To survive a layoff, prioritize your finances by checking your savings and establishing a new budget. Understand your rights and benefits that you’re entitled to. Then, consider negotiating with your employer for the best possible outcome. Also, ask your employer for endorsements and a recommendation letter. This will help you in your job hunt. Next, outline a job search strategy and update your resume or CV. Afterward, let your network know that you’re seeking your next role, and start applying to new jobs. 

Getting laid off is one of the top ten most stressful life experiences, according to a study on NCBI.

Yet, 84,749 workers at U.S. tech companies have lost their jobs in 2024 alone, following more than 191,000 layoffs in 2023, as shown on Crunchbase’s tech layoff tracker. 

If you’re anything like me, and you tend to get in over your own head, your mind probably races with a hundred different scenarios after hearing bad news. But before you get lost in the what-ifs, now’s more important than ever to focus on what you can do from here on out. 

This guide will walk you through all the steps you need to take to survive a layoff so that you can get through this in one piece and bounce back strong.

How to Survive a Layoff and What to Do Right After Receiving the “News”

These are the practical steps to survive a layoff:

1. Take the time to process everything
2. Understand your rights and benefits you could be entitled to
3. Check your savings
4. Establish a new budget for the meantime
5. Consider negotiating with your employer
6. Seek endorsements from your employers
7. Outline a strategy to secure your ideal job
8. Update your resume or CV
9. Let everyone in your network know that you’re looking for a new role
10. Start applying consistently and put yourself out there
11. Update your interview skills

We’ll go through the entire process in more detail below so that you know exactly how to financially and emotionally stay afloat when navigating through a layoff. 

Important Note: The sample timelines provided for each step are based on general estimates and are intended to serve as a helpful guide to navigate the aftermath of a layoff. These timelines are not universal, your personal circumstances and pace will vary. 

1. Take the time to process everything

A study from NCBI stated that those who are unemployed have a poorer state of well-being than those who are employed. And according to a study on CDC involving 278,424 people aged 25–54 in the US, nearly 40% of those unable to work reported poor mental health.

Additionally, analysis from the American Psychological Association clearly reveals that losing your job negatively impacts your mental and physical health. 

I’m not saying this to further agitate what you must be feeling now. But remember that it’s never easy to deal with a layoff psychologically — and accept it. 

Your first step should be to take time to process things, acknowledge your feelings, and get ready to face the current reality. This is key to bouncing back without burning out. Not addressing your mental state clouds your judgment, hinders your ability to act decisively, and can make daily life feel like a chore. 

Here are a few tips to process things: 

• Take a break. If possible, take a few days off to recharge before planning out the next steps. Do something completely unrelated to work, like spending time on a hobby or catching up with a friend. 
• Talk it out. Speak with a friend, family member, or therapist. Verbally expressing yourself can help reduce the burden and unlock a new perspective. 
• Write down your thoughts. There’s something about getting your thoughts down on paper that makes you sigh in relief. Besides being a form of release, it can help you gain clarity into what you truly want moving forward. 
• Set small goals. Yes, there’s a lot to concern yourself with, especially after being laid off. But overwhelming yourself with big decisions can make you want an out rather than move forward. Break everything down into small, manageable tasks. A good first step, for instance, is organizing your thoughts or going out for a walk to think things through. 
• Practice self-care. Activities like meditation, stretching, yoga, and exercise go a long way toward taking care of your mental health. 
• Build a new temporary routine. Create a new routine that you can stick to. Set dedicated hours for certain tasks and activities, so as not to feel overwhelmed. You’re out of a job, but you still have work to do — looking for employment is your new full-time activity.

Once again, it’s crucial to confront your emotions to prevent them from festering so you can face what’s ahead with a clear mind. 

Sample timeline: 1–2 weeks. 

2. Understand your rights and benefits you could be entitled to

A study on ResearchGate found that about half of respondents expressed a desire to know more about their employment rights. After all, knowing what you’re qualified for can help you financially navigate through the aftermath of a layoff and ease your transition. 

