The Economic Downturn Finally Hit Home

I’ll admit that I’ve been a terribly infrequent blogger, but it’s really hard to stay motivated when Google thinks you’re the devil and stops sending you traffic.

I’ve accepted that this blog isn’t going to make me internet famous, so now I just post when I feel like I have news to share with my dedicated internet and real-life acquaintances.

Anywho, onto the subject at hand:

The past few weeks have been trying times.

First, in early November, two of my coworkers were laid off without any advance notice. There were only 9 people in the company, so two people was a huge deal. On the day of the layoffs, I was the only other person in the office besides the two owners. It was spooky, but they took me out for sushi and promised everything was going to be fine. With the layoffs, they said, we’d be saving tens of thousands of dollars in salary and benefits and we’d be okay.

Flash forward to the Tuesday before Thanksgiving: The boss sent out an email to the remaining 5 underlings. He couldn’t afford to keep us all salaried. Effective December 1 we’d all become pay-by-the-hour contractors. Happy holidays, indeed.

Later the boss called a meeting. He explained how the new system would work. We could telecommute 100% of the time. We’d earn our salaries minus three 0’s as our new hourly rate, but we’d be responsible for our own taxes. We’d probably eventually have to shoulder a portion of our health insurance. No more 401(k) match.

He’d understand if we needed to find new jobs, he said. But of course, it’s vital to the company’s success that we all stay on. And he promised he intends to hire each of us back, in order of seniority.

Tomorrow marks the end of the second week of life as a contractor. So far, the company has only given me 2 billable hours of work. Less than $100 before taxes. Much less than $100 after taxes. In two weeks.

And I went to CVS only to learn that my $15 prescription now costs $110. Turns out someone at the office forgot? didn’t pay the health insurance bill.

Luckily, a few weeks before, a friend had introduced me to the founder of a new environmental website start-up who needed a freelancer. I’ve been working with her doing some web design and consulting work. The extra money definitely helps, but it’s not enough to live on. She’d like to hire me as a full-time employee, but they don’t have funding yet. (They’ve been operating out of the founder’s McMansion to save money. It’s actually a lot of fun. )

So essentially it’s been two weeks without a real paycheck. How long do I wait, hoping that business turns around? I have an emergency fund (thank god)—but do I want to drain my emergency betting on someone else’s business? I don’t think I do. It’s not like I have equity in the company.

So I’ve decided: I’m looking for another full-time job. In the meantime I’ll keep on contracting and freelancing whenever possible.

But now what the hell do I want to do?

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4 Responses to “The Economic Downturn Finally Hit Home”


  1. 1 joe c

    I’m so sorry to hear this. My boss had a talk with me today about how we lost a big client and another is losing HIS biggest client (a new team is pushing out the old team he was working with) so it sounds like 2009 may be our last unless something new comes in.

    Sigh. Nothing like experiencing the downturn first hand to get you to really take it seriously.

  2. 2 Monica

    Good Luck, hon. It looks like you are starting your next steps, good for you!

    Consider yourself BLESSED that you have an emergency fund.

    Isn’t freelancing fun? (being totally sarcastic here) I mean, I’m sure its fun for some people, but when you only get 2 hours of work…. and your bills keep coming, freelancing just isn’t fun.

    Whatever happened with your meds? Does you health insurance even work anymore?

  3. 3 AJ

    freelancing has been better to me than my old full-time gig… in every way except for the uncertainty. “Will this last? Will I get paid this week?”

    the health insurance situation is effed up. I’ll explain more later if it ever gets sorted out.

  1. 1 Hello 2009, Goodbye Health Insurance | the Guppie Life

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