What to Do When You Get Laid Off: Complete Guide (2025)

Your comprehensive roadmap after being laid off. From the first 24 hours through landing your next job, this guide covers everything you need to know.

December 12, 2025 Updated December 12, 2025 22 min read

LaidOffLaunch Editorial Team

Expert Contributors

Table of Contents

Getting laid off is one of life's most stressful experiences. Whether you saw it coming or it was a complete shock, you're probably feeling overwhelmed right now. Take a breath. You're going to be okay.

This guide walks you through everything you need to do after a layoff—from the first 24 hours through finding your next opportunity. We'll cover the legal, financial, practical, and emotional aspects of this transition so you can move forward with confidence.

First Things First: Don't Panic

Before we dive into the practical steps, here's what you need to know:

Layoffs are not personal failures. They're business decisions that happen to talented people every day. In fact, according to recent data, over 40% of workers will experience at least one layoff during their career. You're in good company.
You have time. Despite how urgent everything feels, most things can wait a day or two. Resist the urge to make hasty decisions while you're emotionally overwhelmed.
You have options. There are resources, protections, and support systems available to you—from unemployment benefits to healthcare options to legal protections.
This is temporary. The average job search takes 3-6 months, but it does end. You will work again.

The First 24 Hours

The day you're laid off, focus only on these essential tasks. Everything else can wait.

1. Don't Sign Anything Yet

Your employer may present you with a severance agreement, sometimes called a separation agreement or release of claims. Here's what you need to know:

You typically have 21 days to review it (45 days if you're over 40 and it's a group layoff under the Older Workers Benefit Protection Act). Additionally, you have 7 days after signing to revoke your signature. Don't feel pressured to sign immediately, even if HR makes it seem urgent.

What to do:

Accept the paperwork graciously
Say "I'd like to review this with my attorney/financial advisor before signing"
Ask when the deadline is for returning the signed documents
Request a digital copy if you only received paper
Don't make verbal agreements that aren't in writing

Why this matters: Once you sign, you're typically waiving your right to sue the company for wrongful termination, discrimination, or other claims. You may also be agreeing to non-compete clauses that could limit your job search. Take the time to understand what you're agreeing to.

2. Get Important Information

Before you leave the building (or the video call), make sure you know:

Employment details:

Your official last day of employment (may be different from the notification date)
Whether you're expected to work during a notice period or are being paid in lieu
If you're eligible for rehire (matters for future applications)

Financial information:

When you'll receive your final paycheck
How unused PTO will be paid out
The amount and schedule of severance payments (if applicable)
How your final bonus/commission will be calculated (if applicable)
Details about stock options or RSUs that haven't vested

Benefits information:

When your health insurance ends (often end of the month you're laid off)
When dental and vision insurance ends
Life insurance and disability coverage end dates
FSA/HSA deadlines for reimbursement claims
What happens to your 401(k) and how to access account information

Contacts:

Name and contact for HR questions
Payroll department contact
Benefits administrator contact
Who will serve as a reference for future employers
IT department for questions about returning equipment

3. Secure Your Personal Items

Physical items:

Personal belongings from your desk or workspace
Photos, plants, decorations
Any items you purchased yourself (ergonomic keyboard, desk accessories)
Notebooks with personal notes (check company policy)
Business cards from contacts you want to keep

Digital items (if allowed):

Personal files stored on work devices (transfer to personal drive)
Contact information for colleagues, clients, and vendors you want to stay in touch with
Copies of performance reviews, commendations, and awards (check your email archive)
Work samples that belong to you (check your employment agreement and intellectual property clauses)
LinkedIn recommendations you can request from colleagues
Calendar with dates of major projects and achievements for your resume

Important: Most companies will revoke access to email and systems immediately or within 24 hours. Don't wait to collect this information. However, respect intellectual property rights—don't take proprietary information, client data, or confidential documents.

