Getting laid off is one of the most stressful experiences you can go through. One day you’re working at your job, and the next day you’re told your position has been eliminated. It’s shocking, scary, and can make you feel lost. But here’s the truth: you can survive this, and you can come out stronger on the other side.
This guide will walk you through everything you need to know about surviving a layoff, from the first day to landing your next opportunity.
Take Care of Your Immediate Needs First
File for Unemployment Right Away
Don’t wait to file for unemployment benefits. Many people put this off because they feel embarrassed or think they’ll find a job quickly. File as soon as possible. These benefits exist to help people exactly like you, and you’ve paid into the system through your taxes.
The application process varies by state, but most states let you file online. You’ll need information about your previous employer, your work history, and why you left your job. Keep records of everything you submit.
Understand Your Severance Package
If your employer offered you a severance package, read every single word before you sign anything. Some packages come with conditions that might not be in your best interest. Common things to look for include:
- How much money you’ll receive and when
- Whether you’ll still get health insurance and for how long
- If there’s a non-compete clause that limits where you can work next
- Whether you’re signing away your right to sue the company
Consider having a lawyer review the agreement, especially if it seems complicated or if you’re being asked to sign quickly.
Deal with Health Insurance Immediately
Losing your job usually means losing your health insurance. You have a few options:
COBRA lets you keep your employer’s health insurance for up to 18 months, but you’ll pay the full premium yourself (which can be expensive). You have 60 days to decide if you want COBRA coverage.
The Healthcare Marketplace offers plans that might be cheaper than COBRA, especially if you qualify for subsidies based on your income. Visit Healthcare.gov to explore options.
A spouse’s plan might cover you if your partner has insurance through their job. Getting laid off counts as a qualifying life event, so you can join their plan outside of open enrollment.
Create a Financial Survival Plan
Calculate How Long Your Money Will Last
Sit down and do the math. How much money do you have in savings? What’s coming in from unemployment benefits or severance? What are your monthly expenses?
Be honest with yourself. This isn’t the time to guess or hope things work out. Write down every expense, from rent to streaming services. Knowing exactly where you stand will help you make smart decisions.
Cut Non-Essential Spending Now
You don’t need to eliminate everything fun from your life, but you do need to reduce spending quickly. Some easy cuts include:
- Subscription services you rarely use
- Eating out or ordering delivery
- Expensive coffee runs
- Gym memberships (if you can work out at home)
- Premium cable packages
Keep one or two small things that bring you joy. Cutting everything can make you feel deprived and depressed, which won’t help your job search.
Talk to Your Creditors
If you have credit card debt, student loans, or a car payment, call your lenders right away. Many companies offer hardship programs that can temporarily reduce your payments or give you a few months off from paying.
Don’t wait until you’ve missed payments. Being proactive shows responsibility and often leads to better outcomes.
Protect Your Mental Health
Accept That This Feels Terrible
Being laid off can trigger the same feelings as grief. You might feel shocked, angry, sad, or scared. All of these reactions are completely normal. You didn’t just lose a job. You lost your daily routine, your work friends, your sense of purpose, and your financial security.
Let yourself feel these emotions. Talk to friends and family. Consider seeing a therapist if you’re really struggling. Many therapists offer sliding scale fees, and some employee assistance programs provide free counseling even after you’ve been laid off.
Create a New Daily Routine
When you don’t have work to go to, days can blur together. This is dangerous for your mental health and your job search. Create a new routine that gives your days structure.
Wake up at a reasonable time. Get dressed (not in pajamas). Designate specific hours for job searching. Include time for exercise, seeing friends, or working on hobbies. Treat your job search like a job, but don’t let it consume every waking hour.
Stay Connected to People
Isolation is one of the biggest dangers of unemployment. Without coworkers to see every day, you might find yourself alone a lot. Make an effort to stay social:
- Meet friends for coffee or walks
- Join community groups or volunteer
- Attend networking events
- Call family members regularly
- Join online communities in your field
Connection isn’t just good for your mood. It’s also one of the best ways to find your next job.
