Why Are People In Their 40s Losing Jobs?

'Losing your job in your 40s is a financial and emotional disaster.'
'At this age, you have the most responsibilities -- EMIs, kids' education and aging parents.'
'The question is: How to prepare for the storm ahead?'

Bombay Shaving Company CEO Shantanu Deshpande has highlighted a worrying corporate trend about people above 40 losing their jobs.

'Very few people are talking about people losing their jobs in 40s. And this is a global phenomenon,' Deshpande said on LinkedIn (external link), adding that he was in conversation with Kaushik Mukherjee, co-founder and chief operating officer of Sugar Cosmetics, when this topic came up.

'When mass layoffs happen, the people in their 40s are the most vulnerable because they are the highest paid (in the company). And that is an age which is very vulnerable for multiple reasons,' Deshpande said.

'Losing your job in your 40s is a financial and emotional disaster. At this age, you have the most responsibilities -- EMIs, kids' education and aging parents. The question is: How to prepare for the storm ahead?'

Explaining what life could be like at this stage, Deshpande (*pictured left) said, 'Your children are likely to be in college so you need money a lot more.

'Your parents are in 70s or 80s and probably you will need medical money for them and financial attention that your parents might need.

'You have possibly bought your dream home (by 40s) and have maximum amount of EMIs and you are counting on your job to pay off the EMIs to create a home for yourself.'

Cautioning everyone in their forties, he added, 'You don't have lot of savings because golden salary period which is when you are going to be in senior management in late 40s and 50s is ahead of you. So if you lose your job in the 40s it is massive destabiliser financially and emotionally for you and your family.'

'And I think if it is happening at the rate at which some of the articles are saying, it is a very, very worrying thing. I would love to actually know your thoughts.'

To which a user commented, 'Thanks for highlighting this Shantanu Deshpande.

'I think losing a job is very destabilising if you have liabilities and responsibilities -- age irrespective.

'As someone who has had multiple breaks, and also experienced job losses, I can vouch for the fact that the lack of a safety net can be rather terrifying.

'The only real solution I can think of is having a solid passive income stream that insulates a person from the loss of income after a layoff. But not sure if it will ever match the income from a corporate job though.'

Another user commented, 'Globally, skill and performance matter, not age. But, in India, we still hold on to outdated ideas. People are being forced out simply because they've crossed a certain age. They are being replaced with younger, cheaper resources expected to work endless hours. Sometimes, even interns are hired on hourly pay.

'This really needs to be a wake-up call. We're sidelining the very people who can bring maturity, consistency and real growth. In the rush for valuation, we're losing the backbone of sustainable business. And honestly that should scare us all a little.'

*Shantanu Deshpande's photograph: Kind courtesy The BarberShop With Shantanu/Instagram