4. File for Unemployment

Yes, file immediately—even if you're receiving severance pay. Here's why:

Most states have a one-week waiting period before benefits begin
Processing can take 2-3 weeks
You may be eligible even while receiving severance (depends on state)
The sooner you file, the sooner you'll receive your first payment
You can always stop claiming if you find a job quickly

What you'll need:

Social Security number
Driver's license or state ID
Employment history for the past 18 months
Your employer's name, address, and contact information
Dates of employment
Reason for separation

How much you'll receive: Unemployment typically replaces 40-50% of your previous income, up to a state maximum. In 2025, weekly benefits range from $235 to $855 depending on your state.

How to File for Unemployment →

5. Take Care of Your Immediate Emotional Needs

Being laid off is traumatic. Give yourself permission to feel what you're feeling.

Today, it's okay to:

Call a trusted friend or family member
Take the rest of the day off from productivity
Cry, feel angry, or be in shock
Order takeout instead of cooking
Go for a walk to clear your head

What to avoid today:

Making major financial decisions
Posting angry messages on social media
Reaching out to your former employer emotionally
Applying to jobs while you're upset (your cover letter will show it)
Drinking excessively or other unhealthy coping mechanisms

The First Week

Once the initial shock has passed, tackle these important tasks. Take them one at a time—you don't need to do everything in one day.

1. Review Your Severance Package

Now it's time to carefully review what you've been offered. If possible, have an employment attorney review it as well. Many attorneys offer free consultations, and the investment of a few hundred dollars could result in a better package.

Standard severance components:

Severance pay: Typically 1-2 weeks per year of service, though this varies widely by industry and level
Continuation of health benefits: Often 1-3 months
Outplacement services: Career coaching, resume help, job search support
Payment for unused PTO: Required by law in some states
Pro-rated bonus: For the time worked before termination
Extended vesting: Sometimes offered for stock options

Red flags to watch for:

Overly broad non-compete clauses: These may limit where you can work. If your state doesn't enforce non-competes (like California), you may be able to negotiate this out.
Non-solicitation agreements: Preventing you from working with former clients or recruiting former colleagues
Non-disparagement agreements: Limiting what you can say about the company (note: these often go both ways)
Releases that seem too broad: You shouldn't have to waive rights to claims you don't even know about yet
Tight deadlines to sign: Pressure tactics; know your rights

Questions to ask yourself:

Is the severance amount negotiable? (Often yes, especially for senior positions)
Can I negotiate for extended health benefits instead of more cash?
Will signing affect my unemployment benefits?
What happens if I find a job before the severance period ends?
Is the severance paid as a lump sum or over time? (Tax implications differ)

How to Negotiate Severance →

2. Make Health Insurance Decisions

Losing employer-sponsored health insurance is one of the most stressful parts of a layoff. Understanding your options will help you make the best choice for your situation.

You typically have 60 days to decide on COBRA, but coverage is retroactive—so you can wait and only pay if you need care during that period. This is called the "COBRA gap" strategy.

Your options:

1. COBRA (Consolidated Omnibus Budget Reconciliation Act)

Pros: Same coverage and doctors as before; no waiting period for pre-existing conditions
Cons: Expensive (you pay the full premium plus 2% admin fee—often $600-$2,000/month for families)
Best for: People with ongoing medical care, pregnancies, or who need the same coverage temporarily

2. ACA Marketplace (Healthcare.gov)

Pros: Often cheaper, especially if you qualify for subsidies; losing your job qualifies you for a Special Enrollment Period
Cons: Different network, may need to change doctors; coverage starts the first of the month after you enroll
Best for: Most people, especially if you're eligible for subsidies based on your reduced income

3. Spouse's or Partner's Plan

Pros: Often the most affordable option; layoff qualifies as a life event for enrollment
Cons: You must enroll within 30-60 days of losing coverage
Best for: Anyone with a working spouse/partner who has decent benefits

4. Short-term Health Insurance

Pros: Lower monthly premiums; fast enrollment
Cons: Limited coverage, doesn't cover pre-existing conditions, not ACA-compliant
Best for: Healthy people who need a very temporary bridge (not recommended for most)

5. Medicaid

Pros: Free or very low cost
Cons: Only available if you meet income requirements
Best for: Those with very limited income and assets

Pro tip: You can enroll in ACA coverage and keep the COBRA option as a backup. If you have a major medical event in the first 60 days, you can elect COBRA retroactively.

