A layoff can turn an ordinary day into one you’ll never forget. One moment you’re answering emails or thinking about lunch plans. The next, you’re being told your role is ending. Even if you saw signs of it coming, the actual moment can still land like a punch — quick, disorienting, and a little surreal.

If you’re reading this because it’s happened to you, know that you’re not alone — and you’re not powerless. The hours and days that follow a layoff are about more than just scrambling for your next paycheck. They’re about protecting what you have, making decisions that won’t box you in later, and setting yourself up for a next chapter that’s not just a reaction, but a step forward.

This isn’t a “ten steps to bounce back” list. This is a guide to understanding what matters most right now, why it matters, and how to approach it without letting panic run the show.

First, pause before you move.

When you’re told you no longer have a job, your brain kicks into overdrive. One part starts spinning worst-case scenarios, another part wants to leap into action — update the résumé, send out LinkedIn messages, maybe even start withdrawing money from savings. That urgency is natural, but acting too quickly can lead to mistakes that cost you financially and emotionally.

If you can, give yourself at least a couple of days before making any big decisions. Use that time to let the news settle and to think clearly about what comes next. Jot down every question that comes to mind — from “When does my health insurance end?” to “How long do I have to decide about severance?” — so you can get answers in a focused way instead of trying to remember details later.

Talk to one or two people you trust, not for quick fixes, but for perspective. And if social media fuels anxiety or comparison, give yourself permission to log out for a bit. It’s not avoidance; it’s creating space to think.

Secure the details while you still can.

Before you lose access to company systems, collect everything you’ll need in the weeks ahead. That starts with your severance agreement, if you’re offered one. Read it carefully — the dollar amount is just one piece of the picture. There may be clauses that limit where you can work next, rules about contacting former colleagues or clients, or deadlines for signing. If the offer is substantial or the language is restrictive, having an employment attorney review it could be worth the cost.

Check your final paycheck to make sure it reflects everything you’re owed: unused vacation time, accrued sick pay if your state requires it, and any commissions or bonuses earned before your last day. Ask for a written breakdown so there’s no confusion later.

Your benefits documents are just as important. Find out exactly when your health coverage ends, what your COBRA options are, and whether life or disability insurance can be continued on your own. These dates are critical because missing a deadline can mean losing coverage entirely.

Before your email account is shut down, save personal contact details for colleagues you want to stay in touch with, and download any performance reviews, project summaries, or work samples you’re allowed to take. Those records can make future interviews much easier.

Tackle health insurance quickly — the clock is ticking.

Health coverage is often the most time-sensitive issue after a layoff, with hard deadlines that can’t be extended. If your employer had 20 or more employees, COBRA lets you stay on your current plan for up to 18 months. You’ll have 60 days to decide, and if your termination was involuntary, you may qualify for premium subsidies. The catch? COBRA is expensive — you’ll be paying the entire premium yourself — but it does let you keep the same doctors, prescriptions, and coverage you already know.

If you’re married and your spouse has coverage through their employer, you can join that plan without waiting for their open enrollment period. You’ll typically have 30 days from the date you lose your job to enroll.

Another option is the Health Insurance Marketplace, which offers a 60-day special enrollment window after job loss. Depending on your income for the year, you might qualify for subsidies that significantly reduce monthly premiums. Marketplace plans vary widely, so compare them against COBRA and your spouse’s plan in terms of both cost and coverage.

And if you’re over 65 and not yet enrolled in Medicare, you’ll have an eight-month special enrollment period to sign up for Part A and Part B. That window starts the month after either your employment ends or your employer coverage ends — whichever comes first.

If you know your coverage will be ending soon, try to schedule any medical, dental, or vision appointments you’ve been putting off. Fill prescriptions. Take care of preventative care now, while it’s still covered.

Get a clear picture of your financial runway.

Once you’ve addressed health insurance, turn to your finances. Start by calculating your essential monthly expenses — housing, utilities, groceries, insurance, transportation — and see how many months your emergency savings can cover. That number isn’t just math; it’s your timeline for finding your next source of income without financial strain.

Go through your budget and trim where you can. This isn’t about cutting all joy from your life, but pausing non-essential spending like streaming services you rarely watch, subscription boxes, or frequent takeout. Even $200 a month in savings stretches your runway meaningfully.

