My company has merged with another and I’ve just been told that my role will be eliminated next year

Most layoffs come as a surprise, but in some circumstances, you learn in advance that your job will soon be ending. This could happen for many reasons, including a business closing an office location, or a merger.

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Don’t miss How to prepare for an upcoming layoff How to prepare financially for a layoff How to prepare emotionally for leaving your job What to read next

Say, for example, that you’ve been with a company for many years, but the business has now merged and you’ve been selected to be part of a one-year transition team with the new entity. However, your job is likely going to be eliminated at the end of that year, which means you’ll have to figure out what to do next.

Knowing in advance that a layoff is coming is a huge benefit because you have time to prepare. Of course, you need to decide what to do next. Paying off as much debt as possible can be an obvious first step, but there are also other steps you should take to be as prepared as you can for the day your paychecks come to an end.

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How to prepare for an upcoming layoff

When you have a year until your job comes to an end, you have plenty of time to both set yourself up for your next opportunity and get your finances in order so you’ll be stable if you don’t have a paycheck for a while.

Ideally, the best way to protect your financial security would be to find a new job before your old one comes to an end. Unless you have a contractual obligation to stay with your current company, there’s little reason you should sit tight for a year and wait to be let go.

Instead, you should start looking for new career opportunities as soon as possible. You may be able to line up a new role long before you’re actually laid off so you won’t have a period of unemployment.

If you don’t want your current employer to know you’re job hunting, you can avoid publicly posting your resume and instead submit applications directly to companies you are interested in.

You can also work with a recruiter, but check references and resources to make sure they have a reputation for discretion. And let any company you are interviewing with know that you’d prefer the process to be kept confidential.

Be sure not to use company resources as part of your job search, as you may not know if you’re being monitored. Aim to schedule interviews outside your working hours, so your current productivity doesn’t suffer.

There’s also nothing wrong with going to networking events and reaching out to old colleagues and others in your industry. You don’t even have to make clear you’re looking for a job right away — just strengthen your connections so that when the time comes, you’ll be top of mind. An established relationship with people who may be able to help you find your next role can make all the difference to your job hunt.

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How to prepare financially for a layoff

Ideally, you’ll be able to avoid a gap in your employment if you start job hunting early. If you can’t find a new position in time, however, or don’t want to look until you’re actually laid off, there are steps you can take to shore up your finances so you’re ready for a layoff. This includes:

Assess your financial picture: See where you stand in terms of debt and savings and calculate how long you can go without earning income.
Negotiate a strong severance package: Review the terms carefully so you’ll understand what you’ll walk away with and whether you’ll get any continued benefits.
Create a new budget: Save as much as you can for your period of unemployment and during the time you’re unemployed.
Boost your emergency savings: A strong fund will see you through until your new paychecks start coming in.
Transition your employer-sponsored retirement account: If you have a 401(k) at work, you may want to roll it over into an IRA when you leave.
Pay off as much debt as possible: Remove as many financial obligations as possible for when you no longer have a paycheck.
Research health insurance: In case you don’t want to stay on your employer’s plan, you’ll need to find a lower-cost option for your coverage.

Taking these steps early on will help to ensure a layoff doesn’t do long-term damage to your finances by causing you to go into debt or become unable to cover the bills.

How to prepare emotionally for leaving your job

Finally, you need to make sure you are as emotionally prepared as possible for the loss of your job, especially if you have been with the company for a long time and it is a big part of your identity.

There are a few things you can do to limit the mental fallout that can come with your career ending.

Create a plan to prioritize self-care, including finding low-cost hobbies that keep you connected to a strong support network.
Look for unemployment support groups in your area, or online forums and groups you can join.
Make a plan to stay in touch with the colleagues who are important in your life.

Since you have a year, you have plenty of time to prepare. Hopefully, you’ll end up in a better position once you’ve left your business and will one day look back on the end of your old job as a turning point that led to a great future. Having the right plans in place before you are laid off can help make that future a reality.