COBRA vs ACA: Which to Choose →

3. Handle Your 401(k) and Retirement Accounts

The good news: you don't need to rush this decision. Your money is safe where it is, and you have time to think it through.

You generally have four options:

1. Leave it where it is

Available if: Your balance is over $5,000 (if it's under, your employer may force a distribution)
Pros: No action needed; familiar platform; no tax implications
Cons: Limited to current investment options; may have account fees; harder to track with multiple old 401(k)s

2. Roll it into your new employer's plan

Available: Once you get a new job with a 401(k)
Pros: Consolidates accounts; may have better investment options or lower fees
Cons: Must wait until you're employed; some plans don't accept rollovers

3. Roll it into an IRA

Pros: More investment choices; often lower fees; consolidates old retirement accounts; easier to manage
Cons: Requires opening an account; can't borrow from an IRA like you can with a 401(k)
Best for: Most people who want control and flexibility

4. Cash out

Avoid this: You'll pay income tax plus a 10% early withdrawal penalty (if under 59½)
Only consider if: You're facing imminent foreclosure or eviction and have no other options

What about company stock? If you have company stock in your 401(k), special tax rules may apply (Net Unrealized Appreciation). Consult a tax advisor before moving it.

Action item: Log in to your 401(k) account, update your contact information to a personal email, and note the account number and customer service phone number.

4. Create an Emergency Budget

Now is the time to get brutally honest about your finances. Calculate exactly how long your savings (plus severance and unemployment) will last.

Step 1: Calculate your runway

Savings account balance: $______
Plus: Severance payment: $______
Plus: Unemployment (weekly benefit × weeks): $______
Plus: Other sources (spouse income, side gigs): $______
Total available: $______

Step 2: Calculate your essential monthly expenses

Housing (rent/mortgage): $______
Utilities (electric, gas, water, internet): $______
Health insurance: $______
Food and groceries: $______
Transportation (car payment, insurance, gas): $______
Minimum debt payments: $______
Phone: $______
Essential monthly total: $______

Step 3: Calculate your runway

Total available ÷ Essential monthly total = ____ months

Immediate expenses to cut:

Streaming services (keep one at most)
Gym membership (use YouTube workouts)
Subscription boxes
Premium app subscriptions
Dining out and takeout
Non-essential shopping
Expensive hobbies

Expenses to keep:

Health insurance (non-negotiable)
Home and car insurance (required)
Debt minimum payments (protects credit)
Essential utilities
Basic phone service
Internet (needed for job searching)

Smart money moves:

Call credit card companies and ask for hardship programs or reduced payments
Contact utility companies about payment plans
See if your mortgage lender offers forbearance
Pause 401(k) contributions (if you're still employed elsewhere)
Cancel annual subscriptions and switch to monthly (gives you flexibility)

Budget Planning Guide →

5. Notify Important People

Let the right people know about your situation:

Must tell:

Spouse/partner (if not already informed)
Co-borrowers on loans
Landlord (if you think you'll have trouble with rent)

Should tell:

Close family members who can offer support
Trusted friends
Professional contacts who might help with job leads

Consider telling:

Your network (via LinkedIn or email)
Former colleagues who might provide references

Don't tell (yet):

Social media at large (keep it professional)
Casual acquaintances
Anyone you don't trust to be supportive

The First Month

With urgent matters handled, shift focus to setting yourself up for a successful job search.

1. Update Your Resume

Your resume needs to reflect your most recent accomplishments and be tailored for 2025's job market.

