually - and sadly - it has happened 3 times in 4 years, and each time it was a good, large and "stable" company that fell apart. I agree with those who said get the resume in order. Many companies when faced with the possibility of lay offs offer "Voluntary Separation" packages, which is basically a sign up to be laid off deal. If he does find something, maybe there will be an opportunity to cash out and collect severence and turn around and start a new position. It has worked for a few people we've known and turned out very nicely.

 

[Cindy B]

My DH's company did some head honcho restructuring as well. His former job was looking like it would be redundant. (ie a parent company and subsidiary doing the same job). He was working for the subsidiary not the parent company. He then got a job (basically a lateral move) to the parent company.

Some of his former coworkers are laid off. They offered a voluntary severance which was pretty good, if they hung on for a certain time. Some people left prior to that.

In the IT profession, its tough. Some folks are so good, and so needed that the company wants to keep them. Lately though, they have been outsourcing some it positions as well.

I realized I couldn't do a thing about it. It was myDH's position, and he had to make his own decision about it. Would I rather him look for a different position? Well, the lateral move was less commute time, more flexible, and no 4% wage tax. So in essense the lateral move was a 4% raise.

It was up to him ot make that decision. He could contract if he wants since he is on my health plan from work.