By Mike Gibbons, RICP®
Despite low unemployment and many job vacancies, companies across the United States continue to cut their workforces. Fears of recession and market challenges linger as the national economy bounces back from the COVID-19 pandemic.
The biotechnology and pharmaceutical industries haven’t been immune to the spread of job-cutting across the nation, with biotech and pharma continuing trends from 2022 to add to the number of laid-off employees.
Driven mostly by market challenges and end-of-year restructuring, layoffs in the pharmaceutical biotechnology industries may continue right through the end of the year.
Abbott Laboratories announced job cuts in May of this year. Still, there hasn’t been any official announcement about layoffs from AbbVie Inc., which recently announced the acquisition of Cerevel Therapeutics and ImmunoGen.
For any Abbott or AbbVie employees who might have been affected already or have concerns about losing their position, here are some steps to take after being laid off.
What to Do Now After You’ve Been Laid Off
Being laid off can leave you dazed, confused, and even angry. The Harvard Business Review suggests the first thing you do after being let go is nothing. That’s right—nothing! Leave with dignity and just take advantage of the downtime.
Take at least 24 hours to process having your job taken away from you. Other business experts suggest taking even more time—as much time as you need—for self-care. And that processing and self-care begins with understanding that what happened is not because of anything you did. The company either didn’t plan well enough or ran into unexpected market headwinds.
Your job performance had nothing to do with your job loss. Once you’re done processing your job loss, get to work.
Get a Hold on Your Financial Future
Now it’s time to focus on your financial and physical well-being. Taking proactive steps as soon as you’re ready can help you take advantage of some of the benefits from your former employer and help you keep your financial future on track.
You likely have an emergency fund that can tide you over for a few months without working or touching other savings and investments. But as with any financial transaction, you don’t want to leave money on the table. Now is the time to register for unemployment. Many states have waiting periods, so get in early.
With that done, find out where you stand financially. Gather information on all your assets, your debt, your household budget, your goals, and your retirement plans. You may want to include your 401(k) and any other savings, investment, or retirement investment plans. Also, were you offered a severance package? How close are you to retirement? Do you want to change industries, or do you even want to continue working?
And don’t forget about your healthcare benefits. By this time of the year, you probably have met your deductible. Before your benefits expire or if they get extended, now would be a good time for you and your family to take care of healthcare issues you might have put off earlier.
With all your financial information gathered, make a plan. You might be able to go this alone, but because the Gibbons Financial Group advisors are intimately familiar with your benefits, we can help you avoid pitfalls, envision a brighter future, and identify opportunities you might not recognize on your own.
Start Your Job Search or Prepare to Retire
If you’ve decided you want to continue working, get on your computer or get out a sheet of paper and write down all your accomplishments. Next, talk to people in your network—old bosses, former colleagues, and former competitors—to get a sense of the job market and how you fit into it. Finally, dust off your resume, update it, and remember to target it to the specific job you want.
If you decide to retire, the Gibbons advisors can help you wade through your financial data and develop a plan that can help maximize your savings, investments, and Social Security, and minimize your tax obligations to help you have a long and comfortable retirement.
Find a Financial Advisor
If you were laid off by Abbott or AbbVie or think you might be cut soon, the Gibbons Financial Group can help with your financial planning. We have partnered with folks in your situation, and we can help you too.
Call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018.* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.