Launch Your Job Search
Update Your Resume and LinkedIn Immediately
Your resume needs to reflect your most recent position and accomplishments. Use numbers and specific examples whenever possible. Instead of “managed social media,” write “increased social media engagement by 45% over six months.”
Your LinkedIn profile is equally important. Most recruiters search LinkedIn before anywhere else. Make sure your profile has:
- A professional photo
- A compelling headline
- A detailed summary
- Complete work history
- Skills and endorsements
- Recommendations from former colleagues
Tell Everyone You’re Looking
The best jobs often come through personal connections. Tell everyone in your network that you’re looking for work. This includes:
- Former colleagues and managers
- College friends and professors
- Family members
- People from professional organizations
- Your social media connections
Be specific about what you’re looking for. “I’m looking for a marketing role in the healthcare industry” is much more helpful than “I’m looking for anything.”
Apply Strategically
It’s tempting to apply to 100 jobs a day, but quality matters more than quantity. Focus on positions where you meet most of the requirements and where you’d genuinely want to work.
Customize each application. Use keywords from the job description in your resume and cover letter. Explain why you’re interested in that specific company, not just any company.
Consider Temporary or Contract Work
While you’re searching for your ideal job, temporary or contract work can help in several ways:
- It brings in money
- It keeps your skills sharp
- It gives you something current to put on your resume
- It might lead to a permanent position
- It helps you maintain confidence and routine
Don’t feel like accepting temporary work means you’ve failed. It means you’re resourceful.
Use This Time for Growth
Learn New Skills
Many free or low-cost resources can help you build skills that make you more employable:
- Coursera, edX, and Khan Academy offer free courses
- YouTube has tutorials on almost everything
- Your local library might offer free access to learning platforms
- Professional organizations often have member resources
Focus on skills that are in demand in your field. If you’re in marketing, learn about AI tools or data analytics. If you’re in design, master new software.
Consider a Career Pivot
Sometimes a layoff is an opportunity in disguise. If you’ve been unhappy in your field, this might be the perfect time to make a change.
Research growing industries and roles that match your transferable skills. Talk to people working in fields that interest you. You might discover options you never considered.
Take Care of Your Physical Health
Stress can wreak havoc on your body. Make your health a priority:
- Exercise regularly (walking counts)
- Eat nutritious meals
- Get enough sleep
- Limit alcohol
- Stay hydrated
You’ll interview better and think more clearly when you feel physically good.
Prepare for Interviews
Have Your Story Ready
Interviewers will ask why you left your last job. Practice a brief, honest answer that doesn’t bad-mouth your former employer. Something like: “The company went through restructuring and eliminated my position along with several others. While I was disappointed, I’m excited to find a role where I can contribute to long-term growth.”
Research Companies Thoroughly
Before any interview, spend time learning about the company. Read their website, recent news articles, and reviews from employees. Understand their products, mission, and challenges. This preparation will help you ask smart questions and show genuine interest.
Ask About Stability
After being laid off, it’s reasonable to want job security. Ask thoughtful questions about the company’s financial health, their plans for growth, and how the pandemic or economic changes have affected their business.
Know Your Rights
Understand Why You Were Laid Off
Companies must have legitimate reasons for layoffs. If you suspect you were laid off because of discrimination (based on age, race, gender, disability, etc.), document everything and consider consulting an employment lawyer.
Keep Records of Everything
Save all emails, documents, performance reviews, and communications related to your layoff. If you need to file for unemployment, appeal a denial, or take legal action, these records will be crucial.
Moving Forward
Being laid off is not a reflection of your worth or abilities. Many incredibly talented people lose jobs due to factors completely outside their control like economic downturns, company mergers, or budget cuts.
This experience will test you, but it will also teach you resilience. You’ll learn things about yourself, develop new skills, and likely end up in a position that’s better than where you were before.
Take it one day at a time. Celebrate small victories like a good networking conversation or an interview request. Be patient with yourself on the hard days. Keep moving forward, even when progress feels slow.
You will get through this. Thousands of people survive layoffs every single day and go on to build successful, fulfilling careers. You can too.
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