March 2nd, 2010

IBM Layoffs 2010 are a Buzzing Rumor.  In the wake of the crumbling economy, it comes as no surprise that companies are cutting back. The latest layoff rumors are coming from computer giant IBM.  The name of the initiative to cut back the workforce is called “Resource Action” and many employees are scared of being “RA’ed.”

10,000 employees work for IBM in Raleigh, North Carolina and many are afraid of the rumored layoffs.  In addition, various news media outlets in areas such as Rochester, Minnesota have also reported on potential cutbacks.  KTTC in Rochester reported that a worker from Toronto who had worked for the company for 32 years was cut back, and that his manager told him that it was a North-America wide issue affecting 5% of the work force.

The news initially broke on the website of an organization that is seeking to unionize IBM.  As with any job loss, it’s very tragic and sad – especially for those who made their careers at the company.

What can you do to prepare yourself for potential unemployment? There’s no easy way to go about planning for the worst, but you may find that if you do you will feel much more at ease should you get the pink slip.

Here are some steps you can take:

- Prepare a list of your critical bills.  This will include your mortgage, insurances, medical bills, etc

-Prepare a list of bills that you could negotiate if you had to.  For instance, if you lose your job, many credit card companies will suspend payments for a certain amount of time.  In addition, certain medical care providers will could do the same, or direct you to charities that are willing to help you pay your bills.

-Look at the last three months of spending.  Do you go out to eat a lot? If so, try to cut that part of your budget in half, and save the half that you would have spent for expenses during bad times.

-Look into employee benefits that you are entitled to.  Are you going to pay for COBRA insurance? Will you qualify for a hardship withdrawal from your IRA or 401(k)?  Are you entitled to severance pay?

IBM has not commented on the layoff rumors, therefore at this time the reports are unconfirmed.

Source:
Huffington Post