What to Do If You Get Laid Off

Being laid off is disorienting, even when you see it coming. The decisions you make in the first few days matter. Here's what to do, in order.

In the First 48 Hours

Negotiate your severance. Severance is often negotiable, especially if you're being asked to sign a separation agreement. Don't sign anything immediately — you typically have 21 days to review (45 days if it's a group layoff in the US). Consider asking for:

More weeks of severance
Extended health insurance coverage
Accelerated vesting of equity
A positive reference letter in writing

Get everything in writing. Ask for your termination letter, severance offer, and any agreements in written form before you leave.

Keep copies of your work. Back up your personal files, contacts, and anything else you're entitled to keep. Once system access is cut, it's gone.

Don't say anything you'll regret. Whatever you feel, stay professional with managers and HR. Your professional reputation follows you.

In the First Week

File for unemployment benefits. Do this immediately — waiting costs you money. In the US, file with your state's unemployment office. Benefits typically replace 40–50% of your income up to a cap. Most states have a 1-week waiting period, so filing fast matters.

Review your finances. Look at your runway:

How many months of essential expenses do your savings cover?
What's the minimum you need per month to cover rent, food, and bills?
What subscriptions and non-essentials can you pause?

Knowing your number removes the panic. If you have 3+ months of runway, you have real breathing room.

Sort out health insurance. In the US, you typically have COBRA coverage available — you keep your existing plan but pay the full premium yourself (often expensive). Compare it against marketplace plans at healthcare.gov. You have a 60-day special enrollment window after job loss.

Update your LinkedIn. You don't need to post about the layoff. Just make sure your profile is current and set "Open to Work" (visible only to recruiters, not your entire network, if you prefer).

In the First Month

Tell your network. Most jobs come through people, not job boards. Let trusted colleagues, former managers, and professional contacts know you're looking. You don't need to explain in detail — "I was part of a layoff and I'm exploring new opportunities" is enough.

Request references now. Ask former managers and colleagues while you're all still in recent contact. It's much easier to ask now than 6 months later.

Get organised on your job search. Treat searching like a job itself:

Set a daily goal (applications, outreach, conversations)
Track what you've applied to and where you're at in each process
Follow up — once after a week of silence is appropriate

Update your resume. Tailor it to the roles you're targeting, not a generic document. Lead with accomplishments, not job descriptions.

What Not to Do

Don't make major financial decisions under panic — no big purchases, no pulling retirement funds
Don't rush into the first offer — unless your runway is very short, take time to find the right role
Don't isolate — being laid off affects mental health. Stay connected, keep a structure to your days, exercise

The Practical Reality

Most people find new employment within 2–4 months. The first few weeks feel the worst. Getting into a productive daily routine — applications, networking, skill-building — helps both practically and psychologically.

A layoff is common, not a reflection of your worth. Most hiring managers understand it immediately.