Getting laid off can turn an ordinary Tuesday into a day you’ll remember for a long time. Maybe you saw it coming. Maybe you didn’t. You might feel angry, worried, relieved, embarrassed, or some combination of all of the above. And while you’re processing what just happened, you may also be handed a stack of paperwork and told that you’ll need to make decisions about severance, healthcare, retirement benefits, and more.
Among all that uncertainty comes the inevitable question: “What am I going to do now?”
If you are in your first week after a layoff, you don’t need to have the answer yet. Your first priority isn’t to figure out your next 10 years. It’s to take care of the immediate practical matters, give yourself a little breathing room, and begin preparing for the job search ahead.
At Transition Solutions, we help people navigate career transitions every day. We’ve found that having a plan for those first few days can help reduce some of the uncertainty and allow you to focus on what comes next.
First, Take a Breath
Before you do anything else, give yourself permission to process what happened. A layoff is a significant professional event. Even if you know intellectually that the decision wasn’t personal, it can still feel personal. You may question your abilities, worry about your finances, or wonder what you’ll tell people.
You don’t have to immediately turn yourself into a perfectly polished job seeker.
Take a day, if you need one. Talk to people you trust. Go for a walk. Get some sleep. Do whatever helps you get your bearings. Then start working through this practical checklist.
Review Your Budget
Thinking about finances probably isn’t the most exciting item on your list, but it is one of the most important. Before you start making major career decisions, you need to understand your financial runway. Start by reviewing your:
- Current savings and cash reserves
- Monthly essential expenses
- Outstanding debt
- Upcoming large expenses
- Severance payment and timing
- Unemployment benefits
- Health insurance costs
- Other sources of household income
Then identify what you can adjust if needed—either immediately or if you find yourself in a longer search.
You don’t need to panic and cancel everything you’ve ever enjoyed, but you do need to understand what your financial situation looks like so you can make informed decisions about your job search. Knowing your runway can also help you make better career decisions. If you have six months of financial flexibility, your strategy may look very different from someone who needs income immediately.
File for Unemployment Benefits
If you’re eligible, don’t put this off. Unemployment insurance is administered by individual states, and eligibility requirements and benefit amounts vary. The U.S. Department of Labor recommends contacting your state’s unemployment insurance program as soon as possible after becoming unemployed; generally, you’ll file in the state where you worked (even if you worked remotely).
When filing, you may need information about your former employer, employment dates, wages, and other details, so gather those documents before you begin. And don’t assume that receiving severance automatically means you shouldn’t file. The interaction between severance and unemployment varies by state, so check your state’s rules rather than relying on advice from a friend who lives somewhere else.
Read Your Severance Agreement Carefully
Your severance package deserves more than a quick glance. Read the entire agreement and make note of deadlines, payment terms, benefits continuation, and any conditions attached to receiving the severance. Pay particular attention to language involving:
- Nondisclosure agreements (NDAs)
- Nondisparagement
- Confidentiality
- Nonsolicitation
- Noncompete provisions
- Return of company property
- Release of claims
- Restrictions on contacting former customers or employees
If you don’t understand something, ask questions before signing. Depending on your circumstances and the language of the agreement, you may also want to have an employment attorney review it. Severance agreements and restrictive covenants can be governed by a combination of federal and state laws, and the rules can change.
One important current point: don’t assume that a blanket federal ban on noncompetes is currently protecting you. The FTC’s 2024 Noncompete Rule was blocked by a federal court, and the FTC later moved to dismiss its appeal and accept the rule’s vacatur. Noncompete restrictions can therefore still raise state-specific and contract-specific issues.
The bottom line: read the agreement and get legal advice when you need it.
Understand Your Benefits
Your employment may have ended, but you still have benefits-related decisions to make. Find out exactly when all these will end or change:
- Health insurance
- Dental and vision coverage
- Life insurance
- Disability coverage
- Flexible spending accounts
- Health savings accounts
- Retirement benefits
Don’t assume everything stops on your last day, and don’t assume everything continues automatically either. Your separation documents and benefits administrator should explain the applicable dates and options. This is also the time to ask lots of questions. If something isn’t clear, contact HR or the benefits administrator and get the answer in writing.
