First Week After Layoff: Your Action Plan

You made it through the first 24 hours. The initial shock is fading, and now it's time to get organized. This week is about handling the practical matters so you can focus on your job search with a clear head.

The first week after a layoff can feel overwhelming. You might be experiencing a whirlwind of emotions—anger, fear, relief, confusion, or all of the above. That's completely normal. The key is to channel that energy into productive actions that will set you up for success in the weeks and months ahead.

This guide will walk you through exactly what to do, day by day, so you don't miss any critical deadlines or opportunities. You don't need to be perfect. You just need to make steady progress.

Week 1 Overview

By the end of this week, you should have:

• ✅ Filed for unemployment (if you haven't already)
• ✅ Reviewed your severance package thoroughly
• ✅ Made a health insurance decision
• ✅ Created an emergency budget
• ✅ Started documenting your accomplishments
• ✅ Identified potential references
• ✅ Set up a job search tracking system
• ✅ Made initial updates to your resume and LinkedIn

This might seem like a lot, but we'll break it down into manageable chunks. Remember: you're not applying to 50 jobs this week. You're getting your foundation in place.

Days 2-3: Handle the Essentials

File for Unemployment (If You Haven't)

If you didn't file on Day 1, do it now. Every day you wait is a day longer before you receive benefits. Even if you received a generous severance package, file anyway. Depending on your state's rules, you may still qualify for benefits once your severance period ends, and the application date matters.

What you need:

• Social Security number
• Driver's license or state ID
• Former employer's information (full legal name, address, phone)
• Dates of employment (start and end dates)
• Reason for separation
• Last date worked and last date paid

Common mistakes to avoid:

• Waiting because you're "not sure if you qualify" (file and let them decide)
• Not having your employer's federal identification number (it's often on your W-2)
• Being vague about your reason for separation (use "layoff" or "reduction in force")
• Missing your weekly certification deadlines once approved

Pro tip: Most states allow you to file online, which is faster than calling. Set aside 30-45 minutes when you can focus without interruptions. Keep copies of everything you submit.

Complete Unemployment Filing Guide →

Review Your Severance Agreement

Now that you've had time to breathe, read through your severance offer carefully. Don't just skim it—this is a legal contract that could affect your rights for years to come.

Look for:

Total severance amount and payment schedule

• Is it a lump sum or paid out over time?
• What happens if you find a job before the payments end?
• Are the payments subject to your regular payroll taxes?
• Is there any bonus or commission included?

How long health insurance continues

• Does the company continue paying for coverage?
• For how many months?
• Does this affect when COBRA kicks in?

Non-compete or non-solicitation clauses

• What industries or companies are you restricted from joining?
• For how long?
• In what geographic area?
• Is this even enforceable in your state? (Many states have limits)

Non-disparagement agreements

• Are you prohibited from saying anything negative about the company?
• Are they also prohibited from disparaging you?
• Does this prevent you from leaving honest reviews on Glassdoor or other sites?

What you're releasing

• Typically, you're giving up the right to sue for wrongful termination
• Are you releasing claims you didn't even know you had?
• Is there a carve-out for filing unemployment or EEOC claims?

Deadline to sign

• Federal law gives you at least 21 days to review (45 days if it's a group layoff)
• You also typically have 7 days to revoke after signing
• Don't let anyone pressure you to sign immediately

Red flags:

Overly broad non-compete clauses

• Prevents you from working in your entire industry
• Covers regions where the company doesn't even operate
• Lasts longer than 6-12 months

Pressure to sign quickly

• "We need this back by tomorrow"
• "The offer expires if you don't sign immediately"
• This is often a negotiation tactic

Vague language about what you're giving up

• If you can't understand what you're agreeing to, get help
• Consider having an employment attorney review it (often costs $300-500)

No mutual non-disparagement

• If you can't say anything negative, they shouldn't be able to either

Claw-back provisions

• Requiring you to return severance if you say something they don't like

How to Negotiate Severance →

Understand Your Health Insurance Timeline

Health insurance is one of the most critical—and expensive—issues to resolve. Find out exactly when your coverage ends:

• Last day of the month you were terminated? (common for larger companies)
• Last day of employment? (more common for small companies)
• Extended through severance period?
• Some other date specified in your severance agreement?