Here’s what you can do to make sure you’re informed of what you’re entitled to: 

• Review your employment contract. Start by going over your work agreement and check any relevant company policies. Keep a close eye out for terms revolving around severance pay, notice periods, and any other termination clauses. 
• Check your severance package. When you’re laid off, you may have entitlement to a severance package. If so, carefully review the terms and make sure you fully understand the conditions. Never sign anything in a rush, even if your employer might pressure you to. If something seems unclear or unfair, I’d either suggest seeking legal advice or reading the book “Don’t sign anything: A guide for the day you are laid off.”
• Understand health insurance options. See if you’re eligible for any health benefits that you can claim after the layoff. For example, in the U.S., you might be eligible for COBRA or another continuation of benefits. Make sure you know the deadlines for enrolling.
• Explore unemployment benefits. Research local unemployment benefits by visiting government websites or contacting your local employment office. Check the eligibility criteria, application process, and the amount of support you can expect. If you’re eligible, file for unemployment as soon as possible. Besides having some extra cash, it helps with making the legal stuff around off-boarding easier.
• Look into other support options. Depending on your circumstances, you might qualify for additional support, including financial assistance and job retraining programs. 
• Seek legal advice. Unsure about your rights or feel you haven’t been treated fairly? I’d suggest getting legal advice. 

Take into account deadlines when exploring your options. 

Sample timeline: 1–2 weeks.

3. Check your savings

In short, count up whatever funds you have in your finance accounts to get a picture of your financial safety net. 

Unfortunately, 27% of American adults have no emergency savings whatsoever, according to Bankrate’s annual savings report. If you fall into this category, skip this step and move onto the next. 

Here are a few tips:

• Review all of your accounts. Check the balances in all your savings accounts, current accounts, and other liquid assets. Take note of the total amount available to you. 
• Assess your emergency fund. If you have a dedicated emergency fund, prioritize stretching it for as long as possible.
• Identify any liquid assets. See if you have any other easily accessible funds or investments that you can take money out of if needed. 
• Determine your financial runway. Based on how much money you have access to in all your accounts and liquid assets, calculate how long you can comfortably manage without having any income source. This “runway” will guide your budgeting and help you prioritize your next steps. 

Sample timeline: 1–3 days.

4. Establish a new budget for the meantime

In a survey conducted by NerdWallet, over 80% of Americans have admitted to occasionally spending more than their monthly budget. 

Now, there’s nothing wrong with spending some more money to enjoy yourself from time to time. But after a layoff where you’ve lost your main source of income, it’s important to be even more cautious by establishing a new monthly budget to help you stay financially stable. 

Follow these steps when updating your budget: 

• List your essential monthly expenses. Start by looking at your non-negotiable monthly expenses, such as rent or mortgage, utilities, groceries, insurance, and debt payments. Add up all the monthly costs for your basic needs. 
• List your non-essential monthly expenses. Non-essential expenses include shopping, dining out, subscriptions, and entertainment. See how much you’re spending in different areas.
• Cut down your spendings where you can. Identify where you can reduce or eliminate costs to conserve your funds. For instance, cut down on how much you spend on shopping, or remove monthly subscriptions that you don’t need. 
• Look for cost-saving opportunities. Find ways to minimize your monthly bills, such as switching to more affordable service providers or going to a different grocery store. 
• Set a spending limit. Be realistic about what you can afford and adjust your lifestyle accordingly. 
• Monitor where you’re spending your money. Track your expenses closely to make sure you’re staying within budget. You might want to consider using a free budgeting app or spreadsheet to keep an eye on where your money is going. 

Sample timeline: 2–5 days.

5. Consider negotiating with your employer

This might seem like quite a daunting task, but it’s an essential step that can help you secure better terms.

I’m talking about potentially securing additional financial support, extended benefits, or other favorable terms that can ease your transition. 

Here are examples of what you might want to consider negotiating: 

• Inquire about unused vacation or sick days. See if any unused paid leaves can be paid out as part of your severance. It might seem like a small addition, but every bit helps. 
• Propose a phased exit. If both you and the organization are open to it, suggest a phased exit where you continue to work part-time or on a contract basis for a limited period. This can provide you with some income while giving your employer time to adjust.
• Request job placement assistance. Some companies offer outplacement services to help laid-off employees find new jobs. If this isn't already offered, ask if they can provide assistance with job placement or career coaching.
• Timing of your departure. Negotiate the timing of your layoff to align with your financial needs or to give you more time to prepare for the transition.
• Consider offering freelance or consulting work. This is a less common option, but some employers might be open to retaining your services on a freelance or consulting basis after your official departure. It’s worth considering if you have the flexibility and the company still needs your expertise.
• Higher severance pay. If your current severance package seems inadequate, you can try negotiating for a better deal. Research the standard rates in your industry and use that information to your advantage. 
• Extended health benefits. Ask your employer if they might be willing to extend your health benefits for a longer period. 

