What To Do After a Layoff
A complete, no-BS guide
Getting laid off is disorienting. This guide covers everything you need to do — organized by when you need to do it. Bookmark this page.
Day 1 — The Day It Happens
You just got the news. Here's what to do before you leave the building.
Don't sign anything on the spot
Your employer may hand you a severance agreement and pressure you to sign immediately. You are not required to. Federal law (OWBPA) gives you at least 21 days to review — 45 days if you're over 40 or part of a group layoff. Say "I need time to review this" and take the document home.
Ask for everything in writing
Get your termination letter, severance offer, benefits continuation details, final paycheck date, and PTO payout policy in writing before you leave. If they only tell you verbally, follow up with an email summarizing what was said.
Save your personal files — nothing else
Forward any personal documents (pay stubs, tax forms, performance reviews, your own work samples if allowed by your agreement) to your personal email. Do NOT take proprietary company data, client lists, or source code. That can create legal liability.
Get your manager's personal contact info
Your work Slack and email will be cut off soon. Get your manager's personal email or phone number so you can request a reference later. Same for close colleagues.
Check your stock options / RSUs immediately
If you have unvested equity, ask HR exactly what happens to it. Vested stock options typically have a 90-day exercise window after termination — miss it and they're gone. This can be worth tens of thousands of dollars.
First Week — Get Your Safety Net in Place
The clock is ticking on several deadlines. Handle these before anything else.
File for unemployment — today, not next week
File the day after your last day of work. Most states have a 1-week unpaid waiting period, so every day you delay is a day you're not getting paid. Filing is done online in every state and takes 15-30 minutes. You'll need your SSN, employer's name/address, and dates of employment.
Find your state's filing site →Understand your health insurance options
You have three paths: (1) COBRA — continues your exact employer plan but you pay the full premium (avg $650/mo individual, $1,850/mo family). You have 60 days to elect and it's retroactive, so you can wait and only elect if you need care. (2) ACA marketplace — often 50-70% cheaper than COBRA. A layoff is a qualifying life event giving you 60 days to enroll. (3) Spouse's plan — a layoff is a qualifying event for their employer plan too.
Compare options at healthcare.gov →Review the severance agreement with an attorney
Employment attorneys typically charge $200-500 to review a severance agreement. This is almost always worth it. They'll identify what you're giving up (usually the right to sue), whether the terms are standard, and what you can negotiate. Many offer free 15-minute consultations. Look for attorneys who specialize in employee-side employment law, not employer-side.
Negotiate your severance
Severance is almost always negotiable, especially if you're being asked to sign a release of claims. Common things to negotiate: more weeks of pay, extended health coverage (employer pays COBRA for X months), outplacement services, removal of non-compete clauses, a neutral reference agreement, accelerated vesting of equity. The worst they can say is no.
Check your final paycheck and PTO payout
Verify your final paycheck includes all owed wages. In many states (CA, CO, IL, MA, NY, and others), employers are legally required to pay out unused PTO/vacation. If your state requires it and they don't pay, that's a wage claim you can file with your state labor department.
Finances — Protect Your Money
A layoff is a financial emergency. Treat it like one.
Cut non-essential spending immediately
Cancel subscriptions you don't need, pause gym memberships, reduce dining out. The goal is to extend your runway as long as possible. Even small cuts add up — $200/month in savings buys you an extra month of runway over 6 months.
Don't touch your 401(k)
Cashing out your 401(k) triggers a 10% early withdrawal penalty plus income tax (potentially 30-40% total). Instead, leave it where it is or roll it into an IRA. If you absolutely need cash, a 401(k) loan from a new employer's plan or a Roth IRA contribution withdrawal (contributions only, not earnings) are less destructive options.
Build a bare-bones budget
List your non-negotiable monthly expenses: rent/mortgage, utilities, food, insurance, minimum debt payments, transportation. This is your "survival number." Compare it to your unemployment benefits + severance to know exactly how many months you have.
Calculate your runway →Understand how severance affects unemployment
In some states, receiving severance delays or reduces your unemployment benefits. In others, it doesn't. This varies significantly by state and by how the severance is structured (lump sum vs. salary continuation). Check with your state unemployment office before assuming you can collect both simultaneously.
