What to Do When You Get Laid Off

The First 24 Hours

Being laid off delivers a shock that bypasses rational thought. Your brain floods with cortisol. Your first instinct may be to call everyone you know, send panicked emails, or spiral into worst-case scenarios. Resist all of these.

The first 24 hours have one purpose: stabilise, not solve.

What to do in the first few hours

• Get the terms in writing. Before you leave the call or the meeting, confirm you'll receive a written offer of severance terms. Don't sign anything on the day — you usually have time to review, and you should use it.
• Ask the practical questions. When is your last day? What happens to unvested equity? Will they provide a reference? Can you stay on benefits during the notice period? Write down the answers.
• Back up what's yours. Personal contacts, work you're proud of (within what's permitted), any documents that belong to you. Do this before you lose system access.
• Tell the people who need to know. Your partner, immediate family. Not your whole network — that can wait.
• Give yourself the evening off. This is not the moment to update your CV, send LinkedIn messages, or apply for jobs. It's the moment to process an emotional event.

The First Week

Once the initial shock subsides, the first week is about gathering information and making a plan — not about urgently executing on it.

• Review your severance package carefully. Understand what you're being offered versus what's legally required in your jurisdiction. Consider consulting an employment lawyer if the package is substantial or if anything seems unusual.
• File for unemployment benefits immediately. In most countries, there's a waiting period before benefits kick in. Starting the process on day one of your job search shortens that wait. Do not delay this.
• Update your financial picture. What do you have in savings? What are your monthly outgoings? How many months of runway do you have? Knowing this number — precisely — is far less scary than not knowing it.
• Reach out to your network — but not to ask for jobs. Tell close contacts what's happened and what you're looking for. Frame it as keeping them informed, not as a desperate plea. Most people want to help; give them something specific they can do if they want to.
• Update your CV and LinkedIn. Don't rush this — do it properly. A well-constructed profile is more valuable than a hastily posted one.

Immediate Financial Steps

Financial anxiety amplifies everything else that's already hard about a layoff. Getting clarity on your finances — even if the picture isn't great — reduces that anxiety significantly.

• Calculate your runway. Savings + severance ÷ monthly essential spending. This is your actual number of months. Many people have more than they think.
• Cut non-essential spending immediately. Not permanently, but for now. Subscriptions, eating out, discretionary purchases — pause them. This is not about punishment; it's about extending your runway and reducing pressure.
• Check your health insurance situation. In countries without universal healthcare, losing employer coverage is urgent. Understand your options: COBRA, marketplace plans, spouse's plan, short-term coverage.
• Don't touch retirement accounts. Early withdrawal penalties are severe. This is the absolute last resort.
• Look at what's negotiable. Mortgage/rent deferrals, utility payment plans, credit card hardship programmes — these exist. You may not need them, but knowing they exist reduces panic.

Your Mental Health

Layoffs are one of the most identity-disrupting events in professional life. For many people, work is deeply tied to self-worth — so losing the job feels like losing part of yourself. That response is valid and common.

What tends to help:

• Separate the event from the narrative. "I was laid off" is a fact. "I am a failure" is a story. The business made a cost decision. It is not a verdict on your worth.
• Maintain structure. The loss of a daily structure is one of the most destabilising aspects of unemployment. Set a schedule: wake time, dedicated job search hours, exercise, social time. Structure creates a container for the uncertainty.
• Move your body. Exercise is one of the most evidence-backed interventions for anxiety and depression. This is not optional during a difficult period — it's foundational.
• Stay connected. Isolation accelerates the spiral. Even brief social contact — a walk with a friend, a coffee with a former colleague — matters significantly.
• Give yourself a timeline before you panic. Two weeks in is far too early to draw conclusions about your job search. Decide in advance what timeline would genuinely concern you, and don't assess the situation before that point.

Job Search Strategy After a Layoff

A job search conducted from a layoff is different in important ways from one conducted while employed. You have more time, more urgency, and — importantly — a built-in conversation starter that most people underuse.

Use your network first

70–85% of roles are filled through connections, not job boards. Your network is your primary job search tool. Systematic outreach to former colleagues, managers, clients, and contacts is more valuable than hours on LinkedIn Jobs.

Be specific about what you're looking for

Vague requests ("let me know if you hear of anything") get vague results. Tell your network: "I'm looking for senior product roles at Series B–D startups in fintech or e-commerce, ideally in London or remote." Specific is actionable.

Apply quality over quantity

The temptation when unemployed is to spray applications everywhere. This rarely works and drains morale. A tailored application to 5 well-matched roles outperforms a generic blast to 50. Focus on fit, not volume.

Stay visible

Post on LinkedIn. Share your perspective on industry topics. Comment on content. This signals activity, relevance, and engagement — and keeps you in people's feeds during the period when you most want to be remembered.

Using the Layoff as Leverage

It may not feel like it in the first week, but a layoff can be a genuine accelerant. Many people land significantly better roles than the ones they left — because they finally had reason to look deliberately.

• You can take more time to assess options. When employed, people rush job searches because availability is time-limited. You now have the luxury of evaluating carefully.
• "I was part of a broader layoff" is a neutral to positive signal. Recruiters understand mass layoffs. It carries none of the stigma of being fired for performance. You have nothing to hide.
• Use the severance period wisely. If you have 2–3 months of financial runway, you don't need to accept the first offer. Use the time to find the right one.
• Consider what you actually want. A layoff forces a pause that employed people rarely take. Use it to genuinely evaluate: what kind of work, culture, and role do you want next — not just what's available?

FAQ