What to Do When You Get Laid Off: Complete Guide (2025)

Getting laid off is one of life's most stressful experiences. Whether you saw it coming or it was a complete shock, you're probably feeling overwhelmed right now. Take a breath. You're going to be okay.

This guide walks you through everything you need to do after a layoff—from the first 24 hours through finding your next opportunity.

First Things First: Don't Panic

Before we dive into the practical steps, here's what you need to know:

• Layoffs are not personal failures. They're business decisions that happen to talented people every day.
• You have time. Despite how urgent everything feels, most things can wait a day or two.
• You have options. There are resources, protections, and support systems available to you.

The First 24 Hours

The day you're laid off, focus only on these essential tasks:

1. Don't Sign Anything Yet

Your employer may present you with a severance agreement. You typically have 21 days to review it (45 days if you're over 40 and it's a group layoff). Don't feel pressured to sign immediately.

What to do:

• Accept the paperwork
• Say "I'd like to review this before signing"
• Ask when the deadline is for returning the signed documents

2. Get Important Information

Before you leave the building (or the video call), make sure you know:

• Your last day of employment
• When your health insurance ends
• When you'll receive your final paycheck
• What happens to your 401(k)
• Who to contact with questions

3. Secure Your Personal Items

Physical items:

• Personal belongings from your desk
• Any items you need to return (laptop, badges, keys)

Digital items (if allowed):

• Personal files stored on work devices
• Contact information for colleagues you want to stay in touch with
• Copies of performance reviews (check your email)
• Work samples that belong to you (check your employment agreement)

4. File for Unemployment

Yes, file immediately—even if you're receiving severance. Most states have a one-week waiting period before benefits begin. The sooner you file, the sooner you'll receive your first payment.

How to File for Unemployment →

The First Week

Once the initial shock has passed, tackle these important tasks:

1. Review Your Severance Package

Now it's time to carefully review what you've been offered:

Standard severance components:

• Severance pay (typically 1-2 weeks per year of service)
• Continuation of health benefits
• Outplacement services
• Payment for unused PTO

Red flags to watch for:

• Non-compete clauses that limit your job search
• Non-disparagement agreements
• Releases that seem too broad
• Tight deadlines to sign

How to Negotiate Severance →

2. Make Health Insurance Decisions

You typically have 60 days to decide on COBRA, but coverage is retroactive—so you can wait and only pay if you need care.

Your options:

1. COBRA - Continue your employer's plan (expensive but same coverage)
2. ACA Marketplace - Often cheaper, losing your job qualifies you for special enrollment
3. Spouse's plan - If available
4. Short-term insurance - Limited coverage, lower cost

COBRA vs ACA: Which to Choose →

3. Handle Your 401(k)

You generally have four options:

1. Leave it where it is (if balance is over $5,000)
2. Roll it into your new employer's plan (when you get one)
3. Roll it into an IRA
4. Cash out (avoid this—you'll pay taxes and penalties)

Don't rush this decision. Your money is safe where it is.

4. Create an Emergency Budget

Calculate exactly how long your savings (plus severance and unemployment) will last.

Immediate expenses to cut:

• Subscriptions you don't need
• Dining out
• Non-essential shopping

Expenses to keep:

• Health insurance
• Debt minimum payments
• Essential utilities

Budget Planning Guide →

The First Month

With urgent matters handled, shift focus to your job search:

1. Update Your Resume

Your resume needs to reflect your most recent accomplishments. Focus on:

• Quantifiable achievements (increased revenue by X%, managed team of Y)
• Skills that are in demand
• Keywords from job descriptions in your field

Resume Tips After Layoff →

2. Optimize Your LinkedIn Profile

Recruiters live on LinkedIn. Make sure your profile is:

• Complete and up-to-date
• Set to "Open to Work" (visible to recruiters only if preferred)
• Keyword-optimized for your target roles

LinkedIn Optimization Guide →

3. Start Networking

Most jobs are found through connections, not job boards. Reach out to:

• Former colleagues
• Industry contacts
• College alumni
• Friends and family

Script for reaching out:

"Hi [Name], I hope you're doing well. I was recently laid off from [Company] and am exploring new opportunities in [field]. I'd love to catch up and hear about what you're working on. Would you have 15 minutes for a call this week?"

Networking Guide →

4. Establish a Routine

Structure helps with both productivity and mental health:

• Wake up at a consistent time
• Get dressed (yes, really)
• Block time for job searching, networking, and skill-building
• Include exercise and breaks
• Set boundaries—don't job search 24/7

Ongoing: Take Care of Yourself

Job searching is emotionally exhausting. Don't neglect your mental health:

• Allow yourself to grieve. Losing a job is a real loss.
• Stay connected. Don't isolate yourself.
• Move your body. Exercise helps manage stress.
• Limit news consumption. Doom-scrolling won't help.
• Celebrate small wins. Applied to 5 jobs? That's progress.

Mental Health Resources →

What to Say in Interviews

When asked about your layoff, keep it simple and positive:

"My position was eliminated as part of a company restructuring. I'm proud of what I accomplished there, including [specific achievement]. Now I'm excited to bring those skills to a new opportunity."

Key points:

• Don't badmouth your former employer
• Keep the explanation brief
• Pivot to what you're looking for
• Show enthusiasm for the opportunity

Interview Preparation →

You Will Get Through This

A layoff feels like the end of the world, but it's often the beginning of something better. Many people look back on their layoff as a turning point that led to a better job, a career change they'd been putting off, or a newfound appreciation for work-life balance.

Take it one day at a time. Use the resources on this site. And remember: your worth is not defined by your employment status.

Quick Reference Checklist

Day 1

• [ ] Don't sign severance agreement (review it first)
• [ ] Get final paycheck and benefits information
• [ ] Secure personal items and contacts
• [ ] File for unemployment

Week 1

• [ ] Review and negotiate severance if appropriate
• [ ] Make health insurance decision
• [ ] Review 401(k) options
• [ ] Create emergency budget

Month 1

• [ ] Update resume
• [ ] Optimize LinkedIn profile
• [ ] Start networking
• [ ] Establish daily routine
• [ ] Begin applying to jobs

Need more help? Start with our First 24 Hours Checklist for a detailed day-one action plan.