Sample timeline: 1–2 weeks.

6. Seek endorsements from your employers

Secure as many endorsements as you can. Having endorsements from employers serves as powerful testimonials, which can greatly support you in your job search. This is also an opportunity to clarify any misconceptions around your layoff. 

Here are a few ways to seek endorsements from your employers:

• Request for a formal recommendation letter. Ask your employer or direct supervisor to write you a letter of recommendation that highlights your strengths, achievements, contributions, and positive attributes. 
• Ask for LinkedIn recommendations. Reach out to employers and colleagues. Ask them to draft a LinkedIn recommendation that you can add to your profile to reinforce your credentials. 
• Make sure you have references. Confirm you have key contacts within the company who are willing to act as references for you in your job search. Make sure they’re comfortable discussing your performance positively and clarifying that the layoff was unrelated to your work performance. 
• Inquire about referrals to other opportunities. See if your employer is aware of any job openings. Politely ask if they could refer you to their network to help you get your foot in the door for these opportunities. 

Sample timeline: 1 week.

7. Outline a strategy to secure your ideal job

The last thing you’d actually want is to land the wrong job at the wrong company. While it might solve the immediate problem of needing to find a new job, it can be detrimental in the long run, since it means stalling your career growth. 

A well-thought-out job search strategy keeps you focused, motivated, and consistent in your efforts. It’s also crucial for demonstrating a clear trajectory of career progression to potential employers. Settling for something less can disrupt this trajectory, which is why a strategic approach is essential.

Here’s what to do when outlining a strategy to secure your ideal job:

• Define your career goals. Clarify what you want long-term and what your next ideal role looks like. Consider job titles, industry, salary, and location. Knowing what you’re looking for will help you target the right opportunities that align with your long-term vision. 
• Make a list of top companies. Identify the top companies that align with your career goals. Research them, understand their culture, and check for any job openings. Focus your efforts on applying to companies where you genuinely want to work. 

Sample timeline: 1–2 weeks.

8. Update your resume or CV

It might’ve been a while since you last updated your resume. Naturally, it should accurately reflect your most up-to-date skills, experiences, and career goals.  

Here’s a quick summary of what to update on your resume: 

• Add your most recent job position. Include a new entry in the work experience section for your current or most recent job. 
• Mention new achievements using data. Write bullet points detailing your specific responsibilities and achievements. Use numbers to emphasize your impact. 
• Emphasize relevant skills. Share how you applied industry skills and expertise directly related to the target field to make a positive impact. 
• Remove outdated information. Make sure your contact information is correct, and consider removing old job positions that are no longer relevant. 
• Add or remove additional sections. Focus on what’s most related to the role you’re seeking. For instance, consider adding a notable project in the projects section, or removing the certifications section when all certificates listed aren’t really relevant.

• Update your resume summary. If your resume includes a summary or objective statement, revise it to reflect your current career goals, areas of expertise, and what you bring to the table.

Sample timeline: 1–2 weeks.

Recommended guides: 

• How to Write a Resume
• How to Write the Perfect Resume Work Experience Section 
• How to Format Your Resume

9. Let everyone in your network know that you’re looking for a new role

Here are a few key points to note from LinkedIn’s hiring statistics: 

• Social professional networks are considered the most effective source of quality hires, followed closely by online job boards and employee referrals.
• Employee referrals and social professional networks are among the top sources for employers to find high-quality candidates.
• Most people search for new jobs using online job boards (60%), social professional networks (56%), and word of mouth (50%).

In other words, having a strong professional network is a cheat code when it comes to finding new career opportunities. 

To announce your situation to your network, make a public post on LinkedIn. You can use the following template:

“Hi everyone,

I wanted to share that I’ve been recently laid off and am actively looking for new opportunities. I am seeking a role as a [Job Title] where I can leverage my experience to make a meaningful impact. 

With X years of experience in [Industry], I have developed a strong background in [Field/Area]. 

My qualifications include: 
• [Qualification 1]
• [Qualification 2]
• [Qualification 3]

My biggest skills include: 
• [Skill 1]
• [Skill 2]
• [Skill 3]

I would greatly appreciate it if you could share this post within your network. 

Your support can help me connect with potential employers and opportunities. 

Thank you for all your time and assistance!”

One important note: don’t limit this announcement to your online presence. Literally, tell everyone you speak to that you’re looking for a new job. You never know which one of your friends’ cousins’ spouses is currently searching for someone with your exact skill set.

