If you are a technology worker, 2023 will be forever known as the year of mass layoffs. A month-by-month breakdown by Tech Crunch reports that over 240,000 workers in the sector lost their jobs. I was among them. Companies like Google, Microsoft, Meta, and Salesforce all had huge workforce reductions. While the pace of layoffs seems to have slowed in the last quarter of the year, predicting what the new year holds remains uncertain. If we see a repeat of last year, and there are rumors abound, here are 5 steps you can take in the first quarter of 2024 to help you be prepared.

This article assumes you have an emergency fund and acknowledges variations in benefits and policies across companies.

1. Fully Utilize Company Benefits Early in the Year

Health Insurance

Schedule wellness visits: an annual physical, dental cleaning, eye exam, vaccines, or mammogram for your yourself and your family if applicable. These are typically paid at 100%. Plus, if you need further dental work, or eyeglasses or contacts, you can get reimbursed for these claims early in the year.

Convert eligible medications to a 3-month supply. Similarly, if you have a medication you take regularly, don’t let it lapse by even a few days. I know of someone who met his deductible for the year, needed a costly medication, and was laid off days before he got around to refilling it.

NOTE: If you have met your insurance deductible in April and lose your job in May, your COBRA deductible will reset, and you will start again at zero. Furthermore, if you lose your job have a Limited Purpose HSA or FSA, you will lose the money you contributed if not spent.

Other Perks and Benefits

401k

The average 401k company match is 3% of your annual salary. For simplicity, let’s base this on a $100k salary. I know people who will contribute $3k in the first quarter of the year to get the company match out of the gate. Then change it back to a lower amount.

You could be out of work for months after a RIF with no 401k contributions during that time. This is especially important for older workers. Plus, a company’s match does not count towards your annual 401k maximum. If you have an emergency fund and can afford to do so, this might be something worth considering.

401k loans:

Most of these loans give you 5 years to repay if you are employed with the company. In the event of a voluntary or involuntary termination, you only have a few months to pay the loan back IN FULL. If there is any possibility of a RIF at your company, you may to reconsider taking out this type of loan.

Charitable Donation Match:

Some companies will match a certain dollar amount for charitable donations. If a particular charity is important to you, make the donation now instead of the end of year to ensure the matching funds.

Wellness Benefit:

If you have a fitness benefit that allows you to buy an annual gym membership, do this now instead of month to month. Or purchase fitness equipment.

Legal Plan:

Schedule an appointment to establish essential legal documents, such as an estate plan or living will. Often these documents can be created on the legal plan’s website if your situation is straightforward.

Employee Stock Purchase Program (ESPP):

Some companies will allow employees to purchase their stock at a significant discount. Or add it to their 401k plan. Despite the layoffs, technology stocks are on the upswing. If you feel your company stock is a sound investment, then take advantage of this opportunity.

Tuition Reimbursement:

Exercise caution with tuition reimbursement, especially if a restructuring may be imminent, to avoid potential non-reimbursement of an expensive course mid-way through. Even if your course was pre-approved.

Phone/Internet/Home Office:

Submit expenses these types of expenses on time. Again, if you delay and the worst happens you will not get reimbursed unless the expense was already submitted.

2. Update your Resume or Create a New One

I know a company that laid off their entire QA team. When something like this happens, you could all be competing for the same jobs. Having your resume ready to go may give you a competitive advantage.

This could be its own article. Especially when it comes to de-aging your resume. But let’s cover a few key points.

Keep your resume concise, avoiding dated paragraph formats. The notion of preparing resumes in text editors for ATS compatibility is outdated, as modern HR software platforms allow for efficient data transfer.

Eliminate the “Objective” section, replacing it with a “Professional Profile” featuring impactful bulleted items aligned with job requirements.

Limit your resume to two pages, focusing on the last 10 years of relevant experience. Exclude outdated technology experience unless specified in a job description. The tech industry is geared toward younger workers and these two items will age you.

3. Optimize your LinkedIn Profile

Like resume updates, this could be an entire article all its own but here are some quick tips.

Every recruiter or potential hiring manager will look at your profile. Before making changes, turn off the setting that notifies your network whenever you make a change by going to Settings > Visibility > Share Profile Updates with Network.

Customize your URL. It will look much more professional than the default with a bunch of numbers added. You would never use an email address like this, don’t let this be your LinkedIn URL. Go to your profile > on the top right click Edit Public Profile and URL > Edit Custom URL

Invest in a professional headshot, or ensure your current photo is clear, solo, and professional. Don’t use an avatar. Consider changing the default LinkedIn background or cover photo for a polished profile.

Expand your network to leverage potential referrals and opportunities.

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