Losing a job can be a deeply unsettling experience—especially if it comes unexpectedly, NPR reports.
Beyond financial worries, the loss of routine and identity can make it difficult to know where to begin. But experts stress that while a layoff can feel overwhelming, it doesn’t define your value or your future.
“Pause and give yourself time to process your emotions,” says Octavia Goredema, a career coach and author of Prep, Push, Pivot: Essential Career Strategies for Underrepresented Women. “This is a business problem, not a you problem.”
When you’re ready to move forward, Goredema offers practical advice for taking the next steps, from reviewing paperwork to reimagining your career path. Here’s a breakdown of key actions to take after a layoff:
Step 1: Carefully Wrap Up with Your Employer
Review all exit paperwork. This may include details on vacation pay, severance, benefits, and legal agreements like nondisclosure or noncompete clauses.
Don’t rush to sign. Ask for more time if you need it; once you sign, you’re bound by the terms.
Negotiate if possible. Benefits such as healthcare extensions or timelines may be flexible.
Seek legal advice. If you suspect wrongful termination, consult an employment attorney for guidance.
Step 2: Secure Benefits and Health Coverage
Apply for unemployment insurance quickly. Each US state offers different benefits and timelines, so check your local program.
Explore other assistance programs. You may qualify for job training, food aid, or additional resources through state and federal services.
Assess health insurance options. While COBRA coverage may be available, it can be costly. Marketplace plans or Medicaid may offer more affordable alternatives.
Step 3: Plan Your Job Search Intentionally
Reflect on your career goals. Consider what you enjoyed—and didn’t—about your last role to help guide your search.
Estimate your job search timeline. Use your past experience and industry trends to create a realistic timeline. Goredema suggests adding an extra month or two to your estimate.
Be strategic. Your answers can help you evaluate opportunities more effectively when they arise.
Step 4: Create a Financial Plan
Budget based on your estimated timeline. Break down your savings, severance, unemployment payments, and any other sources of income to match your forecasted job search duration.
Adjust as needed. Track your spending and be flexible if circumstances change.
Step 5: Prepare for Contingencies—And Explore New Possibilities
Have a Plan B. If full-time work doesn’t materialize right away, consider gig work, temporary roles, or even a career pivot.
Don’t be discouraged. Backup plans are a sign of resilience, not failure.
Use this time to reassess. Have you always dreamed of a different path? Goredema notes that one client turned a layoff into an opportunity to start a gardening business—and never looked back.
Being between jobs is a normal part of many people’s careers. With the right support and strategy, a layoff can become not just a detour, but a turning point.
“There’s opportunity waiting for you,” Goredema says.
