What to do after getting laid off

A ranked checklist for the first weeks after a layoff — unemployment, severance, health insurance, money moves, and mindset.

I compiled this list in 2024, the week my own company laid off 14% of its staff — around 2,200 people, many of them teammates and friends. Considering the number of lives, families, and children that were disrupted is difficult to think about. Having a checklist helps you act while you process.

The list is compiled from the following sources (Bogleheads Thread 1, Bogleheads Thread 2, HBR article). I extracted, categorized and ranked the items with gpt-4o, then edited the result. It first appeared as a blog post.

Immediate Actions

1. File for Unemployment: Apply for unemployment compensation (U.C.).
2. Review Severance Package: Understand severance details, including insurance continuation.
3. Health Insurance: Decide between COBRA, ACA, or Medicaid based on coverage needs and costs.
4. Update Resume and Network: Prepare resume and reach out to recruiters and professional networks.
5. Take Time to Process: Allow at least 24 hours to process the layoff before job searching.
6. Reconfigure Mindset: Adjust your mindset to stay positive and focused on the future.
7. Emotional Adjustment: Take time to process emotions and plan next steps.
8. Financial Planning:
   • Calculate monthly burn rate and adjust expenses.
   • Ensure emergency funds are accessible (see Build your savings).
   • Maximize contributions to Roth IRA if eligible.
9. Health and Wellness: Focus on spiritual, mental and physical health (exercise, diet, socializing).

Financial Considerations

1. Understand Severance and Benefits: Clarify severance package details, including eligibility and benefits.
2. Expense Management:
   • Cut discretionary spending.
   • Consider subletting or exiting the lease if feasible.
3. Asset Allocation:
   • Reassess and adjust asset allocation if necessary.
   • Consider Roth conversions if in a lower tax bracket.
4. Document Accomplishments: Use CARL (Context, Action, Result, Learning) or STAR(T) (Situation, Task, Action, Result + Takeaways) methods to list accomplishments.
5. Pension Decision: Evaluate whether to take a lump sum or monthly pension.

Personal Well-being

1. Emotional Adjustment: Take time to process emotions and plan next steps.
2. Health and Wellness: Focus on mental and physical health (exercise, diet, socializing).
3. Positive Mentality: Engage in activities that improve mental well-being (yoga, meditation, hobbies).
4. Career Reflection: Reflect on career goals and consider potential career changes or further education.

Career Management

1. Update Resume: Prepare and tailor your resume for job applications.
2. Network with Professionals: Reach out to former bosses, colleagues, and professional networks.
3. Job Hunting Schedule: Create a schedule for job search activities.
4. Behavioral Interview Prep: Prepare stories that demonstrate your accomplishments and problem-solving skills.
5. Identify Job Keywords: Highlight keywords from job descriptions to tailor your resume.
6. Explore Job Boards: Search for interesting job listings but delay applications until your resume is optimized.

Long-term Strategy

1. Prepare for Transition Outcomes: Be ready for any possible outcomes, including potential layoff or job offer with new entity.
2. Financial and Career Goal Setting: Set clear goals for your financial stability and career direction.
3. Value Alignment: Identify your values and ensure potential jobs align with them.
4. Monitor Job Market: Actively search for new opportunities while negotiating with current and potential employers.
5. Relocation Considerations: Explore job opportunities in different locations if current lease can be terminated.
6. Self-care and Growth: Use this time for personal growth and maintaining a positive mindset.

The foundation that makes a layoff survivable is laid beforehand: an emergency fund, a known monthly budget, and a career you steward faithfully.