First, Take a Breath
Being laid off is one of life's most stressful experiences. It's normal to feel shock, anger, grief, or anxiety. This guide gives you a structured plan so you don't have to figure everything out while you're processing difficult emotions. One day at a time.
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Recommended First Week Essentials
Day 0: Layoff Day
Critical actions before you leave the building (or Zoom call)
Before You Sign Anything
- Don't sign your severance agreement immediately. You typically have 21 days (45 if over 40) to review. Take the time.
- Ask for everything in writing: severance terms, last day, benefits end date
- Request an extended deadline if you feel pressured
Documents to Collect
- Copy of your severance agreement
- Final pay stub and year-to-date earnings
- Benefits summary (health, dental, vision, life insurance)
- 401(k) statements and vesting information
- Stock option or RSU documentation
- Any pending expense reimbursements
- Employment verification letter (request this!)
- Performance reviews and accomplishment records
Before Losing Access
- Export personal contacts from work email/phone
- Save any personal files (nothing confidential!)
- Note key project accomplishments for your resume
- Screenshot LinkedIn recommendations before changing profile
- Get coworker personal contact info (phone, personal email)
What NOT to Do
- Don't badmouth your employer (even if justified)
- Don't take confidential documents or code
- Don't post on social media in anger
- Don't make major financial decisions today
Day 1: Secure Your Finances
Take control of your financial situation
Morning: Financial Assessment
- Calculate your total liquid savings (checking, savings, accessible investments)
- List all monthly expenses (rent, utilities, subscriptions, loans)
- Calculate your "runway" – how many months can you cover expenses?
- Identify expenses you can cut immediately
Afternoon: Immediate Actions
- Cancel unnecessary subscriptions (gym, streaming you don't use)
- Set up a simple budget tracking system
- Review your severance package details carefully
- Check when your last paycheck will arrive
- Verify when benefits coverage ends
Use Our Free Calculator
Our Financial Runway Calculator helps you understand exactly how long your savings will last and what adjustments you might need to make.
Evening: Breathe
You've done the critical financial tasks. Now:
- Cook a real dinner (don't stress-order expensive takeout)
- Talk to a trusted friend or family member
- Get some exercise, even a short walk
- Go to bed at a reasonable hour
Day 2: File for Unemployment
Don't leave money on the table
Why File Today?
Unemployment benefits are not retroactive to before you file. Every day you wait is money lost. Even if you have severance, file now—many states will start benefits after severance ends.
What You'll Need
- Social Security number
- Driver's license or state ID
- Employer name, address, and phone number
- Dates of employment
- Reason for separation (be accurate: "layoff" or "reduction in force")
- Bank account info for direct deposit
Filing Steps
- Visit your state's unemployment website (find yours at our state guide)
- Create an account
- Complete the initial application (takes 30-60 minutes)
- Note any required follow-up actions
- Set a weekly reminder to certify for benefits
Remote Workers: File in the Right State
Generally file in the state where you physically worked. Check your W-2 to see which state your employer paid unemployment taxes to. See our Remote Worker Guide for details.
Day 3: Health Insurance Decisions
Protect yourself and your family
Understand Your Options
- COBRA: Continue your current plan (expensive, but same coverage)
- ACA Marketplace: Shop for new coverage (may be cheaper with subsidies)
- Spouse's plan: Join during special enrollment period
- Medicaid: If income drops enough, you may qualify
Key Deadlines
- COBRA: 60 days to elect from when you receive notice
- ACA: 60 days from loss of coverage (special enrollment period)
- Spouse's plan: 30 days typically for life event enrollment
Today's Actions
- Note when your current coverage ends
- Get a COBRA quote from your HR or benefits admin
- Visit HealthCare.gov to compare ACA plans and subsidies
- Check if your spouse's employer offers coverage
- List any ongoing prescriptions or scheduled procedures
Don't Rush This Decision
You have 60 days for most options. Take time to compare costs and coverage. Use our COBRA vs. ACA Guide for a detailed comparison.
Day 4: Update Your Professional Brand
Get ready to be found by recruiters
LinkedIn Updates
- Update your headline to signal you're open (e.g., "Senior Product Manager | Open to New Opportunities")
- Turn on "Open to Work" (choose visible to recruiters only or everyone)
- Update your "About" section with what you're looking for
- Add recent accomplishments to your experience
- Request recommendations from former colleagues (do this now while fresh)
Resume Refresh
- Update with your most recent role and accomplishments
- Quantify achievements where possible (%, $, #)
- Ensure contact info is current
- Create a clean PDF version
- Have a friend proofread for typos
Don't Announce Your Layoff Publicly Yet
Wait until you've processed the news and can write a positive, forward-looking message. Angry or bitter posts hurt your job search. When ready, focus on gratitude and excitement for what's next.
Day 5: Activate Your Network
Your network is your most valuable asset
Prioritize Your Contacts
- Tier 1: Close contacts who will actively help (former managers, close colleagues)
- Tier 2: Professional acquaintances who might have leads
- Tier 3: Broader network for informational conversations
Outreach Strategy
- Reach out to 5-10 Tier 1 contacts personally (phone, text, or personal email)
- Be specific about what you're looking for
- Ask for introductions, not just job leads
- Offer to help them too—networking is two-way
Sample Message
Days 6-7: Rest and Plan Ahead
Recharge and set yourself up for the weeks ahead
Saturday: Rest and Reflect
- Sleep in if you need to
- Do something you enjoy that's not job-related
- Spend time with family or friends
- Exercise or get outdoors
- Start journaling about what you want in your next role
Sunday: Plan Your Job Search
- Set up a job search tracking system (spreadsheet or tool)
- Create a daily/weekly schedule for your search
- Research target companies
- Set up job alerts on LinkedIn, Indeed, and industry sites
- Plan your first week of active job searching
It's Okay to Not Be Okay
Job loss is emotionally difficult. If you're struggling, that's normal. Consider:
- Talking to a therapist (many offer sliding scale fees)
- Joining a job seeker support group
- Maintaining routines like exercise and sleep
- Limiting news and social media if it increases anxiety
Week 1 Complete Checklist
- Collected all documents from employer
- Reviewed (not signed) severance agreement
- Calculated financial runway
- Filed for unemployment
- Researched health insurance options
- Updated LinkedIn and resume
- Reached out to 5-10 close contacts
- Created job search tracking system
- Set up job alerts
- Scheduled Week 2 priorities
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