Getting laid off can feel overwhelming and stressful. If you’ve heard rumors at work or received official notice, it’s normal to worry about your finances, next steps, and the uncertainty ahead. But taking smart action now can help protect you, your family, and your future. Whether you have days or weeks before your last day, these steps will help you navigate the transition. By knowing what to do if you’re about to be laid off, you can reduce the shock and start planning for what comes next.
1. Review Your Severance Package and Benefits
If you’re about to be laid off, your employer may offer a severance package. This could include extra pay, continued health insurance, or unused vacation payouts. Don’t just sign the paperwork—take time to read the details. Make sure you understand how much severance pay you’ll receive, when it will be paid, and if there are any conditions attached.
Ask your HR department about COBRA or other options for continuing your health coverage. If you have a 401(k) or other retirement plan, clarify what happens to those accounts. Sometimes, negotiating your severance is possible, especially if you have a long work history or unique skills. If you’re unsure, consider speaking with a lawyer or financial advisor to make sure you’re getting what you deserve.
2. File for Unemployment Benefits Promptly
One of the most important steps if you’re about to be laid off is to apply for unemployment benefits. Each state has its own process, so act quickly. The sooner you file, the sooner you’ll receive payments that can help cover your bills. Gather necessary documents, such as your Social Security number, pay stubs, and details of your job separation, before starting the application.
Keep in mind, unemployment benefits usually don’t replace your full salary, but they do provide a financial safety net. If you have questions about eligibility or the process, check your state’s unemployment website or reach out to your local workforce office for guidance.
3. Assess Your Finances and Cut Expenses
When you know you’re about to be laid off, review your household budget right away. Calculate how long your savings, severance, and unemployment will last. List all your monthly expenses and identify areas where you can cut back. This might mean pausing non-essential spending, canceling subscriptions, or negotiating bills.
Prioritize payments for essentials like housing, utilities, groceries, and insurance. If you have debt, contact lenders to ask about hardship programs or payment deferrals. Making a plan now will help you stretch your resources and avoid financial stress in the months ahead.
4. Update Your Resume and Start Networking
Don’t wait until after your last day to think about your next job. If you’re about to be laid off, update your resume and LinkedIn profile while you still have access to your work records and contacts. Highlight your achievements, skills, and recent projects. Reach out to former coworkers, mentors, and industry peers to let them know you’re looking for new opportunities.
Networking is one of the most effective ways to find a new job. Attend industry events, join professional groups, and consider informational interviews. Many people find their next role through referrals, so don’t be shy about asking for introductions or recommendations.
5. Take Care of Your Mental and Physical Health
The emotional impact of being laid off can be just as challenging as the financial side. If you’re about to be laid off, give yourself time to process your feelings and talk to supportive friends or family. Stress, anxiety, and uncertainty are normal, but you don’t have to face them alone.
Maintain healthy routines—eat well, get enough sleep, and exercise regularly. If you’re struggling, consider reaching out to a mental health professional. Many communities offer low-cost counseling or support groups for people in transition. Remember, taking care of yourself will help you stay resilient and focused as you move forward.
Moving Forward After a Layoff
Knowing what to do if you’re about to be laid off gives you the power to take control during a difficult time. By reviewing your severance, filing for unemployment, managing your finances, and updating your job search materials, you’ll be better prepared for what’s next. Remember to reach out for help if you need it, and treat this transition as a chance to re-evaluate your goals. Being proactive now can make a big difference in your financial stability and emotional well-being.
Have you ever faced a layoff? What steps helped you the most? Share your experience or questions in the comments below.
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Travis Campbell is a digital marketer/developer with over 10 years of experience and a writer for over 6 years. He holds a degree in E-commerce and likes to share life advice he’s learned over the years. Travis loves spending time on the golf course or at the gym when he’s not working.