Action steps:

1. Call HR or check your severance paperwork to confirm the exact end date
2. Find out if your company is subsidizing COBRA for any period
3. Determine if you have any claims that need to be submitted before coverage ends
4. Refill any prescriptions while you're still covered
5. Schedule any needed appointments before coverage lapses

Then start comparing your options:

COBRA (Consolidated Omnibus Budget Reconciliation Act)

• Same coverage you had while employed
• You pay the full premium (what you and your employer paid combined) plus up to 2% admin fee
• Often costs $600-800/month for individual, $1,500-2,000/month for family
• You have 60 days from coverage end date to elect
• Coverage is retroactive if you elect it
• Strategy: Wait to elect COBRA until you actually need it (if you have a medical emergency in the 60-day window, you can elect retroactively)

ACA Marketplace (Healthcare.gov or state exchange)

• Losing your job is a qualifying event, giving you special enrollment
• Often significantly cheaper than COBRA, especially with subsidies
• Subsidies based on your new (lower) income, not your previous salary
• You must enroll within 60 days of losing coverage
• Coverage typically starts the first of the month after you enroll
• Different provider networks—check that your doctors are in-network

Spouse's or partner's plan

• Also a qualifying event for special enrollment
• Often the most cost-effective option
• Check the enrollment deadline with their HR

Short-term health insurance

• Temporary coverage for healthy people
• Cheaper than COBRA but limited coverage
• Doesn't cover pre-existing conditions
• Not available in all states
• Not a substitute for comprehensive coverage if you have ongoing health needs

COBRA vs ACA Comparison →

Days 3-4: Get Your Finances in Order

Create an Emergency Budget

You need to know exactly how long your money will last. This isn't about inducing panic—it's about making informed decisions. When you know your runway, you can plan appropriately.

Step 1: Calculate your runway

Add up all available funds:

• Checking account balance
• Savings account balance
• Severance pay (calculate after-tax amount—typically 22-37% withheld for federal taxes)
• Expected unemployment benefits (weekly amount × number of weeks you'll likely search)
• Final paycheck, accrued vacation payout, or other payments
• Emergency fund or readily accessible investments
• Tax refund you're expecting
• Any other income sources (side gig, rental income, spouse's income)

Be realistic about taxes: If you got a $20,000 severance, assume you'll net around $13,000-15,000 after federal, state, and payroll taxes.

Step 2: List essential monthly expenses

Housing

• Rent or mortgage payment
• Property taxes (if not in mortgage)
• HOA fees
• Homeowners/renters insurance

Utilities

• Electric
• Gas/heat
• Water/sewer
• Internet (essential for job searching)
• Phone (one line is essential)

Food

• Groceries only (be realistic about current spending)
• Target: $200-400/person/month depending on your area

Health insurance

• COBRA, ACA premium, or other coverage
• Copays and medications

Debt payments

• Minimum credit card payments
• Student loan minimums (check if you can defer)
• Car payment
• Personal loan minimums

Transportation

• Car insurance
• Gas (budget for interviews)
• Public transit passes
• Essential maintenance

Other essentials

• Childcare (if you have kids and need coverage for interviews)
• Pet food and basic vet care
• Minimum toiletries and household supplies

Step 3: Calculate how many months you can cover

Divide your total runway by essential monthly expenses. This is your timeline.

Example:

• Total runway: $25,000
• Monthly essential expenses: $3,500
• Timeline: 7 months

Step 4: Identify cuts

Now look at your non-essential expenses and identify what you can pause or eliminate:

Subscriptions

• Streaming services (Netflix, Hulu, Disney+, etc.)
• Gym membership (use YouTube workout videos or run outside)
• Meal kit services
• Premium app subscriptions
• Music streaming (use free versions)
• Magazine or news subscriptions
• Wine clubs, subscription boxes

Lifestyle expenses

• Dining out (allow yourself one budget-friendly meal out per week for sanity)
• Coffee shops (make it at home)
• Shopping for non-essentials
• Entertainment (movies, concerts, events)
• Travel
• Hobbies with ongoing costs

Services

• Lawn care (DIY temporarily)
• House cleaning
• Premium cable channels
• Car washes (DIY)

Financial products

• Extra insurance you don't need
• Bank accounts with monthly fees

Pro tip: Don't cut everything that brings you joy. Budget $50-100/month for small pleasures that keep you sane. The goal is sustainability, not misery.

Detailed Budget Planning Guide →

Contact Creditors (If Needed)

If money is tight and you're worried about making payments, reach out proactively. Most companies have hardship programs, but you need to ask before you miss payments.