File for unemployment benefits as soon as possible. Most states have a waiting period, and payments don’t start until your claim is processed. Benefits typically last about 26 weeks, though in certain conditions, extensions may be available. Even if you expect to find work quickly, applying early keeps the safety net in place.

If debt payments will be tight, call lenders before you miss a due date. Many have hardship programs that temporarily reduce or pause payments, and you’ll have more options if you make the request while your account is in good standing.

If possible, consider ways to bring in interim income — freelancing, consulting, part-time work. It’s not just about the money; it keeps you connected to your industry and can even lead to full-time opportunities.

Make thoughtful decisions about retirement accounts and stock options.

Your retirement savings don’t disappear with your job, but the choices you make now can affect your long-term security. You can often leave your 401(k) where it is or roll it into an IRA. Rolling over gives you more control over investments, but leaving it in the plan might make sense if the fees are low and the investment options are strong. Avoid cashing it out unless you have no other choice — early withdrawals can trigger income tax and, if you’re under 59½, a 10% penalty.

If you left the company in or after the year you turned 55 (or 50 for certain public safety workers), you may qualify for penalty-free withdrawals from your 401(k), though taxes will still apply. If you had a loan against your 401(k), check the repayment rules — many plans require the balance to be repaid by your tax filing deadline for that year, or it will be treated as a taxable distribution.

Stock options need quick attention. Unvested options are usually forfeited, but vested options typically must be exercised within a short window — often just 90 days. Miss that deadline, and they’re gone. If you held private company stock, review any buyback or repurchase clauses that could affect its value.

Look at other assets and credit lines before you need them.

Some resources are easier to tap while you’re still employed. If your employer offered an emergency-linked savings account, find out whether you can roll it into a Roth IRA or other designated account — many allow withdrawals without taxes or penalties.

A home equity line of credit (HELOC) can be a low-interest fallback, but approvals are harder to get after a job loss. If you think you might need one, apply before your employment officially ends.

If you have a Roth IRA, remember that you can withdraw your contributions — but not the earnings — at any time, tax- and penalty-free. And if you have a deferred compensation plan, review the documents now so you understand the payout schedule and options before it starts distributing.

Consider tax moves while your income is lower.

A layoff often means your income for the year will be significantly lower than usual — and that can create opportunities. This might be the right time to convert some pre-tax retirement savings into a Roth IRA, paying tax at a lower rate than you would in a higher-income year.

If you have investments in a taxable account, selling appreciated assets this year might qualify you for the 0% capital gains tax rate, depending on your total income. And if your earnings now fall below certain thresholds, you may become eligible to make deductible IRA contributions or direct Roth IRA contributions you couldn’t make before.

Handle the career logistics that can shape your search.

Before you throw yourself into job applications, review any agreements you signed with your former employer. Non-compete clauses, non-solicitation terms, or confidentiality provisions can affect how and where you look for work. Violating them, even accidentally, can have serious consequences.

If your employer offers outplacement services — such as résumé help, interview coaching, or introductions to recruiters — take them up on it. These programs are often underused, and they can make a real difference in shortening your job search.

Update your contact information everywhere it matters: professional organizations, licensing boards, alumni networks, and your online profiles. Refresh your LinkedIn page to highlight your skills and achievements — not just your job titles — and consider adding a line about being open to new opportunities.

Map your next three months.

Breaking this transition into stages makes it less overwhelming. In the first month, focus on stability: secure health insurance, apply for unemployment, gather documents, and update your professional materials. In the second month, widen your job search and start networking actively — not just online, but in person at industry events or meetups. By the third month, evaluate what’s working and what’s not, and consider whether additional training, certification, or even a pivot to a different role or industry might make sense.

You’re not starting from scratch.

It’s easy to feel like you’ve been dropped back at square one, but you haven’t. You still carry every skill, every achievement, and every connection you’ve built so far. This is a chapter — not the whole book — and with deliberate, informed action now, you can write the next one in a way that serves you long after this moment has passed.

If you’d like help navigating the financial decisions that come with a layoff — from understanding your severance to protecting your investments and planning your next move — we can walk through them together. Schedule a conversation today and take your next step forward with clarity and confidence.