A few months ago, someone close to me was laid off without warning. No dramatic scene, no major misstep—just a quiet restructuring email on a Wednesday afternoon. Two days later, another friend got the same news from a different company. That’s when I started asking questions.
What do you actually do in those first hours, days, and weeks after losing your job?
It’s a question that had quietly lived in the back of my mind (and probably yours too). So I reached out to career coaches, financial planners, and a few people who’ve been through it themselves. I wanted to know—not just what the internet says, but what real experts advise, and what actually helps.
If you’ve just been laid off—or know someone who has—here’s where to begin.
First, Give Yourself Permission to Pause
It may sound counterintuitive, but nearly every expert I spoke to began here: don’t rush into job boards or panic spreadsheets just yet.
There’s an emotional shock to losing a job, even if you saw it coming. And if you don’t allow yourself to process it—even briefly—it can creep into your decision-making later.
That doesn’t mean you have to stage a full-on emotional retreat. But a few days to catch your breath, reset your nervous system, and let the news settle? That’s not indulgence. It’s strategy.
As one career coach put it: “If you don’t pause, you may end up accepting a job out of fear instead of intention. That short pause can change your whole trajectory.”
So start with rest. Eat real food. Take a walk. Tell someone you trust. And then, when you’re ready, start moving through the next phase—smartly, calmly, and with your long game in mind.
Step 1: Understand the Financial Landscape First
Before jumping into job searches or resume updates, take time to get grounded financially. Not to stress yourself out—but to give yourself the clearest picture of what you’re working with.
Key areas to focus on:
- Final paycheck: Confirm that it includes all owed wages, unused vacation, and bonuses (if applicable). Some companies separate this into multiple payments—check timelines.
- Severance package: If you’re offered one, read the details carefully. Some include non-disclosure or non-compete clauses, and you may have time to negotiate. It’s OK to ask questions—or consult a lawyer.
- Unemployment benefits: Don’t wait to apply. Eligibility rules vary by state, but many people qualify even if they received severance. File online through your state’s unemployment office.
- Emergency budget: Create a temporary version of your budget based on essentials. You don’t need to cut everything—but knowing your minimums can help you feel more in control.
As one financial planner told me: “Even if you think you’re ‘fine for now,’ seeing your numbers laid out clearly is how you stop the brain from spiraling into worst-case scenarios.”
The goal isn’t to solve your finances overnight. It’s to reduce ambiguity so you can move forward with less noise.
Step 2: Secure Health Insurance (So You’re Covered, Literally)
Health insurance often ends on your last day or the end of the month—whichever comes first. So it’s worth tackling early to avoid gaps in coverage.
Common options include:
- COBRA: Lets you keep your employer plan for up to 18 months, but you’ll likely pay full premium costs. It’s usually the most seamless but often the most expensive.
- Marketplace plans: Losing a job qualifies you for a special enrollment period on healthcare.gov or your state’s exchange. This route may offer subsidies based on your new income.
- Spouse/partner plans: If your partner has employer coverage, you may be able to join within a 30- or 60-day window after job loss.
- Short-term plans: These aren’t ideal for everyone, but may work as a temporary bridge if you're between options.
You don’t have to choose the perfect plan for life—just one that covers you now, while you figure out the rest.
Step 3: Reclaim Your Career Documents (Before You Lose Access)
It sounds simple, but it’s easy to forget: when you’re laid off, you may lose access to internal tools, email, and projects quickly.
Before that window closes:
- Forward any personal contacts or notes you may need later (within company policy).
- Save copies of performance reviews, testimonials, or success metrics.
- Take screenshots or notes on projects you led or contributed to (without confidential info).
- Update your resume with recent wins—don’t rely on memory three months from now.
One career coach told me: “I’ve worked with so many clients who didn’t grab their numbers or materials before access was revoked. And when it’s time to job hunt, they’re stuck trying to remember the details.”
Your past performance is your future leverage—protect it early.