Focus on:

Quantifiable achievements: "Increased revenue by 35%" not "Responsible for sales"
Impact, not just duties: What changed because you were there?
Skills that are in demand: Research job postings in your field
Keywords from job descriptions: ATS (Applicant Tracking Systems) scan for these
Recent, relevant experience: Your last 2-3 jobs matter most

Format tips:

Use a clean, ATS-friendly format (avoid tables and graphics)
Keep it to 1-2 pages (1 page if you have less than 10 years of experience)
Include a summary statement or headline at the top
Use action verbs (led, created, implemented, drove, launched)
Proofread multiple times—typos are resume killers

How to address the layoff:

You don't need to mention it on your resume
If you want to, add "(position eliminated in restructuring)" after the job title
Update your LinkedIn headline if you're currently unemployed

Resume Tips After Layoff →

2. Optimize Your LinkedIn Profile

Recruiters live on LinkedIn. In fact, 77% of recruiters use LinkedIn as their primary sourcing tool. Make sure your profile is working for you.

Your profile should be:

Complete: 100% profile completion gets 40x more opportunities
Up-to-date: Reflect your most recent role and accomplishments
Keyword-optimized: Use terms from job descriptions in your target field
Professional: Good headshot, compelling headline, detailed experience
Active: Post, comment, and engage regularly to boost visibility

Open to Work feature:

Turn on "Open to Work" in your settings
Choose "All LinkedIn Members" for aggressive searching or "Recruiters only" for discretion
Specify your job titles, locations, and work type preferences

Your headline matters:

Don't use "Unemployed" or "Between Opportunities"
Instead: "Marketing Manager | B2B SaaS Growth Specialist | Driving 40% YoY Revenue Growth"
Or: "Senior Software Engineer | Python & Cloud Architecture | Seeking New Opportunities"

Recommendations:

Request LinkedIn recommendations from former colleagues now
Reach out to managers, peers, and direct reports
Make it easy by offering to draft it for them

Activity:

Share industry insights and articles
Comment thoughtfully on others' posts
Engage with content from target companies
Join relevant groups and participate

LinkedIn Optimization Guide →

3. Start Networking

Here's a truth that surprises many job seekers: 70-80% of jobs are never posted publicly. They're filled through referrals and networking. This means your network is more valuable than job boards.

Who to reach out to:

Former colleagues (especially those who left for other companies)
College and graduate school alumni
Industry contacts from conferences or events
Friends and family in your field
Former managers and mentors
Clients or customers you had good relationships with

How to reach out:

For close contacts:

"Hi [Name], I hope you're doing well. I wanted to let you know that I was recently affected by layoffs at [Company]. I'm now exploring new opportunities in [field/role]. If you hear of anything that might be a fit, I'd appreciate you keeping me in mind. Would love to catch up when you have time!"

For professional contacts:

"Hi [Name], I hope this finds you well. I was recently laid off from [Company] as part of a restructuring and am exploring new opportunities in [specific area]. I've always admired your work in [their area], and I'd love to hear about what you're working on. Would you have 15-20 minutes for a call this week?"

For informational interviews:

"Hi [Name], I'm reaching out because I'm interested in learning more about [their company/role/industry]. I was recently laid off from [Company] and am considering opportunities in [area]. Would you be open to a brief informational interview? I'd love to hear about your experience at [Company] and get your insights on the industry."

Networking tips:

Be specific about what you're looking for
Don't immediately ask for a job—build the relationship first
Offer value (share an article, make an introduction)
Follow up and stay in touch
Express genuine interest in their work
Send thank-you notes after conversations

Where to network:

LinkedIn (engage with people's posts before reaching out)
Industry conferences and events
Professional associations in your field
Alumni networks
Meetup groups in your area
Virtual networking events (common in 2025)

Networking Guide →

4. Set Up Your Job Search System

Treat your job search like a job. Having a system will keep you organized and motivated.

Create a tracking spreadsheet:

Company name
Job title
Date applied
Application method (LinkedIn, company site, referral)
Contact person
Follow-up dates
Interview stages
Status (applied, phone screen, interview, offer, rejected)
Notes

Set daily goals:

Apply to 3-5 jobs per day (quality over quantity)
Reach out to 2-3 networking contacts
Research 5 target companies
Spend 30 minutes learning a new skill
Engage on LinkedIn

Organize your resources:

Master resume document
3-5 versions tailored for different types of roles
Cover letter templates
Portfolio or work samples
List of references
Folder for company research

5. Establish a Routine

Structure helps with both productivity and mental health. Without the external structure of a job, it's easy to fall into unproductive patterns.