Sample timeline: up to 1 week.

10. Start applying consistently and put yourself out there

With your resume updated and network activated, it’s time to dive into the job search process. 

Consistency and persistence are key for this phase. Job hunting can be a numbers game, so I can’t stress enough how important it is to keep submitting applications. The more you submit, the more likely you are to get a response. 

Keep tailoring your job application to each company you apply to, and keep the momentum going. 

Here are a few job searching strategies to put yourself out there:

• Start with your “dream” companies. Ideally, start by applying to your “dream” companies. Go to their website, check the “careers” page (or similar), find your job position, and apply. If they don’t have any active job posts for your position, it could be worth sending a letter of interest. 
• Use job search engines to find job openings. Browse through platforms like LinkedIn and Indeed to find new career opportunities. Set up job alerts and notifications about roles that match your criteria. 
• Tailor each application you send. Never use the same resume and cover letter for every job ad. Customize your job applications. Every single one should read as a tailored and personalized document meant specifically for the company you’re applying to. 
• Get active on LinkedIn. Optimize your LinkedIn profile and expand your search beyond job boards by building connections with industry experts. Make relevant posts, leave meaningful comments to industry content, and even reach out to potential employers. 
• Attend virtual and in-person industry events. Participating in industry-related events and webinars can help you expand your network and find new opportunities. 
• Follow up on applications. After applying, don’t hesitate to follow up with an employer when you haven’t heard back within 1–3 weeks. A polite email can demonstrate enthusiasm and keep you top of mind. 
• Set daily or weekly job search goals. Establish specific and realistic goals for your job search. For example, submitting 1–3 new job applications per day. Gradually increase the number once you begin to get more comfortable. 

Sample timeline: ongoing.

11. Update your interview skills

Lastly, prepare for interviews as you’re seeking new career opportunities. 

Your resume gets your foot in the door. The interview stage is where you secure the job. So, refine your interview skills and know how to present yourself in the best possible light. 

Here are a few ways to prepare for interviews:

• Use an interview prep tool. Tools like Rezi AI Interview can simulate industry-specific questions tailored to your job and resume, and provide you with feedback so you know how to improve your answers. 
• Research common interview questions. Familiarize yourself with the most common interview questions, like “tell me about yourself.” Practice answering these questions concisely with confidence. 
• Be ready for the difficult questions. An example of a difficult question is explaining gaps in employment. Have answers ready that frame your responses in a positive light, focusing on what you learned and how you’ve grown. 
• Prepare STAR examples. The STAR method (situation, task, action, result) is a great way to structure your answers to behavioral questions. So, have a few STAR examples ready. 
• Consider mock interviews. Try doing mock interviews with a friend, mentor, or career coach. This can help you get comfortable with an interview format, e.g., phone interviews.
• Research the company and role once again. Revisit the company job description and website. Make sure to truly understand their mission, values, recent news, and key challenges. 
• Prepare thoughtful questions. Have a list of unique questions to ask ready for the interviewer. Make it clear that you’re genuinely interested in the role and assessing whether the job is a good fit. 

Sample timeline: ongoing.

Total estimated timeline: 5–8+ weeks

How to Be Always Prepared for a Layoff

No one likes to think about the possibility of losing their job, but it’s crucial to be prepared for the worst. You’ll be far less anxious and more confident when you know that you’re ready for whatever comes your way. 

Here’s how to prepare yourself for any layoff that might happen in the future: 

• Build an emergency fund. Aim to save 3–6 months worth of essential living expenses in an easily accessible savings account. This gives you a cushion to fall back on. 
• Explore side hustles or alternative income streams. Having another source of income provides you with stronger financial stability and security. Consider freelance work, consulting, or other side projects that align with your skills.
• Build a personal brand on LinkedIn. Update your LinkedIn profile to reflect the most up-to-date information. Share relevant content, engage with industry peers, and establish yourself as a thought leader in your field. A strong personal brand can attract several career opportunities.
• Network consistently. Join relevant industry communities or events. Connect with other professionals, leaders, and potential employers in your field. A strong network can help you find new job opportunities faster. 
• Update your resume regularly. Make sure it’s in a condition where it can easily be tailored and submitted to any job descriptions you’re fond of.
• Stay ahead of industry trends. Keep an eye on trends, changes, and potential risks in your industry. Understanding the broader economic environment can help you anticipate potential layoffs.
• Continue developing your skills. Stay competitive by continually learning and improving your skills. Take advantage of professional development opportunities, certifications, and courses that keep you competitive.
• Be on the lookout for career opportunities. Keep an eye out for other opportunities that can further your career. 

