In today’s world, job security is no longer guaranteed, especially in private companies. Every few weeks, we hear news about mass layoffs – especially in IT, BPS (Business Process Services), and service-based industries – mainly due to economic slowdown or new technologies like Artificial Intelligence (AI). AI is now doing tasks like writing code, creating content, answering customer queries, and analysing data, which earlier needed skilled
professionals. Similar disruptions are also happening in other sectors – for example, in the automobile industry, electric vehicles (EVs) are reducing the need for traditional auto parts and manufacturing jobs. In banking and finance, digital apps and automation are replacing many branch-level roles. Even in media, marketing, and design, AI tools are being used instead of hiring large creative teams. Because of this rapid change, companies are reducing staff and changing the way they work..
This is not the first time. In the past, also we saw this:
- When machines came in factories, many labourers lost jobs.
- When computers came, many manual jobs became automated.
Now, in the AI age, we are seeing the same thing again.
This is a worrying time for many people, especially those who have been working for 15–20 years and are now at the mid or senior level in their careers. If you are also in this stage, this post is specially for you. In simple words, we will explain how you can become financially secure and protect your future, even if a layoff happens.
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Why Layoffs Are Happening and When Will Layoffs Stop?
Why Layoffs Are Happening
Over the past few years, layoffs have become a recurring headline across industries, from technology and finance to manufacturing and retail. There are several reasons why layoffs are happening, and each is closely tied to the changing economic and business landscape.
- Economic Slowdowns – Global events such as the COVID-19 pandemic, inflation, and geopolitical tensions have caused uncertainty in markets. When businesses face reduced demand for their products or services, they often resort to cost-cutting measures, and unfortunately, workforce reduction becomes one of the most immediate options.
- Over-Hiring During Booms – Many companies, especially in tech, hired aggressively during periods of rapid growth, expecting demand to continue. When market conditions cooled, they found themselves with more employees than needed, leading to large-scale layoffs.
- Automation and Technological Shifts – Advancements in artificial intelligence, machine learning, and robotics are making certain roles redundant. While automation increases efficiency, it can also lead to the elimination of positions that can be performed by machines or software.
- Restructuring and Mergers – When companies merge or undergo restructuring, duplicate roles are often consolidated, resulting in layoffs even when the business as a whole is stable.
- Investor Pressure for Profitability – Publicly traded companies face constant pressure to deliver strong quarterly results. When expenses rise or profits drop, investors often push for cost reductions, which can trigger layoffs.
When Will Layoffs Stop?
Predicting when layoffs will stop is challenging because it depends on multiple global and local economic factors. However, there are signs that can indicate when job cuts might slow down.
- Economic Recovery and Growth – Layoffs tend to decrease when consumer spending rises, interest rates stabilize, and businesses see steady demand. If economies worldwide recover from inflationary pressures and geopolitical disruptions, companies may shift from cutting jobs to hiring again.
- Completion of Restructuring Cycles – Many industries go through “restructuring phases” where layoffs happen in waves. Once this cycle is complete and organizations are leaner and more efficient, the pace of job cuts usually slows.
- Stabilization in Technology Adoption – While automation can cause job losses, it also creates new opportunities in emerging roles. As industries adapt and reskill their workforce, the disruptive phase of technology transitions may calm down, leading to fewer layoffs.
- Improved Business Confidence – Layoffs are often a sign of uncertainty. When business leaders feel confident about future demand, investments, and market stability, they are more likely to retain or expand their teams.
In reality, layoffs may never completely disappear because companies will always adjust their workforce to match business needs. However, they can become less frequent when global conditions are favorable, businesses operate more sustainably, and employees adapt to evolving industry requirements through upskilling and reskilling.
The Real Reason We Fear Layoffs – And How to Stay Secure
losing a job can feel like a major setback. It can shake your confidence and bring emotional stress. Even those who are still employed often carry the silent worry: “What if something happens tomorrow?”
But here’s the truth — the main cause of this worry is not just the job itself, but financial dependence on a single income. Most people rely entirely on their salary to meet daily needs — rent, groceries, school fees, bills, and more. If that salary suddenly stops and there’s no backup in the form of savings or investments, it naturally creates stress.
