Pink Slips: First You, Then the Help

Jan. 14, 2009 — -- When Robert Morey, 43, was laid off in May from his $90,000-a-year wine industry sales job, he wasn't terribly worried about making ends meet. His severance package would carry him through September, and he had reserves in his checking account and stock he could sell if need be.

But by late November, the economic headlines had become increasingly gloomy. Worse yet, the Napa, Calif., resident hadn't been able to find comparable work and his stocks had become next to worthless.

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Like many Americans, Morey (who's now down to his last three unemployment checks and says he doesn't "have much of a fail-safe at this point") started slashing his budget: nixing Netflix, turning down the heat, skimping on holiday gifts, finding cheaper car insurance, trading sushi out for dinners in and putting the kibosh on his adolescent daughters' shopping sprees.

In an effort to save an extra $180 a month, he also passed along the pink slip he'd received, laying off his house cleaner of five years.

It was not an easy decision.

"Her daughter is my older daughter's best friend," Morey said. "The girls have been friends since they were 1 year old, and they are now 13. So it was difficult to tell her that I wouldn't be able to use her services anymore."

Morey did his best to give the woman as much notice as possible.

"It didn't come as a surprise," he said. "But since she has lost some other clients in the past few months, it didn't help."