Getting laid off can be frightening. Knowing how to respond if it happens can take away some of the fear, especially as large companies continue to cut workers.
First off, it’s worth considering that right after it happens, you’ll likely be in shock. That’s why it might not be wise to sign forms your employer might give you — at least not before taking time to review them with a clear head. You need to process what has occurred.
Once you do that, you’ll be able to start your search for a new role. It’s best to treat the hunt like, well, a job. That doesn’t mean applying to everything you see; it just means having a plan.
That’s in part because the average unemployment in the US as of January 2026 lasted about 5.5 months, according to Labor Department data. Naturally, that varies by industry and role. Some job seekers report that it’s taken them far longer.
“I wouldn’t dillydally in a market like this, because it can take a long time,” Jennifer Schielke, the CEO of the staffing firm Summit Group Solutions, told Business Insider. “Get into the rhythm that you’re used to in the workplace.”
Here are three steps you’ll want to consider taking following a layoff:
As you process what you’ve gone through, think about your goals, said former recruiter Mike Peditto.
“In stressful situations, your panicked reaction is almost never as good as the decision you make after reflection, processing, and intention-setting,” he told Business Insider. That said, everyone’s timeout might look different.
“Some people take a month off to travel, and that’s great, but most people don’t have that cushion. Take whatever you can,” he said.
It’s important to assess your situation. That means considering the health of your industry, but also your own. The search process can be lonely, so you might consider joining a support group for laid-off workers.
You might also want to consider how you can invest in yourself. That’s especially important as AI threatens to upend an array of roles, especially for desk workers. Adding to your AI skills can make you more attractive to employers. Rather than prohibiting the technology in the interview process, some employers are now incorporating AI into how they assess job applicants to ensure their skills are up to date.
Even though the job market can make it feel unreasonable to be choosy, it’s worth reflecting on what you want from your next position.
It’s also worth looking at what roles and industries are growing; they might provide opportunities.
Taking practical steps can help you feel like you’re reasserting control during what’s often an uncertain time.
First, collect the severance paperwork your employer gave you. Ask any questions you might have. Take time to review the documents, and don’t forget that severance is sometimes negotiable.
It’s also important to apply for unemployment benefits right away, because those can take a while to process. You might also need to figure out how to handle any stock options, think about what to do with your 401(k), and how long your health insurance or COBRA coverage will last.
It’s also a good time to examine your spending and, if you haven’t, craft a budget. There are numerous financial survival tips after a layoff, including canceling any unnecessary subscriptions and seeing whether you can get price breaks on your phone and internet bills.
You might get that ick feeling thinking of yourself as a brand, but, however you frame it, the reputation you’ve built through your work history and other interactions matters. It’s a good time to reexamine your LinkedIn profile, add an “open to work” banner to attract recruiters, and let your connections know about your new status by drafting a layoff message.
If you’ve kept your résumé up to date, well done. In any case, you’ll probably want to tweak it now. Focus on your skills, accomplishments, and impact, rather than just job titles.
Once you’ve done that, you can start reaching out to your network. Maybe set up some coffees or quick chats with connections, because that’s often far more effective than panic-applying — what recruiters sometimes call “spray and pray” — to every job posting you find. Now is a good time to make a list of employers you want to target.
Give some thought to how you will talk about your layoff in interviews. Consider what employers are after. One CEO who had 800 applications for a role told Business Insider why three stood out.
You might be fortunate enough to use your layoff as a chance to take bold steps — like negotiating for higher pay or better benefits in your next role.
Have you been through a layoff? What made the difference when embarking on a job hunt? Business Insider would like to hear about your experience. Contact this reporter at [email protected].
Editors: Taylor Berman, Clementine Fletcher, Kashmira Gander, Peter Gelling, Julia Herbst, Manseen Logan, Tekendra Parmar, Debbie Strong, Jane Zhang
Reporters: Charissa Cheong, Jenna Gyimesi, Alyshia Hull, Sarah Jackson, Tess Martinelli, Sarah E. Needleman, Tim Paradis
