Hedging labor income risk in the financial markets

Layoffs at tech companies underscore that labor income is risky. A company is more likely to cut compensation and fire people when its stock price has fallen, and options and stock grants are worth less. If you work for a tech company, some ways to hedge labor income risk are to short the stock of the company, buy put options on the stock, or short or buy put options on a tech sector ETF such as XLK. (Higher-level employees may not be allowed to short the stock of their company. Can junior employees do so?) There are 11 Sector SPDR ETFs. Instead of buying SPY, which tracks the S&P 500 and owns all sectors, you could buy all except XLK.

Has anyone tried to hedge career risk in the financial markets? If so, what instruments did you use, and how did you determine sizing?