Credit card companies:

• May lower your interest rate temporarily
• Might reduce minimum payments
• Could offer a payment plan
• Some offer forbearance programs

Student loan servicers:

• Federal loans: Apply for deferment or income-driven repayment
• Private loans: Vary by lender, but many offer forbearance
• Don't let them go into default

Mortgage lenders:

• May offer forbearance (pausing payments)
• Could extend loan term to lower payment
• Document everything in writing

Utilities:

• Many have payment assistance programs
• Some states prohibit shutoffs during certain months
• Community assistance programs may help

Script for contacting creditors:

"I'm calling because I was recently laid off and I'm concerned about making my payments while I search for a new job. I've been a customer in good standing for [X] years and I want to stay current. Do you have any hardship programs or payment options available?"

Being proactive protects your credit score and builds goodwill with creditors.

Days 4-5: Prepare for Your Job Search

Document Your Accomplishments

This is one of the most important tasks of the week. While everything is fresh in your mind, write down every accomplishment, project, and win from your recent role. Don't worry about formatting yet—just brain dump.

What to capture:

Projects you led or contributed to

• What was the project?
• What was your specific role?
• Who else was involved?
• What was the outcome?

Metrics and results

• Revenue generated or increased
• Costs reduced or saved
• Growth percentages
• Efficiency improvements
• Time saved
• Quality improvements
• Customer satisfaction increases
• User growth
• Process improvements

Skills you developed

• Technical skills
• Soft skills
• Certifications earned
• Training completed
• New tools or technologies

Problems you solved

• What was the challenge?
• What approach did you take?
• What was the result?

Recognition you received

• Awards or honors
• Promotions
• Positive feedback from clients or customers
• Thank-you emails from leadership
• Performance review highlights

Format using the PAR method:
"Accomplished [X] by doing [Y], resulting in [Z]"

Examples:

• "Reduced customer churn by 15% by implementing a new onboarding process that improved user activation within first week, saving the company an estimated $300K annually"
• "Led cross-functional team of 5 engineers and 2 designers to deliver mobile app 2 weeks ahead of schedule and 10% under budget, resulting in 50K downloads in first month"
• "Generated $500K in new revenue through strategic partnership program with 3 major industry players, expanding market reach by 25%"
• "Streamlined hiring process by implementing ATS system and structured interviews, reducing time-to-hire from 60 to 35 days and improving new hire retention by 20%"
• "Identified and resolved critical security vulnerability before it could be exploited, protecting 100K+ customer records and preventing potential legal liability"

Pro tip: Go through your sent emails, calendar, and any project management tools to jog your memory. Look for:

• Presentation decks you created
• Reports you wrote
• Launches you participated in
• Problems you were asked to solve
• Meetings where you were the key decision-maker

Save all of this in a document. You'll use it for your resume, LinkedIn, cover letters, and interview preparation.

Gather References

Reach out to potential references while relationships are fresh and the quality of your work is top of mind. Don't wait until you need them urgently.

Who to ask:

• Your most recent manager (if you had a good relationship)
• Managers from previous roles
• Colleagues who worked closely with you and can speak to specific skills
• Clients or customers (if appropriate for your industry)
• Cross-functional partners who saw you in action
• Mentors or senior leaders who know your work

How many: Aim for 3-5 solid references who can speak to different aspects of your work.

Script for requesting:

"Hi [Name],

I hope you're doing well. As you may have heard, I was recently laid off from [Company] as part of a workforce reduction. I'm starting my job search and wondered if you'd be comfortable serving as a reference?

I always valued our work together on [specific project], and I think you could speak effectively to my [specific skills like project management, technical abilities, or leadership]. I want to be respectful of your time, so I'd only share your information with opportunities where I'm a serious candidate.

Would you be open to this? I'm happy to provide any information that would be helpful, and I'd give you a heads up before anyone reaches out.

Thanks for considering it!"

What to provide your references:

• Updated resume
• The types of roles you're pursuing
• Key points you'd like them to emphasize
• Heads up when someone might contact them
• Thank you note after they provide a reference

Reference etiquette:

• Always ask permission first
• Give them an easy out if they're not comfortable
• Update them on your search progress
• Let them know when you land something
• Return the favor when you can

Start a Job Search Tracker

Organization is critical for an effective job search. You'll be applying to dozens of positions, having multiple conversations, and following up on various leads. A tracking system prevents you from:

• Applying to the same job twice
• Forgetting to follow up
• Missing interview prep time
• Losing track of contacts
• Missing important deadlines

Create a simple spreadsheet with these columns:

• Company name
• Position title
• Date applied
• Application status (Applied, Phone Screen, Interview Scheduled, etc.)
• Contact person (name and title)
• Contact information (email, LinkedIn)
• Follow-up dates
• Interview dates and times
• Thank you note sent (yes/no)
• Offer details
• Notes (anything relevant about the conversation, company, or role)

Optional advanced tracking:

• Job description URL or saved PDF
• Salary range
• Required skills match (percentage)
• Referral source
• Cover letter customization notes
• Interview questions asked

Pro tip: Use Google Sheets so you can access it anywhere, or use a tool like Notion, Airtable, or Trello if you prefer a different format.

