'It’s not if, it’s when...': CA warns emergency funds are now non-negotiable amid job losses
He advised employees to build a financial buffer covering at least 12 months of expenses, explaining that senior-level professionals typically take 6-9 months to secure a new role after being laid off, and during recessions or slowdowns, the wait could be longer.
- Aug 25, 2025,
- Updated Aug 25, 2025 2:37 PM IST
Amid growing uncertainty in the global job market, Chartered Accountant Nitin Kaushik has urged salaried professionals to prepare for the unexpected by creating a robust emergency fund.
In a post on X (formerly Twitter), Kaushik wrote, “The harsh truth every salaried person must hear: the job market is not what it used to be. Layoffs, pay cuts, hiring freezes — it’s not about if, it’s about when.”
He advised employees to build a financial buffer covering at least 12 months of expenses, explaining that senior-level professionals typically take 6-9 months to secure a new role after being laid off, and during recessions or slowdowns, the wait could be longer.
Kaushik suggested splitting the fund for both safety and accessibility:
- 50% in high-yield savings accounts or liquid funds for easy withdrawal.
- 50% in ultra-safe short-term debt instruments such as fixed deposits or treasury bills.
“Salary gives stability, but an emergency fund gives freedom to breathe,” Kaushik added, cautioning workers not to wait for a pink slip before acting.
Layoffs Intensify in India and globally
Kaushik’s advice comes at a time when job cuts are accelerating across industries. In India, IT giant Tata Consultancy Services (TCS) has announced layoffs of around 12,000 employees, largely affecting mid- and senior-level roles, while software major Oracle has reportedly let go of nearly 10% of its India workforce, impacting thousands of jobs.
Globally, the tech sector continues to reel under restructuring pressures. Since the start of 2025, more than 22,000 tech workers have been laid off, with major corporations such as Microsoft, Intel, and TCS making significant cuts as part of their shift towards AI-driven operations.
Industry analysts warn that such trends underline the importance of financial preparedness — echoing Kaushik’s call for workers to build a strong safety net before uncertainty strikes.
Amid growing uncertainty in the global job market, Chartered Accountant Nitin Kaushik has urged salaried professionals to prepare for the unexpected by creating a robust emergency fund.
In a post on X (formerly Twitter), Kaushik wrote, “The harsh truth every salaried person must hear: the job market is not what it used to be. Layoffs, pay cuts, hiring freezes — it’s not about if, it’s about when.”
He advised employees to build a financial buffer covering at least 12 months of expenses, explaining that senior-level professionals typically take 6-9 months to secure a new role after being laid off, and during recessions or slowdowns, the wait could be longer.
Kaushik suggested splitting the fund for both safety and accessibility:
- 50% in high-yield savings accounts or liquid funds for easy withdrawal.
- 50% in ultra-safe short-term debt instruments such as fixed deposits or treasury bills.
“Salary gives stability, but an emergency fund gives freedom to breathe,” Kaushik added, cautioning workers not to wait for a pink slip before acting.
Layoffs Intensify in India and globally
Kaushik’s advice comes at a time when job cuts are accelerating across industries. In India, IT giant Tata Consultancy Services (TCS) has announced layoffs of around 12,000 employees, largely affecting mid- and senior-level roles, while software major Oracle has reportedly let go of nearly 10% of its India workforce, impacting thousands of jobs.
Globally, the tech sector continues to reel under restructuring pressures. Since the start of 2025, more than 22,000 tech workers have been laid off, with major corporations such as Microsoft, Intel, and TCS making significant cuts as part of their shift towards AI-driven operations.
Industry analysts warn that such trends underline the importance of financial preparedness — echoing Kaushik’s call for workers to build a strong safety net before uncertainty strikes.