'Never quit your job': Self-made multimillionaire lists benefits of engineering a layoff instead

Sam Dogen is a former banker and founder of Financial Samurai. (Image credit: Financial Samurai, Unsplash)

Sam Dogen is the millionaire founder of Financial Samurai, a personal finance site with roughly one million organic visitors a month. He has some advice for professionals wanting to resign: "Never quit your job. Get laid off."

The 47-year-old former banker, who has been a stay-at-home dad since 2012 and made a passive income of about $380,000 (over Rs 3 crore) by 2023 through a mix of stocks, bonds, real estate, and other investments, said there are more benefits in engineering a layoff than quitting.

That’s what Dogen did more than a decade ago. Instead of quitting, he orchestrated a layoff that netted him three months of his base salary plus a low six-figure severance check. That money, combined with the $80,000 (Rs 67.3 lakh) a year he was earning in passive income at the time, allowed him to retire early.

Speaking to CNBC Make It, Dogen shared a couple of tips for professionals to help them negotiate a layoff if they are considering leaving their jobs.

Start by letting the right people know that you are unhappy with your current role, Dogen said. “You basically have to talk to HR or talk to your direct supervisor, say, ‘I’m not happy here, I’d like to make some changes,’” he said. “Ultimately, I’d like to leave if these changes are not met.”

In case the company isn't ready to meet your demands, Dogen suggested pivoting the conversation toward the possibility of you quitting while offering to stay until a replacement is hired to ease the transition. But remember to bring up the matter of a severance package, he said.

Dogen told CNBC Make It that he had stayed with his last employer for two months after having this conversation with his boss in 2012. He then used that time to train his junior hire.

If you’re willing to do something similar, “more often than not, your employer will work with you -- especially if you’re a better than average employee,” Dogen said.