Sample daily routine:

Morning (8:00 AM - 12:00 PM):

Wake up at consistent time
Exercise or walk
Shower and get dressed (work clothes optional, but get out of pajamas)
Breakfast
Job search tasks: Apply to jobs, network, research

Afternoon (12:00 PM - 4:00 PM):

Lunch break (away from your computer)
Skill-building: Online courses, certifications, reading
More applications or follow-ups
Interview prep if you have interviews scheduled

Evening (4:00 PM onward):

Stop job searching (burnout is real)
Exercise, hobbies, social time
Relax and recharge

Weekly routine:

Monday: Plan the week, set goals
Tuesday-Thursday: Active job searching
Friday: Follow-ups, networking, reflection
Weekend: Minimal job search, focus on self-care

Productivity tips:

Use the Pomodoro Technique (25 minutes focus, 5 minutes break)
Treat it like a job: start and end at consistent times
Take real breaks—don't eat lunch at your desk
Don't job search in bed or in pajamas
Separate your workspace from relaxation space if possible

Ongoing: Take Care of Yourself

Job searching is emotionally exhausting, and the stress of unemployment can take a real toll on your mental and physical health. Don't neglect self-care.

Mental Health

Allow yourself to grieve: Losing a job is a real loss—of identity, routine, colleagues, purpose. It's normal to feel:

Sadness or depression
Anger at your former employer
Anxiety about the future
Shame or embarrassment
Loss of confidence
Uncertainty about your career

Strategies for mental health:

Talk to a therapist (many offer sliding scale fees; some are covered by insurance)
Join a layoff support group (check Meetup or LinkedIn)
Practice mindfulness or meditation (try apps like Headspace or Calm)
Journal your thoughts and feelings
Set boundaries with your job search (don't search 24/7)
Celebrate small wins (applied to jobs, got a response, had a good networking call)

Red flags to watch for:

Can't get out of bed
Loss of interest in activities you used to enjoy
Persistent hopelessness
Changes in sleep or appetite
Thoughts of self-harm

If you experience these, please seek professional help immediately.

Physical Health

Stay active:

Exercise reduces stress and improves mood
Free options: walking, running, YouTube workouts, hiking
Maintain a routine even if you cancel your gym membership

Eat well:

Stress can lead to comfort eating or skipping meals
Meal prep to save money and eat healthier
Avoid excessive alcohol or caffeine

Sleep:

Maintain consistent sleep schedule
Avoid screens before bed
Don't use your bed as your job search workspace

Stay connected:

Don't isolate yourself
Schedule regular calls or meetups with friends
Join groups or volunteer
Attend networking events for the social aspect too

Set boundaries:

It's okay to say "I don't want to talk about the job search right now"
Limit time with people who make you feel worse
Don't compare your journey to others'

Limit news consumption:

Constant news about layoffs and the economy will increase anxiety
Check news once a day, then step away
Unfollow accounts that make you feel bad

Mental Health Resources →

What to Say in Interviews

When asked about your layoff, keep it simple, honest, and positive. Remember: layoffs are common and most interviewers have either been laid off themselves or know someone who has.

Good responses:

"My position was eliminated as part of a company-wide restructuring where they reduced headcount by 15%. I'm proud of what I accomplished there, including launching three major product features that increased user engagement by 40%. Now I'm excited to bring those skills to a new opportunity where I can make an impact."

"The company went through a reorganization and my entire department was dissolved. While I'm disappointed it ended that way, I learned so much during my three years there about scaling operations. I'm looking forward to applying that experience in a new role."

"Like many tech companies in 2025, my former employer had layoffs. My role was one of those eliminated. I'm grateful for the experience I gained and I'm now focused on finding the right next opportunity where I can contribute to a growing team."