Step 4: Craft Your “Laid Off” Narrative Thoughtfully
You don’t need to turn job loss into a personal brand story (unless you want to), but you do want to be able to explain it clearly, calmly, and without shame.
Recruiters aren’t alarmed by layoffs anymore. What they want is to hear a confident, professional explanation—and a sense of what you’re looking for next.
Some options include:
- “My role was impacted as part of a company-wide restructuring in Q1.”
- “The company shifted direction, and our entire product team was let go.”
- “I was part of a strategic reduction in workforce after a merger.”
Then pivot to what you're excited about: the kind of role, team, or challenge you're seeking now.
The clarity and tone of your story—not the story itself—is what people remember.
Step 5: Rethink Before You Rebound
It can be tempting to apply to every job in your field within 24 hours. And for some people, especially those with urgent financial needs, that’s valid.
But if you can afford to pause even briefly, it’s worth asking: What do I want to carry forward—and what do I want to leave behind?
This might include:
- Reassessing your ideal role, schedule, or work environment
- Exploring new industries or adjacent career paths
- Considering contract or freelance work as a bridge
- Talking to peers about what’s out there now (market dynamics shift quickly)
One of the most encouraging things a coach shared was this: “Laid-off clients often land in better roles—not because they were lucky, but because they finally had space to pivot.”
So if you can take that pause, even for a week, use it as a reset—not just a scramble.
According to a 2022 report by LinkedIn, 61% of professionals who were laid off found new jobs within three months, and many reported increased satisfaction with their new role.
That doesn’t minimize the stress—but it does challenge the assumption that job loss equals long-term setback. For many, it can mark a powerful (if painful) turning point.
Step 6: Get Strategic With Networking (Even If You Hate It)
Networking doesn’t have to mean cold emails and coffee awkwardness. It can be as simple as:
- Letting your inner circle know you’re looking (with clarity on what for)
- Reconnecting with former colleagues or managers
- Joining industry Slack groups or LinkedIn communities
- Offering to help others—you’d be surprised how much that reciprocity opens doors
The key is to be visible and specific. Don’t just say “looking for new opportunities.” Try: “I’m exploring mid-level UX design roles at mission-driven startups, ideally remote or hybrid.”
This gives people a hook to refer you—and reminds them you’re not just jobless, you’re valuable.
Step 7: Watch Out for the Emotional Traps
Even when your rational brain knows it wasn’t personal, layoffs can still hit your self-worth.
You may find yourself thinking:
- Why me?
- What if I never bounce back?
- I should have seen it coming.
- Maybe I wasn’t that good anyway.
These thoughts are normal—but they’re not the full truth.
Find practices that anchor you: journaling, therapy, movement, support groups, humor. Keep close to the people who see your worth when your confidence wobbles. And try to separate the event (the layoff) from the narrative you build around it.
As one financial planner told me: “When you’re laid off, you lose a paycheck—but you don’t lose your experience, your skills, or your story.”
Stuff Worth Remembering
1. You’re not alone—and you’re not broken. Layoffs are about business decisions, not personal failures.
2. Don’t skip the pause. Before you start job-hunting, give yourself space to process and regroup.
3. Your financial clarity is a source of power. Knowing your runway helps you act with strategy, not fear.
4. The story you tell yourself matters. Practice a version that’s grounded, professional, and kind.
5. There’s life—and opportunity—on the other side. Layoffs are an ending, yes. But they’re often a beginning too.
The End Isn’t the End
There’s something oddly disorienting about closing your work laptop for the last time and realizing... you’re not expected to log back in. For many, layoffs aren’t just job losses—they’re identity shakes, routine shuffles, life pivots.
And yet: the very fact that you’re reading this? That you’re asking “what now” with curiosity instead of collapse? That’s already a signal of resilience.
You don’t have to figure it all out today. You just have to take the next step. And then the one after that.
Because the truth is, a layoff may knock you off course—but it may also redirect you to something better aligned, more sustainable, or surprisingly exciting. You might not see it now. But you will.
So breathe. Reclaim your footing. And when you’re ready—go build what comes next.