The good news? This is a challenge we can prepare for. With the right financial planning, smart investments, and skill upgrades, you can create a strong safety net. That way, even if one door closes, you’ll have other options open — and peace of mind.
Now that we understand the problem, let’s see the solution. There are two options here
A. Second Income: Great but Not Always Practical
You can try to create a second income through part-time work or small business etc. But let’s be practical — this is not possible for everyone.
Many working professionals face challenges like::
- Long working hours
- Company employment policies do not allow part-time jobs or running any side business
- Weekend office work or calls
- Family responsibilities (kids, elders, etc.)
- Long travel time between home and office
So while creating a second income is useful, it is not practical for all. That’s why it becomes even more important to create an investment-based monthly income.
B. Investment-Based Income: A Practical Solution
This is the more practical and stress-free option. You can invest your money regularly in such a way that your investments will give you monthly income – enough to cover your expenses. This is called Financial Freedom.
Let’s understand how to do this. in below two Steps
Step1 : Track Your Monthly Expenses and Set Your Goal
The first step is to create a simple Excel sheet or use any budget app to track your monthly expenses. Include things like:
- House rent / EMI / Housing Society Maintainance / Property tax
- Groceries
- Utility bills (electricity, water, internet, mobile connection etc.)
- Children’s school fees
- Medical expenses
- Travel, entertainment, etc.
If you are unmarried, don’t forget to add expected future expenses.
Now, think long-term. Suppose your current monthly expenses are ₹30,000. But due to inflation, this will not remain the same. After 15 years, it might be ₹60,000 or more. This will give you a monthly expense target.
Step 2 : Start an Investment Plan to Cover Future Expenses
Now that you know your target (say ₹60,000 per month), plan your investments in such a way that your future income from investments gives you that much money.
This can be done by investing regularly in investment options like:
- Mutual Funds (especially Step-Up SIPs)
- Public Provident Fund (PPF)
- Employee Provident Fund (EPF)
- Fixed Deposits
- Recurring Deposits
- Rental properties (if possible)
- Dividend-paying stocks
Over the next 10–15 years, these investments will grow and create a corpus (a large fund) that will give you regular monthly returns (interest/dividends/rent).
We have created a special “Step-Up Calculator” for you. Use it to calculate how much you need to invest monthly to reach your goal. You can increase your monthly investment every year as your salary increases.
What You Should Do – Based on Your Career Stage
Everyone’s situation is different, and your career stage plays a big role in what steps you can take. So instead of getting worried, just see where you fit and take action from there.
Let’s break it into three simple parts:
1. Early Phase (0–7 years of job experience)
If you are in this phase, you are in the best position to prepare for the future.
You have time on your side. This is the time to:
- Learn new, future-ready skills
- Start saving and investing early (even small amounts matter)
- Build habits of budgeting and tracking expenses
- Try second income options (freelancing, online business, etc.)
- Aim to become financially independent in the next 10–15 years
Think of this as the foundation-building phase. If you plan smartly now, you won’t need to worry much even if your job changes later.
2. Mid Phase (7–15 years of experience)
In this stage, you are still in a safer zone, but you need to act a little faster.
You may have more responsibilities like family, EMIs, and kids — but you also have a steady income and some savings history.
Now is the time to:
- Continue upgrading your skills so that your role stays relevant
- Review and improve your investment plan — aim to reach your monthly expense goal
- Cut unnecessary expenses and increase SIPs or investments
- Create an emergency fund if not already done
- Get personal health and term insurance
This phase is like second innings planning. You still have time — just need to be more focused and efficient.
3. Experienced Phase (15+ years of experience)
This is the phase where many people feel the pressure, but let’s focus on the positive side:
- You have a decent PF balance, possible gratuity and leave encashment
- You may have already bought a house or car, or repaid some loans
- You may have investments in mutual funds, FDs, gold, land, etc.
But yes, some new responsibilities also come in — like kids’ higher education, ageing parents, etc.
Now what should you do?
Step 1: Upskill Yourself Quickly
Since you already have years of experience, upskilling will actually take less time for you — especially if it’s in your own field or in leadership, project management, or strategic roles, which are in high demand in this phase.
