3 Tips to Survive a Retrenchment

This is probably some old news you may have read a few days ago. Starhub will be retrenching 300 full time employees as part of a S$25 million restructuring exercise. This has brought back some of my bad memories. Believe or not, I was once retrenched and it came unexpected. I am not going to write about the impact of the retrenchment on the share price of Starhub, but to share my past retrenchment experience and how I learnt about the importance of having an emergency fund.

Believe it or not, I didn’t know and neither was I interested in stock investing in my younger days. I believed if I work hard and deliver results in the company I am working for, I will be rewarded. The company that I was working for was doing very well until one day, the retrenchment came unexpected. The management did not explained to us what was the rationale for the retrenchment. We were told to pack our personal stuff and leave the office immediately. There was no negotiation on the compensation and was briefly informed that the compensation will be credited into our salary banking account when it is ready.

Yes, this is how cruel and relentless the society is. I just got married, bought my house and have bills to pay. Being young and without much savings, I can only last 3 months without a job. Believe it or not, I scrimp and spent only $4 a day on meals. I was lucky to find job in the 4th month.

Six years have passed and here are the lessons that I have learnt from the retrenchment. Read More