Freelance Layoff: Major Client Cuts Back
June 9, 2009 by Miranda Marquit
Filed under Finance
Some of you might be aware that I have a Major Client. This Major Client accounts for about 1/3 of my monthly income from my freelance writing business. However, what I’ve been 
suspecting might be coming for a couple months has finally arrived. My Major Client is cutting back rather dramatically. Although it’s better than I thought it would be; I thought I’d get dumped altogether. However, instead of doing that, they’re cutting me down to 45% of my current load. That’s a pretty substantial cut, though, from this Major Client.
I am fortunate in that this client pays a month ahead of time (due to the fact that the amounts of money involved are reasonably significant). I’ve been paid for this month’s work already, and the new contract takes effect July 1. So I have a little time to prepare for what I consider a freelance layoff. Here is what I have in terms of financial support during this time:
- Some savings to help cover costs, if necessary.
- We don’t spend all of our income each month, so there is a financial buffer.
- We have close to 6 months of food storage if it becomes necessary to economize by cutting back dramatically on the grocery bill.
- My parents are usually willing to provide a loan, and since their jobs are secure, it would be a last ditch effort. But better than using credit. My parents don’t charge interest.
What I plan to do in order to replace the lost income (or at least not add additional strain to our budget):
- Reduce the amount of sod for our yard. We’ll sod only the front and seed the back yard to save money. (Happily, the yard has already been budgeted in and is mostly paid for.)
- Look for new writing gigs.
- Write for a few paid content sites until things firm up. (I don’t particularly enjoy doing this — it’s like when I first graduated from college to be a…cashier. But you do what you have to do.)
I feel blessed, though. A lot of people do not have the luxury of nearly 22 days to prepare for a dramatic drop in income.
What would you do if you were faced with a drop in income?
image source: Esther_G via Flickr
Sorry to hear about this, Miranda. It makes life just that much more complicated, but it is the life of a freelancer. Sometimes it rains, sometimes not. I have often thought about this, and I have a list of projects I want to work on – the “someday” file. If my major source of writing income dried up, I would look at it as an opportunity to get busy on some of these things.
Good luck! I’m sure you will land on your feet.
Thanks for your kind words, Jean! I’ve got projects as well, but I can’t work on them just yet — I’m still the primary breadwinner! As soon as my husband gets done with school, though, and gets a job, I’ll be able to cut back and do some other things.
Sorry to hear about that. :(
My wife just found out last week that she’s likely getting laid off in July due to Illinois budget cuts.
“But you do what you have to do.”
That about sums up our response also. (As well as how we responded when I was laid off in 2007 due to a merger.)
I’m sorry that you will be affected as well. It’s kind of a pain. But, on the other hand, new opportunities often open up, so I’m looking forward to that.