How to Overcome Retrenchment: Tips on Surviving a Layoff

You’ve listened to the news, there have been whispers about it in the workplace, and finally, you hear confirmation: your company is retrenching its workforce, which includes you.

Retrenchment is a challenging and confusing situation for anyone, whatever their career stage. However, it is, unfortunately, becoming an increasingly common option for companies struggling to stay profitable in this sluggish economy. According to Minister of Manpower Tan See Leng, tech companies in Singapore have laid off 1,270 resident workers from July to Mid-November. This number, tallying fewer than five months, has already surpassed the country's annual average of 790 resident workers laid off from June 2017 to June 2022.

Homegrown Shopee shocked the public after it laid off its workers for a third time this year and withdrew job offers in Singapore. The e-commerce giant let go of over 7,000 employees worldwide. Meanwhile, over 50 Singapore-based Meta workers were not spared from the axe since the company laid off 13% of its global workforce in November. Moreover, around 1,300 Singapore-based employees of Indonesian startup GoTo, the parent company of GoJek, also lost their jobs. But we understand that even if you were expecting retrenchment or it blindsided you, it’s still a challenge to overcome. 

What Is Retrenchment?

Retrenchment happens when a company terminates a permanent or contract employee’s (minimum six-month term) employment due to redundancy or restructuring.

While retrenchment is ultimately a business decision that allows a company to cut costs during a difficult period, such as an economic downturn, employers are encouraged to do so in a way that is fair and sensitive to employees. Retrenchment must be considered a last resort, after other options, such as reassigning employees to other roles or engaging them in part-time work.

If retrenchment is inevitable, employers must provide extended notice to employees longer than the contractual notice period to allow them enough time to look for new prospects. 

The challenges of getting retrenched include the following:

• Getting distressed over suddenly losing a job
• Worrying about your or your family’s financial situation
• Having to deal with the shock of job loss while pressured by the need to find work immediately

What is the difference between a retrenchment and a layoff?

Generally, people use retrenchments and layoffs interchangeably. According to the Ministry of Manpower, retrenchment entails the employer having no plans to fill the vacancy shortly (as in the case of restructured organisations where some roles have been deemed redundant). However, a layoff is less definite. It refers to letting go of employees for reasons unrelated to their performance, but it may be permanent or temporary.

Do I Have Any Rights as a Retrenched Employee?

A retrenched employee does have rights. According to MOM, employees who have served the company for at least two years are eligible for a retrenchment benefit. However, the amount depends on your contract or a collective agreement in the case of unionised companies. 

Employees who have worked with a company for less than that time are not eligible for a retrenchment benefit.

How to Cope With Job Loss After Being Retrenched

Being retrenched from a job, especially one you enjoyed or excelled in, can be dismaying. However, you should cope with it the way you deal with heartbreak: pick up the pieces and move on. Here are ways you can deal with your emotions and get raring again.

Don’t burn bridges.

Do not leave the company on a bad note. While your feelings are valid, bad-mouthing the organisation or your colleagues will not benefit you. It could backfire later, probably during a crucial point in your career. 

Instead, take this chance to leverage your good standing with the company. Negotiate for more severance benefits, get access to their network to connect to other job opportunities, bargain for more health benefits, or request a solid recommendation so you can get hired quickly.

Indulge in self-care.

Perhaps it was a sign for you to take it easy and #SEEKBetter opportunities. If you can afford it, take the time to pamper yourself with some self-care practices. A little self-love gives you time to do things that make you feel good physically and mentally. It's a quick antidote during a potentially distressing time, such as being retrenched. Soothe yourself and further reduce stress and anxiety – get a massage, practise your skincare routine, get some exercise, or do a relaxing activity. You could finally take the cooking class you never had time to sign up for or go on a holiday.

Consider taking on a mentor.

Whether you're a rookie or an executive, getting laid off can still be a rattling experience. Perhaps you can use this time to find a mentor who can help view your situation more objectively and counsel you on the things that matter based on their experiences. A listening ear and someone who understands you can help you get back on your feet faster.

Be honest about your emotions.

Allow yourself to grieve your loss, especially if you committed yourself to your work intensely. Don’t put off an emotion or repress it because it can only get worse. In psychology, it is called emotional avoidance. Ignoring negative emotions makes you feel better temporarily as it helps you dismiss the feeling, but it makes whatever you were avoiding bigger in the long term.

Not dealing with your current feelings can cause your frustrations to pile up and lead you to make unhealthy decisions. Unresolved emotions can even get in the way of your real goals, as you could spend more time feeling bad about your situation rather than being proactive. 

Seek out someone you trust and someone who supports you so you can confide in them (mentors will definitely benefit you in this case). If your retrenchment has affected you much more than you realise, then it may also be good to seek professional help. Talking about your feelings can help you process them better.

Adopt the right attitude.

You would understandably worry about your financial stability after retrenchment. It could even tempt you to accept the first job that comes your way without much thought over pay or benefits.

While it can solve short-term issues, gunning for a job that does not exactly pay off in terms of salary and even fulfilment is not productive for you in the long run.

Know your worth, and believe there is the right job for you. Take this time to review your strengths, skills, and interests, and find a career that manages to address those. Once you’re ready, update your profile on JobStreet and #SEEKBetter opportunities that align with your interests and aspirations.

Get productive.

When you’ve identified your strengths and career interests, you must be honest with yourself: what skills could you still improve? What would make you more effective and competitive in the workplace? 

It’s time to get productive. While in between jobs, use this downtime to upskill and pick up new technical or transferable skills that allow you to become more versatile and competitive in the workplace. Future-proof your capabilities by signing up for a class, or getting a degree or certification to help you acquire these market-ready capabilities.

Shift your perspective.

While it may be difficult, you can reframe this as an opportunity. Shift your perspective towards new doors this retrenchment may open. Did you feel like you had skills that weren’t utilised? Have you been wanting to try new things? Did you lack any growth opportunities?

Your new job may help you address these and more, not just your salary. It could be an opportunity to find a rewarding job and career that allows you to have a sustainable work-life balance.

You can even mention that in your interview with a prospective employer – especially if you genuinely like the organisation. Briefly discuss the retrenchment (you must be transparent about this, especially since it wasn’t a lack of skill in your part) but mention that it became an opportunity for you to re-evaluate what you value in your career. Then play up your strengths and what you bring to the table.

Don’t rush through a decision.

When you just got laid off, you may panic and think that opportunities are closing in. It may cause you to make your next decisions quickly and haphazardly.

Yet making the right decision means being able to weigh what you have currently, and how much you can dial back to make way for a job that suits you. Do you have any savings? Are there any expenses you can cut back on at the moment? Are you providing for your family? What did your financial planning look like before the retrenchment?

Answering these questions can help you make a more sound decision.

Retrenchment can be frustrating – but this, too, shall pass. All it takes is the right perspective and the will to not settle for anything less. Make the job hunt for your next career move easier by updating your JobStreet profile and downloading our app on App Store and Google Play. For more expert advice on how to bounce back after retrenchment, visit the Career Resources page.