A layoff, especially if unexpected, can be devastating. You may have financial or health concerns on top of feelings of grief or identity loss. With so many unknowns, it can be difficult to plan for the future.
Before you do anything, "pause," says Octavia Goredema, a career coach and the author of the book Prep, Push, Pivot: Essential Career Strategies for Underrepresented Women. "Give yourself time to process your emotions."
Keep in mind that getting laid off has nothing to do with your worth. "This is a business problem, not a you problem," Goredema says. "This moment will not define you, and there's opportunity waiting for you."
When you're ready, Goredema has practical tips on how to proceed. Here's a checklist of the most important steps to take first, so you can worry less about your logistics and focus more on the next opportunity.
Step 1: Take your time in wrapping things up with your employer.
✅ Review your exit paperwork thoroughly. While it depends on your role, you'll likely receive paperwork related to vacation payouts, benefits information or severance packages. You could be asked to sign a noncompete agreement or nondisclosure agreement.
"You might not have seen this type of paperwork before," says Goredema, so "read through everything carefully."
✅ If you need more time to review your paperwork, ask for it. "You might feel, 'If I don't sign this quickly, I might not get that money.' But if you sign something, you are then bound by those terms," she says.
✅ Negotiate your terms. Goredema coached one person who rushed to sign their paperwork and discovered, after the fact, that they could've negotiated a longer time frame to receive health care benefits. So take the time to ask questions, and consider your options.
✅ Get a second opinion. If you are concerned that you have been wrongfully terminated, consult an employment attorney, Goredema says. For a cost, an attorney can provide legal counsel and help determine whether your rights were violated.
Step 2: Secure benefits and health care.
✅ Apply for unemployment insurance as quickly as possible. This state-run benefits program will pay you a weekly amount based on how much you earned before filing for unemployment. You qualify for it if you lose your job through no fault of your own. This extra payment can make a big difference in your financial security, Goredema says.
Each state manages its own unemployment insurance program, so "clarify what your specific state offers and for how long," Goredema says. Most states provide compensation for up to 26 weeks, but a handful offer less than that, including Arkansas, Florida and Michigan.
✅ Look into additional benefits. You may also qualify for other government benefits like food assistance or free job training. Use this benefit finder to see what programs are available to you.
✅ Find a health care alternative. If you relied on your job for health insurance, you might be able to continue that plan. Most employers will offer Consolidated Omnibus Budget Reconciliation Act (COBRA) health coverage, which gives you the right to keep your employer-provided health insurance for a limited period after a layoff.
"But that can be really expensive," Goredema says. The plan may require you to pay the full premium out of pocket, plus a 2% administrative fee.
If that won't work for you, there are other options. Look at what the Health Insurance Marketplace offers in your state. This is a government service that lets you compare and enroll in different coverage plans. You can also investigate programs like Medicaid, which provides free or low-cost health coverage to eligible low-income people.
Step 3: Plan your job search carefully.
✅ Take a moment to think about what you want to do next. Reflect on your last job: What did you like? What did you dislike? What does your next job ideally look like? Consider compensation, the size of the company, proximity to home or the type of work you're doing.
Your answers to these questions will help you focus your search and weigh your offers down the line, Goredema says.
✅ Calculate your likely timeline for finding your next job. This will help you budget accordingly and come up with a contingency plan in case your timeline needs to be extended.
"Think about how long it took you to find your last role," Goredema says. To be on the safe side, "add another month or two months to that."
Your timeline also depends on your industry. "If the sector you work in is being [affected] by layoffs and if competition feels high, you may need to factor in extra time."
Step 4. Create a financial plan.
✅ Use your timeline to create a monthly budget. If you estimate it will take, say, six months to find your next job, divide your savings based on a six-month time frame.
Factor in emergency savings, severance pay, unemployment benefits or income from a partner or family member. This will help you stay on track financially as you search for a job, Goredema says.
Step 5: Plan for contingencies … and dream a little!
✅ Come up with a plan B. If you don't find a job within your time frame, consider other creative ways to make an income while you continue your search, Goredema says. That might mean looking outside your industry, doing gig work like dog walking or making food deliveries, or going to a temp agency to find entry-level work.
✅ Don't feel bad if you have to pursue your backup plan. "Five years from now, you'll look back on this time as an opportunity where you were able to problem-solve," Goredema says. "You'll see it in a different perspective."
✅ Challenge what you truly want from your career. Is there a passion you've always dreamed of pursuing or a hobby you want to invest in?
Goredema remembers one client who went through multiple layoffs. Eventually, "he got to the point where he was like, 'I can't do this anymore,'" she says. He left his career in graphic design and started up his own gardening business instead. "And he's so happy. He hasn't looked back."
This story was edited by Malaka Gharib. The visual editor is Beck Harlan. We'd love to hear from you. Leave us a voicemail at 202-216-9823, or email us at LifeKit@npr.org.
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