NY, I can relate to what you are dealing with. I went through the same thing at my company (where I'd worked since '85) in the years from 2001-2010, as I watched many friends, colleagues, and even my husband be laid off as the market contracted and the company became mired in financial (and eventually even criminal) struggles. I managed to hang on until I was ready to resign (early retire, but not with any kind of package) in 2010.
Over the years, I had a lot of sadness and survivor's guilt after lasting so long, while so many others (some much more talented than I, but in a more vulnerable part of the company, or a product line that got canceled) were let go. It was hard. I was worried about being laid off many times as rumors swirled. I too worked on a mature product, and my software skills were old-school compared to all the computer sci grads in the '00s, and even the 1990s. Fortunately, our product was high quality, and we had a strong customer base who wanted to retain their investment, so those of us who knew the "old stuff" were spared for a much longer time than some of the newer folks with the more marketable, in-demand skills.
As it turned out, it was good that I left when I did, as 8 months afterwards, my manager and most of my co-workers were finally let go. I was very fortunate to be able to afford to retire and not have to go back to school or figure out how to freshen my skills otherwise to continue working in software development. I have missed my co-workers and the comraderie, but never the work nor the office politics, nor someone else controlling my destiny, in the ensuing 7 years.
I hope you will land on your feet no matter what happens. You do need to prepare for the worst and plan your exit plan whether you get laid off or leave voluntarily at some point. And if you are able to stay there and the situation rights itself, then at least you'll be able to sleep at night knowing you have your ducks in a row. Please keep us posted!
Emily
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