Summary

Let’s summarize how to survive a layoff:

• Take time off to process everything that’s happened. This is key so that you can make decisions with a clear head and not act irrationally. 
• Check your employment agreement and make sure you know your rights and the benefits you’re entitled to.
• Have a financial plan by knowing how much you have in savings and what your monthly costs are. Next, establish a new budget where you cut down on non-essential expenses. 
• Try negotiating with your employer for the best possible outcome. Afterward, you can ask them to endorse you by writing you a recommendation letter and potentially referring you to their network for any job leads.
• Pinpoint what your long-term career goals are and what your next ideal job position looks like. 
• Update your resume or CV accordingly, and then let everyone in your network know that you’re seeking a new job opportunity.
• Apply to job descriptions that align with your skill set. As you’re doing this, polish your interview skills. 

Getting the news that you’ve been laid off is never easy.

And I know it might sound cliché, but there really is light at the end of the tunnel. To get there, it’s all about perseverance, putting yourself out there, and sending those tailored applications.

Plenty of people have turned their setbacks into success stories, and we want to help you do the same by providing you with all the tools, resources, and support that you need to land your next opportunity.

If you’re ready to update your resume or CV, try Rezi for free. Our AI resume builder makes writing resumes easier, so you can submit more applications in less time and effort. 

FAQs

What if I’ve been fired and not laid off?

First, look back at what’s happened. Try to discuss with your boss or employer to clarify why you’re being fired. Is it because of a mistake, underperformance, or something else outside your control?  Next, collect all evidence regarding your performance and accomplishments with the company. With all the information, plan for your next conversation. Try to negotiate better terms and to even potentially extend your timeline. Continue working hard and take ownership. To prepare, check your financial savings and create a new budget. Update your resume, keep an eye out for job openings, and try to seek endorsements from your current company to help reduce the friction of trying to secure a new job. Also, announce to everyone in your network that you’re looking for your next career opportunity. 

What are some signs to expect that a layoff is coming to my current company?

If your company is cutting costs and reducing budgets, it’s a sign of a pending layoff. Other warning signs include declining profits, employers having more talks of company restructuring, and if you notice that upper management isn’t being completely transparent about the company’s future. If teams are being significantly reorganized, projects are suddenly put on pause, and key employees are leaving, then take these as signs that layoffs are on the horizon. 

How to financially survive after being laid off?

First thing to know is how long you can sustain yourself without having a source of income. So, start by assessing your savings and emergency funds. Next, create a lean budget that prioritizes essential expenses like housing, utilities, and groceries. Cut back on non-essential spending, such as dining out and streaming services. From there, consider applying for unemployment benefits and explore any available severance pay or financial assistance programs. If possible, negotiate with your employer for extended benefits or freelance work. In the meantime, you can also consider temporary or gig work to bring in income while searching for a new job. 

How to emotionally survive after being laid off?

Allow yourself to process what’s happened. Acknowledge your feelings without judgment, and take some time off away from work. Go out for a walk, or spend time on a hobby that you genuinely enjoy. Lean on your support system for encouragement. Talk things out with a friend, family member, or trusted professional. Try self-care activities that help reduce stress, such as meditation. Stay positive by setting small, manageable goals each day. Remind yourself that a layoff is not a reflection of your worth or abilities. 

Does being laid off count as a traumatic experience?

Being laid off can indeed count as a traumatic experience. After all, it involves going through a significant loss. The sudden news can leave you feeling vulnerable, leading to emotional distress, especially when your job is your primary and only source of income. It's one of the most stressful events a person can face. However, everyone’s response is different—some may need more time to process the impact, and seeking support can be key for coping.

How to start over after being laid off?

Give yourself some time to fully process your emotions and what’s happened. Next, consider your rights and benefits. Understand what you’re entitled to. From there, re-evaluate your financial situation and cut down on non-essential spending. Afterward, consider negotiating and seeking endorsements or recommendations from your employer. When you’ve completed these steps, move onto the job search process. Outline the exact role you want and work on updating your resume or CV, making sure it’s tailored to the particular position you’re seeking. Inform your network that you’re looking for your next job opportunity for potential leads, and consistently apply to relevant job openings. At the same time, brush up on your interview skills. Be resilient and keep persevering. You’re more likely to get a response if you send more tailored job applications.