COLUMN: Ask the Money Lady – Job loss or layoff

Dear Money Lady,

I think my company is going to lay me off soon. I was wondering if you had any advice. Mike.

Hello Mike, this is a good question – one that many Canadians may be thinking of. This year in Canada, 58,000 tech jobs have been cut across multiple sectors, and 10,000 federal government jobs have also been put on the chopping block. Even the big banks are restructuring, with TD Canada announcing a layoff of 2,000 jobs, BMO Bank of Montreal restructuring 1,500 Canadian jobs, and RBC Royal Bank now in its second employee restructure since January 2025. Just because you’ve been with your employer for decades doesn’t mean you’re safe. So, what do you do if you find yourself on the other side of a pink-slip?

First of all, if you suspect that you may potentially be let go soon – please act now before it happens. Take a day off and visit your bank or credit union to get your finances in order. Consolidate your debt if needed, or at the very least, apply for a secured or unsecured line of credit. Do not tell your banker you’re wanting to do this since you think you may lose your job. That’s the fastest way to “shoot yourself in the foot” and NOT get approved. Instead, tell them you want to get your finances in order and make sure you have everything setup properly for your family’s future. You should have no issues qualifying for a consolidation loan or a line of credit with a good job history and a current paystub.

Next thing is to make sure you know your rights. Have a conversation with an employment lawyer and discuss with them your possible future concerns. Make sure you don’t sign any documents during an employment “exit-meeting.” Yes, you have to accept that you will no longer have a job, but you don’t have to accept their terms and termination contract at that time. It will be necessary for you to know your rights and determine if you have been terminated with or without cause. Severance packages should always be reviewed by a professional before you accept them. If on the other hand, you have only been laid off, then that would be different too. Always talk to an employment lawyer to ensure you never leave any benefits, severance or income on the table.

Now that you are “free,” you can start making a list of what you really want to do with your life. Could this be the time you could pivot your career and go in a different direction? Write down your goals, dreams and the objectives you want to attain. Make a list of the steps you will need to take in order to reach these new aspirations. Do you need more education, training or mentorship? How will you take action to achieve your goals? It is not necessary to develop an elaborate multipage business plan. All you need is a clear and concise plan of action detailed enough to keep you positively motivated to consistently do it, and it needs to be decisive enough to generate positive future results.

Why not attend one of my free presentations provided every month around the country. We’re bringing together keynote speakers, community partners, and experts who can provide practical strategies to help you navigate everything from financial wellness, entrepreneurship and investing, to healthy aging — and I’m doing it at community centres and libraries across Canada. Checkout my website (www.askthemoneylady.ca) to find out when I will be in your area, and how you can register to attend. And don’t forget to come and see me after, I want to meet you!

Christine Ibbotson is a Canadian finance writer, radio host & YouTuber. For more advice check out her YouTube channel: ASK THE MONEY LADY – Your Canadian Finance Coach.