Why is this so important?
Because if your investment journey hasn’t started early or hasn’t reached the required level, it will take time to build. But a new skill can save your job today — or help you find a new one faster.
So don’t delay — even short-term or weekend certifications, online programs, or hands-on learning can make a big difference.
Step 2: Review Your Finances
Check how much you have in PF, gratuity, leave balance, investments, gold, and other assets. Now find out how much extra you need to cover your monthly expenses through investment returns.
Step 3: Reduce & Fast-Track
Cut down unnecessary expenses. Increase your savings or investments. Even if you start now, you can catch up faster with disciplined action.
Remember, you are not late — you just have to be smart and quick from here onwards.
Other things you should Consider:
1. Take Independent Health Insurance for You and Your Family
Most people depend on company-provided health insurance. But what if you lose your job?
That policy stops the moment your job ends. After that, getting a new insurance policy becomes difficult due to:
- Age (yourself or your parents)
- Health conditions (which may come with age)
- Higher premiums
So, it is always better to have a separate personal health insurance policy (in addition to the one given by your employer). This will protect your savings from any sudden medical expense.
2. Upskill Yourself – Stay Relevant and Employable
While financial security is important, it is also important to keep improving your skills. You must stay relevant to the market.
Keep learning new tools and technologies
Know what’s happening in your industry
Learn AI tools and understand how you can use them in your work to better outcome
Take online courses, certifications.
Improve communication and leadership skills. These are always in demand and must at senior levels.
Why people don’t upskill? When we asked some employees, they said:
- Too much workload
- Weekend work
- Family time
- Long travel
That’s understandable. But now, in this fast-changing world, you must make time. Even if it’s just 15–30 minutes daily. It can change your future
3. Build a Safety Fund (Emergency Fund)
In addition to investments, always keep 6 to 12 months of expenses in a separate savings account or liquid fund. This is your Emergency Fund. Use it only in case of job loss, medical emergency, or other critical needs.
This will give you mental peace and confidence even if you are between jobs.
4. Involve Your Family in Financial Planning
It’s always better to involve your spouse and even children (if old enough) in money matters. Explain your budget, goals, and expenses to them. This is must to get support from family and keep your Fianancial goals on track.
Please talk openly with your family about:
Backup options in case of job loss
Monthly expenses
Current investments
Insurance policies
Many times, people do not plan and share these details, and the family is shocked when you cut expenses.
A family that understands the situation can help control expenses, support mentally, and work together to reach financial goals.
5. Keep EMIs Low – Avoid Unnecessary Loans
In uncertain job markets, one of the biggest financial burdens is EMI. Many people take loans for everything – car, phone, electronics, even vacations. But during a layoff or income break, EMIs continue. This adds unnecessary stress.
Try to follow this simple rule:
If you can buy something with savings – avoid taking a loan.
Even for home buying, calculate carefully. Don’t stretch beyond your budget. If you are planning to buy a house, first compare whether renting is a better and safer option in your situation.
You can use our special tool to compare both options:
👉 Use EMI vs Rent Calculator – MyBudget.in
This will help you take the right decision without future stress. A low or no EMI life gives you more freedom, especially in uncertain times.
Your Financial Security Checklist
Here is a quick checklist to help you stay secure during uncertain times of layoff:
✅ Track your monthly expenses
✅ Calculate future needs after inflation
✅ Start long-term investments to build passive income
✅ Buy independent health insurance
✅ Keep upgrading your skills
✅ Maintain an emergency fund
✅ Involve your family in money planning
✅ Use tools like our Step-Up Investment Calculator to plan smartly
Final Words: Start Now, Not Later
Whether you are just starting your career or already 15 years into it – this is the right time to act.
Layoffs are becoming more common, and AI is only going to grow. But with smart financial planning and regular upskilling, you can protect yourself and your family.
👉 If you are in early phase, invest regularly and build your passive income.
👉 If you are in mid-phase, fast-track your saving and focus on upskilling.
Remember, job may come and go – but your skills and investments stay with you.
So don’t wait for things to go wrong. Start your financial freedom journey now. Visit MyBudget.in and explore our free tools and guides.