With the closing of Bermuda Bakery making production facility, came the loss of long-term jobs. And for those of us who remember the heavenly aroma of fresh bread wafting over Hamilton all the years we've been in town, it's another kind of loss - that of one less group of local products produced locally by local people. Since the first of the year, several other firms, including, Hedgeworld, have also quietly downsized.

Survival tactics

Unfortunately, after three years of a ruinous bear market, global companies continue to practice cost efficiencies (polite words for reducing their domestic labour force, or farming it out to a lower cost environment) wherever they can. Seeing these redundancies, the general public perceives companies to be greedy and totally heartless.

In reality, these companies are practising survival triage (from the French verb to sort). The original meaning of triage is a process for sorting badly injured people into groups based on their priority need for emergency medical treatment when very limited medical resources must be allocated. Change limited medical resources to limited capital resources, and it is clear why companies downsize.

They must place their now considerably depleted capital into revenue areas that will generate profits. No company in the world can operate altruistically and unprofitably because the final unpleasant alternative is to go out of business. Then no one has a job.

Warning Signals

Is your job in jeopardy? Is your internal radar sending you intuitive messages? Keep your antenna tuned to what is going on in your work environment. One networking associate told me that he knew his job was going when his manager stopped looking him in the eye.

What to do if you think your company might be announcing redundancies.

Review your finances.

Do you have enough cash right now for three - six months of rent or mortgage payments, utilities, phone, gas and food?

No cash cushion? You must save now as if your life depended on it. It does. Stay in this survivor mode until you know for certain that your job is still intact. The positive savings results won't hurt.

Stop spending on everything that is unnecessary, cell phone overage, eating out, snacks, new shoes, leisure & clothes & shopping sprees, vacations, little expensive electronic treats. Cut your food budget down to plain practical small portion meals. You'll lose weight in the process.

Home Equity line - if you are a two-income earner family and own your home, arrange to have an equity line put in place now. You cannot borrow money if only one of you has a job, and you don't have to draw on it unless you absolutely have to.

Get your C.V. updated immediately and start to explore other employment opportunities.

Allow for increased dry cleaning and personal grooming costs. In your job search, you must be an absolute confident polished professional at all times. Remember that the first impression is the only impression.

Be Proactive, not paralysed. If you are sure the company is downsizing, consider talking to your current employer about a separation package. Those who volunteer themselves out the door first, often walk away feeling very financially fit. Warning, do not attempt this move without reviewing your personal finances and being sure you have a new job available first.

What to do if you do lose your job.

lGet rid of the anger (and the bitterness). Do not show it during the exit interview or afterwards. What goes around comes around; if the business model changes, you could be first hired back. At the very least, ask for a really good reference and be sure to get it in hand before you leave.

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Negotiate the best termination package you can. If you are allowed to stay for another couple of weeks, do so. Use that time (and their equipment) to network with everyone you know. Update your CV if you have not done so already.

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Increase your athletic activities. This is not the time to let yourself go. Work out that anger and frustration on the fastest walk, run, bike, swim, you can. You'll feel better; your physical appearance will improve. Watch your body language and attitude. You do not want to appear defeated.

Decrease physical intake of cigarettes, alcohol, and food snacks. These are all depressants and will not lift your spirits, and only inspire negativity when you are emotionally exhausted.

Count your cash, literally.

Then figure out an absolute bare-bones subsistence level monthly budget.

Look at your other resources in the order you will have to cash them in; first savings; then investments; then cash value of whole of life insurance, if you own a policy; then loans from family members; income from part-time work.

Add them up and divide by your bare-bones budget figure. This exercise will allow you to calculate just how long those resources will last until you secure another full-time job.

If you have an expensive car loan, consider selling the vehicle, and clearing the debt. If you can't make the payments, the car will be taken away. Then, how do you get to your new job?

If you have a mortgage, visit your friendly loan officer and arrange for interest only payments until your new job salary kicks in.

Avoid charging food and necessities on credit cards, even in desperation. You will pay for them hundreds of times over.

In drastic circumstances, apply for financial assistance sooner rather than later.

If you receive a termination package, do not, do not I beg you, fritter it away on a trip because you are stressed, or a new car you cannot afford. Think of that lump sum as your head start for your future goals.

Being made redundant is nothing to be ashamed of; it wasn't your fault. You have just been hit hard, now use every single bit of your personality, your faith and your family support to fight back and win, yes, win yourself another job.

You can do it, you will do it, and you must do it. Good luck.

Martha Harris Myron CPA CFPr is a Bermudian, a Certified Financial PlannerT(US license) practitioner and VP, Personal Financial Services at Bank of Bermuda. She holds a NASD Series 7 license, and formerly owned a US financial services practice meeting the needs of 400 individual and corporate clients.

Confidential Email can be directed to marthamyron@northrock.bm

The article expresses the opinion of the author alone, and not necessarily that of Bank of Bermuda. This article is for information purposes and does not constitute recommendations to buy or sell investment products or as a promotion for financial plans. The Editor of the Royal Gazette has final right of approval over headlines, content, and length/brevity of article.