Days 6-7: Begin Your Transition

Update Your Resume (Draft)

Don't aim for perfection yet—just get a working draft that you can refine over the coming weeks. The goal is to have something ready to send if an urgent opportunity arises.

Quick update process:

1. Add your most recent position

• Company name, title, dates
• Brief description of the company if it's not well-known
• 4-6 bullet points of key accomplishments (use your documentation from earlier this week)

2. Review and update each previous position

• Remove outdated or less relevant bullets
• Ensure all accomplishments include metrics
• Check that you're using strong action verbs
• Keep only the most impressive points

3. Update skills section

• Add any new technologies or tools
• Remove outdated skills
• Organize by category if you have many
• Match keywords from job descriptions you're interested in

4. Remove outdated information

• Jobs from 15+ years ago (unless highly relevant)
• Irrelevant early-career positions
• Old technical skills that are no longer used
• Outdated contact information
• Graduation dates if they date you unnecessarily

5. Check formatting

• Consistent font and sizing
• Proper alignment
• No orphaned bullets
• PDF export looks clean
• File name is professional: FirstName_LastName_Resume.pdf

Resume Tips After Layoff →

Review Your LinkedIn

Your LinkedIn profile is often the first impression recruiters have of you. A quick tune-up now will pay dividends.

Quick updates for this week:

Profile completeness check:

• Professional photo (yes, this matters)
• Compelling headline (not just your old job title)
• Custom URL
• Contact information
• Summary/About section
• Complete work history
• Skills section (aim for 15-20 relevant skills)
• Recommendations (at least 2-3)

Update your headline:
Your headline doesn't have to be your last job title. Consider:

• "Product Manager | B2B SaaS | Driving Growth Through User-Centered Solutions"
• "Senior Software Engineer | Python, AWS, Machine Learning"
• "Marketing Leader | Brand Strategy & Digital Growth | Open to New Opportunities"

Turn on "Open to Work":

• Use the "Recruiters only" setting (not visible to everyone)
• Select the types of roles you're interested in
• Choose "Remote," "On-site," or "Hybrid"
• Add preferred locations

Update your current position:
You have a few options for how to show your layoff:

• Update end date to your last day and leave title as-is
• Add a note in the description: "Role eliminated due to company restructuring"
• Or just end-date it and move on—you don't owe an explanation

Pro tip: Don't go radio silent on LinkedIn. The algorithm rewards activity. Comment thoughtfully on posts, share relevant articles, and engage with your network.

LinkedIn Optimization Guide →

Tell Your Inner Circle

You don't have to make a public announcement yet, but telling your close network serves multiple purposes:

• Emotional support
• Potential job leads
• Practice talking about your situation
• Expanding your awareness of opportunities

Who to tell:

Close friends and family

• They care about you and want to help
• They can provide emotional support
• They might know of opportunities
• Get comfortable with your story in a low-stakes environment

Trusted former colleagues

• They know your work quality
• They might be hiring or know who is
• They can serve as references or make introductions
• Many jobs are filled through referrals

Your professional network (selectively)

• Former managers or mentors
• Industry connections
• People you've helped in the past
• Alumni network from your school

Script for reaching out:

"Hi [Name],

I wanted to let you know that I was laid off from [Company] last week as part of a broader workforce reduction. I'm taking a few days to regroup and get organized, but I'll be starting my job search soon.

I'd love to catch up and hear what you've been working on. Would you have time for a quick call this week or next? I'm exploring opportunities in [your field/specialty] and would value your perspective.

Hope you're doing well!"

What NOT to do:

• Post a long, emotional rant on LinkedIn
• Badmouth your former company or manager
• Overshare details about the layoff
• Make people uncomfortable with desperation
• Blast a mass email to your entire contact list

Remember: Most people want to help. They just need to know you're looking and what kind of help would be useful.

