Facing an unexpected layoff can feel overwhelming. Being fired from job can be an life-changing experience- especially if you’re not where you thought you’d be financially or career-wise. I’ve experienced this personally, and have had so many family and friends who have been let go from their jobs- whether their position was ‘being eliminated’ or if the company ‘decided to go in a different direction’- the feeling sucks big time. And while it’s normal to feel blindsided, taking specific actions can help stabilize your finances, mental health, and next steps. Here’s a guide with ten priority steps that you (or someone you know) can take to help navigate this challenging time.
10 Steps to Take if You’ve Experienced a Layoff
Confirm Your Severance Package Details. If your employer offers severance, this can be a crucial bridge. Verify how much you’re eligible for, when you’ll receive it, and whether you’ll still receive other benefits (like healthcare) temporarily. Some companies offer additional severance benefits if you negotiate; don’t hesitate to ask, especially if you’ve had a long tenure or held a senior role.
File for Unemployment Benefits. Unemployment insurance can be a financial lifeline. Immediately file with your state’s unemployment office, as there may be a waiting period before you start receiving payments. Many states allow you to file online, and in some cases, you can also track your payment status. Ensure you stay on top of any weekly requirements to continue receiving benefits.
Review and Trim Your Budget. Now’s the time to take a hard look at your finances. Focus on trimming non-essential spending: consider pausing subscriptions, cutting back on dining out, and downgrading services. Look at expenses you may be able to reduce, like cell phone plans, streaming services, gym memberships and groceries. Setting a budget for essentials like rent, food, utilities, and transportation will keep you covered while preserving savings.
Take Stock of Your Health Insurance Options. With job loss often comes the end of employer-sponsored health insurance. Options like COBRA allow you to stay on your previous plan temporarily, but it can be pricey. Alternatively, explore marketplace options through Healthcare.gov, which may be more affordable. Losing your job qualifies as a “life event,” so you should be eligible for a special enrollment period outside of the usual window.
Prioritize Emergency Savings for Essentials. If you have an emergency fund, now’s the time to use it wisely. Prioritize covering essential bills like housing, utilities, and groceries, and keep discretionary spending to a minimum. If you don’t have emergency savings, try to preserve any cash you have on hand, holding back on non-essential purchases until you have more income stability.
Set Up Side Gigs or Freelance Work. If you have skills or experience that can translate to freelance work, setting up a side gig can help bridge the gap in your income. Platforms like Upwork, Fiverr, or TaskRabbit can offer opportunities. You might also check with former clients or professional contacts for project-based work, which may come through faster than a traditional job search.
Update and Activate Your LinkedIn and Network. Your network can be huge during a job transition. Update your LinkedIn profile and let your contacts know that you’re looking for new opportunities (if you feel comfortable). Write a brief post or reach out personally to former colleagues, mentors, and industry contacts. They may have leads on job openings or freelance opportunities, so don’t hesitate to reach out.
Use Your Free Time to Build New Skills. If possible, use this time to develop new skills or certifications that can make you more marketable. Platforms like LinkedIn Learning, Coursera, and edX offer affordable or even free courses in many fields. Strengthening your skills can boost your confidence, keep you productive, and help you stand out in the job market.
Practice Mindfulness and Maintain a Routine. It’s normal to feel down or frustrated during this period, and finding ways to care for your mental health is important. Establish a daily routine that includes physical activity, meal times, and hobbies that give you joy. Try practicing mindfulness or meditation to help you stay grounded and manage stress. Maintaining structure can help you feel more in control of your situation.
Remember Your Value – Keep a Positive Perspective. Losing a job doesn’t define you. Remind yourself of the skills, experience, and value you bring to the table. A layoff often says more about company circumstances than personal performance. Reflect on past successes, update your resume with recent achievements, and keep a hopeful outlook – the right opportunity is still out there.
Losing a job unexpectedly is tough, but taking these practical steps can help you gain control over your financial, mental, and emotional well-being. Moving through this period intentionally will make it easier to weather the storm and transition into a new role that’s the right fit for your future.