Key principles:

Keep it brief: 2-3 sentences maximum
Be honest: Don't lie or exaggerate
Stay neutral: Don't badmouth your former employer
Show accomplishments: Pivot to what you achieved there
Express enthusiasm: Show you're excited about this opportunity
Move on: Don't dwell on it

What not to say:

"They fired me" (technically incorrect; being laid off is different from being fired)
"The company was terribly managed" (sounds like sour grapes)
"I should have seen it coming" (undermines your judgment)
Long, rambling explanations (makes it seem like you're hiding something)
"I'm desperate for any job" (kills your negotiating power)

Interview Preparation →

Special Situations

If You're on a Work Visa

Layoffs are particularly stressful if you're on an H-1B or other work visa. You typically have a 60-day grace period to:

Find a new employer to sponsor you
Change to a different visa status
Leave the country

Immediate actions:

Consult an immigration attorney immediately
Notify USCIS of your termination
Start searching for employers who sponsor visas
Consider changing to a different status (B-2 visitor, F-1 student)
Know your rights—you're still entitled to severance and unemployment in many cases

If You're Close to Retirement

Being laid off in your 50s or 60s presents unique challenges:

Consider:

Taking early Social Security (available at 62)
Using bridge employment (part-time or contract work)
Retiring earlier than planned if finances allow
Age discrimination laws (ADEA protects workers 40+)
Whether to pursue age discrimination claims

If You Have a Non-Compete

Non-compete clauses can limit your ability to work in your field. However:

Many states don't enforce them or have limitations
They must be reasonable in scope, geography, and time
Courts often side with workers who need to earn a living
You may be able to negotiate them during severance discussions
Consult an employment attorney about your specific situation

You Will Get Through This

A layoff feels like the end of the world, but it's often the beginning of something better. Many people look back on their layoff as a turning point that led to:

A better job with higher pay
A career change they'd been putting off
Starting their own business
A newfound appreciation for work-life balance
Stronger professional networks
Greater resilience and confidence

Remember:

Your worth is not defined by your employment status
This is temporary
You have valuable skills and experience
Many successful people have been laid off
This is an opportunity to reassess what you want from your career

Take it one day at a time. Use the resources on this site. Reach out for help when you need it. And be patient with yourself—job searching is hard work.

Quick Reference Checklist

Day 1

[ ] Don't sign severance agreement yet (take time to review)
[ ] Get final paycheck, benefits, and 401(k) information
[ ] Ask who will serve as a reference
[ ] Secure personal items and contacts from workplace
[ ] Save important emails and performance reviews
[ ] File for unemployment benefits
[ ] Call a trusted friend or family member for support

Week 1

[ ] Review severance package in detail (consult attorney if needed)
[ ] Negotiate severance if appropriate
[ ] Research health insurance options
[ ] Decide on COBRA vs. ACA marketplace
[ ] Review 401(k) rollover options (don't rush this decision)
[ ] Update personal contact info with payroll and benefits
[ ] Create emergency budget and calculate runway
[ ] Cut unnecessary expenses
[ ] Notify important people (family, co-borrowers)

Month 1

[ ] Update resume with recent accomplishments
[ ] Optimize LinkedIn profile
[ ] Turn on "Open to Work" on LinkedIn
[ ] Request LinkedIn recommendations from colleagues
[ ] Create job search tracking system
[ ] Start networking with former colleagues and contacts
[ ] Research target companies and roles
[ ] Set up daily job search routine
[ ] Begin applying to jobs (quality over quantity)
[ ] Schedule self-care activities
[ ] Consider therapy or support groups

Ongoing

[ ] Apply to 3-5 quality positions daily
[ ] Network with 2-3 people per week
[ ] Follow up on applications and contacts
[ ] Continue skill-building (courses, certifications)
[ ] Prepare for interviews
[ ] Maintain physical and mental health routines
[ ] Celebrate small wins
[ ] Stay connected with friends and family

Need more help? Start with our First 24 Hours Checklist for a detailed day-one action plan.

Related Resources:

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