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High technology industry

Financial Readiness in the Face of Layoffs: Expert Advice for IT Professionals

Strategic Insights

— 1 min read

The recent trend of job cuts at Indian IT giants and global majors has left thousands of employees anxious about their financial future. To prepare for unexpected layoffs, experts recommend building a 12-month emergency fund, which, according to Adhil Shetty, CEO of BankBazaar.com, can be achieved by allocating a portion of current income towards savings each month. The goal is to keep the money liquid yet protected from inflation, making it easily accessible when needed.

Key Takeaways:

  • Adhil Shetty recommends allocating a portion of current income towards building a 12-month emergency fund, but emphasizes that there is no fixed rule for how much to save, as it depends on individual income, expenses, and financial goals.
  • To supplement salary, consider keeping money in an auto-sweep account, liquid funds, or laddering fixed deposits with different maturity dates to ensure regular access to cash.
  • Focus on repaying high-value loans first and try to keep total borrowings low to ensure easier access to credit if situation changes.
  • Prepay loans when possible, but prioritize important investments over debt repayment, and avoid using emergency funds for loan repayment.
  • Consider investing in monthly interest FDs, liquid funds, or systematic withdrawal plans (SWPs) to generate steady income and maintain liquidity.
  • Continue Systematic Investment Plans (SIPs) only if they don't compromise essential expenses.
  • Exploring rental income can support cash flow, but may not be a steady source of income.
  • Get personal health cover if employer policy ends.
  • Cut down on non-essential expenses, avoid taking new loans, and preserve capital.

Statistics:

  • Over 12,000 job cuts have been approved internally at Tata Consultancy Services (TCS) for FY26, sparking anxiety among employees.
  • The tech industry has witnessed recent job cuts at companies including Intel, Microsoft, Google, IMBM, Infosys, and other global majors.
  • According to experts, building a 12-month emergency fund is crucial for financial readiness in uncertain job scenarios.
  • Allocating a portion of current income towards savings can help build this fund over time.

Sources:

  • Shetty, Adhil. CEO of BankBazaar.com.
  • Contify.com, Copyright 2025 IE Online Media Services Pvt. Ltd.

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