Look into hardship programs
If money is tight: contact your mortgage lender about forbearance, call credit card companies about hardship programs (many will lower your rate or defer payments), check if your utility company offers assistance programs, and look into local food banks. There's no shame in using these — they exist for exactly this situation.
Health & Mental Health
A layoff is one of the most stressful life events. Take care of yourself.
It's not your fault
Layoffs are a business decision, not a performance review. Companies lay off entire teams, departments, and divisions for financial reasons that have nothing to do with individual performance. The best engineers at the best companies get laid off. Internalize this.
Use your remaining health benefits
If you have dental, vision, or therapy appointments you've been putting off, schedule them before your coverage ends. Get prescriptions refilled for 90 days if possible. If you're in therapy, ask your therapist about sliding-scale rates for when your insurance lapses.
Maintain a routine
The sudden loss of structure is one of the hardest parts. Set a wake-up time, get dressed, exercise, and dedicate specific hours to job searching. Treat the job search like a job — but also give yourself permission to take breaks and process.
Talk to people
Don't isolate. Tell your close friends and family what happened. Join communities of people going through the same thing. You'd be surprised how many people have been laid off and are willing to help.
Join anonymous discussions →Job Search — Start Smart
You don't need to apply to 500 jobs. You need to apply to the right ones.
Update LinkedIn before you start applying
Turn on "Open to Work" (you can make it visible only to recruiters). Update your headline to reflect what you're looking for, not your old title. Write a brief post about your layoff — these consistently get massive engagement and surface you to recruiters. People want to help.
Reach out to your network first
Referrals are 5-10x more effective than cold applications. Message former colleagues, managers, and friends at companies you're interested in. Be specific: "I'm looking for senior backend roles at Series B+ startups in fintech. Do you know anyone I should talk to?" Vague asks get vague responses.
Use the referral board →Quality over quantity
Applying to 50 jobs a day with the same resume is less effective than applying to 5 jobs with tailored resumes and cover letters. For each application, customize your resume to match the job description's keywords and requirements. Many companies use ATS (applicant tracking systems) that filter by keyword match.
Don't undersell yourself on compensation
Being laid off doesn't mean you should accept a pay cut. Research market rates on levels.fyi, Glassdoor, and Blind. If a company asks for your salary expectations, give a range based on market data, not your previous salary. In many states, employers can't ask for your salary history.
Consider contract/consulting work
If the job search is taking longer than expected, contract work can bridge the gap. It pays well (often higher hourly than full-time), keeps your skills current, and sometimes converts to full-time. Check Toptal, Braintrust, or reach out to staffing agencies in your field.
Legal — Know Your Rights
You have more rights than you think.
WARN Act
The federal WARN Act requires employers with 100+ employees to give 60 days' notice before mass layoffs (50+ employees at a single site). If they didn't, you may be entitled to 60 days of back pay and benefits. Many states have their own WARN laws with stricter requirements (California's is 75+ employees, New York's is 25+).
Check WARN notices for your company →Discrimination protections
If you believe you were selected for layoff based on age (40+), race, gender, disability, pregnancy, or other protected characteristics, that's illegal even in a mass layoff. Red flags: the layoff disproportionately affected one demographic, you were replaced by someone younger/cheaper, or you were the only one in your group laid off shortly after a complaint.
What you're signing away in the severance release
Most severance agreements include a "release of claims" — you give up the right to sue the company in exchange for the severance payment. This is legal and standard, but understand what you're giving up. You typically cannot release claims for unpaid wages, workers' comp, or unemployment benefits. An attorney can explain exactly what the release covers.
Non-compete agreements
The FTC has moved to ban most non-competes, but enforcement varies. Many non-competes are unenforceable anyway, especially in California (where they're void), Colorado, Minnesota, North Dakota, and Oklahoma. Even in states where they're enforceable, courts often narrow them. Don't assume your non-compete will actually prevent you from working — consult an attorney.
Unemployment appeals
If your unemployment claim is denied (rare for layoffs, but it happens), you have the right to appeal. Common reasons for denial: the employer contests it claiming you were fired for cause, or there's a paperwork error. Appeals are usually a phone hearing where you explain your side. You don't need a lawyer for this, but you can bring one.
Track layoffs at your company
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