What Can Wait Until Next Week

Don't try to do everything this week. You'll burn out and do things poorly. These can wait:

Aggressive job applications

• You're not ready to apply to 50 jobs yet
• Get your materials polished first
• Research companies before applying
• Next week you'll start strategic applications

Posting publicly on LinkedIn about your layoff

• Some people do this effectively, but don't rush it
• Think about your messaging first
• Consider your industry and company culture
• It's okay to never make a public post

Networking events

• You're not ready to walk into a room full of people and tell your story 50 times
• Get comfortable with your narrative first
• Focus on one-on-one conversations this week

Informational interviews

• These are valuable but time-intensive
• You need to be prepared to make a good impression
• Wait until you've refined your pitch

Skill-building courses

• Yes, you might need to learn new skills
• But this week is about getting organized
• Learning comes later once you've identified gaps

Self-Care This Week

Job loss is one of life's most stressful events, ranking up there with divorce and death of a loved one. Taking care of yourself isn't selfish—it's necessary for a successful job search.

Sleep

• Maintain a regular sleep schedule (yes, even though you don't have to wake up for work)
• Avoid sleeping until noon or staying up until 3am
• Aim for 7-9 hours
• Your bedroom is for sleep, not job searching at 2am

Eating

• Don't skip meals
• Resist the urge to stress-eat or lose your appetite entirely
• Cook at home (saves money and gives you structure)
• Limit alcohol—it's a depressant and won't help

Moving

• Exercise reduces anxiety and depression
• Even a 20-minute daily walk helps
• Free YouTube workouts if you canceled your gym
• Physical activity improves sleep and mood

Connecting

• Don't isolate yourself
• Talk to people, even if it's hard
• Join a virtual meetup or community
• Consider a layoff support group
• Text friends, call family, maintain relationships

Limiting news and social media

• Avoid doom-scrolling about the economy
• Set time limits on news consumption
• Don't compare your situation to others on LinkedIn
• Remember: people post their highlight reel, not their struggles

Maintaining structure

• Create a daily routine
• Get dressed (even if it's just nice loungewear)
• Designate a workspace
• Set work hours for your job search
• Take breaks

When to seek professional help:

• If you're feeling depressed for more than two weeks
• If you're having thoughts of self-harm
• If anxiety is interfering with daily activities
• If you're using substances to cope
• If you just need someone to talk to

Mental Health Resources →

Week 1 Checklist

Days 2-3

• [ ] File for unemployment (if not done on Day 1)
• [ ] Read severance agreement thoroughly (every page)
• [ ] Note severance deadline in your calendar
• [ ] Schedule time to review with lawyer if needed
• [ ] Check health insurance end date (confirm in writing)
• [ ] Research COBRA vs ACA options
• [ ] Calculate COBRA cost
• [ ] Check ACA subsidy eligibility

Days 3-4

• [ ] Calculate total financial runway
• [ ] List all monthly expenses (essential and non-essential)
• [ ] Identify expenses to cut immediately
• [ ] Cancel unnecessary subscriptions
• [ ] Contact creditors if you're concerned about payments
• [ ] Set up new budget tracking system
• [ ] Inform spouse/partner of financial situation
• [ ] Make plan for handling joint finances

Days 4-5

• [ ] Document accomplishments and metrics from recent role
• [ ] List potential references (aim for 5-7 people)
• [ ] Reach out to 2-3 references
• [ ] Create job search tracker spreadsheet
• [ ] Set up folders for job search (resume versions, cover letters, etc.)
• [ ] Bookmark key job boards
• [ ] Join relevant LinkedIn groups or communities

Days 6-7

• [ ] Draft resume update (don't overthink it yet)
• [ ] Quick LinkedIn review and updates
• [ ] Turn on "Open to Work" for recruiters
• [ ] Tell close friends/family
• [ ] Reach out to 2-3 professional contacts
• [ ] Make health insurance decision
• [ ] Enroll in new coverage if needed
• [ ] Plan activities for Week 2
• [ ] Schedule something enjoyable for yourself

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What's Next?

You've handled the first week. You know where you stand financially, your benefits are sorted, you've documented your accomplishments, and you're ready to focus on finding your next opportunity.

The chaos of the first few days is behind you. You have a system in place. You understand your timeline and your options. Now you can move forward strategically rather than reactively.

Next week, you'll:

• Polish your resume and LinkedIn profile
• Start strategic job applications
• Begin reaching out to your network more broadly
• Set up informational interviews
• Create your job search routine

But for now, acknowledge what you've accomplished this week. You've handled a crisis with professionalism and organization. That same capability will serve you well in your job search.

Next up: First Month Roadmap →

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Related Resources:

• First 24 Hours Checklist →
• Severance Negotiation Guide →
• Severance Agreements: What to Know Before Signing →
• WARN Act: Your Rights to 60 Days Notice →
• Emergency Budget Planning →
• Health Insurance Options →
• Unemployment Benefits Guide →
• Resume After Layoff →