Pay Particular Attention to Healthcare
Healthcare deserves its own section because losing employer-sponsored insurance can create a significant financial and logistical issue. If you’re eligible for COBRA, you may be able to continue your existing employer-sponsored health coverage for a limited period, generally at your own expense. The U.S. Department of Labor notes that COBRA generally applies to private-sector group health plans maintained by employers with at least 20 employees, although state “mini-COBRA” laws may provide additional options for smaller employers.
However, COBRA isn’t your only option. Losing job-based coverage generally qualifies you for a special enrollment period through the health insurance marketplace. HealthCare.gov currently gives you 60 days after losing job-based coverage to enroll in marketplace coverage. Plus, some states offer state-sponsored insurance. Depending on your household circumstances, you may also qualify for premium tax credits or Medicaid/CHIP.
If your spouse or partner has employer-sponsored coverage, investigate whether you can join that plan as well. The important thing is not to let the days slip by while assuming you’ll figure it out later. Healthcare is one area where “I’ll deal with it next week” can become an expensive mistake.
Gather Your Career Documents
Before you lose access to anything, if you have a company-issued computer, phone, or tablet, make sure you have the personal documents you’re entitled to keep. Depending on your circumstances, this may include:
- Your resume
- Copies of performance reviews
- Employment records
- Certifications
- Professional development records
- Awards
- Nonconfidential examples of your work
- Contact information for colleagues and professional contacts
Be careful here: Do not take confidential company information, proprietary documents, customer lists, intellectual property, or anything else you’re not authorized to retain. Your goal is to preserve your own career records, not your former employer’s confidential information.
Also, be sure you have access to your LinkedIn profile. Some professionals only use their work email there, and if you get locked out of LinkedIn and need to retrieve your account, you won’t have that work email on which to rely. Take a moment to update your account to include your personal email address.
Make a List of Your Accomplishments
This is one of the things people often overlook in the first week after a layoff. Start writing down what you accomplished in the role and company while the details are fresh. Think about:
- Problems you solved
- Projects you led
- Revenue you generated
- Costs you reduced
- Teams you built
- Processes you improved
- Customers you helped
- Awards you received
- Goals you exceeded
Don’t worry about making it resume-ready yet. Just capture the stories. Six months from now, you’re going to be very glad you didn’t have to recall the details of that major project from memory.
Reconnect with Your Professional Network
You don’t have to send 100 messages on your first day, nor is it a great idea to move forward from such a place. Instead, start with the people who already know you well. Former colleagues, managers, mentors, clients, professional contacts, and friends can all be part of your initial circle.
You can keep the message simple:
“I wanted to let you know that my position was eliminated as part of a workforce reduction. I’m taking a little time to get organized, and I’ll be starting my search soon. I’m targeting senior marketing leadership roles in the technology space, so I’d love to stay in touch and hear what you’re seeing in the market.”
Notice what’s included: What happened and what you’re looking for. What’s not is an apology or an overdone explanation. You’re simply letting people know that you’re available.
Don’t Rush into “The Perfect Job”
This is particularly important during the first week. You may feel an enormous amount of pressure to prove that you’re still employable by immediately applying for anything that looks remotely appropriate.
Resist that urge.
The first week after a layoff is a good time to begin thinking about what you actually want next. Consider:
- What roles do you want?
- What industries interest you?
- What companies appeal to you?
- Are you targeting the same level?
- Are you considering a career pivot?
- Would consulting or business ownership make sense?
- Do you want remote, hybrid, or onsite work?
- What compensation range do you need?
- What matters most to you in your next employer?
You don’t have to answer every question immediately. But the answers will eventually become the foundation of your job-search strategy.
Take Stock of What You Need to Update
Once the immediate logistics are under control, take a look at your professional presence. You may need to:
- Update your resume.
- Refresh your LinkedIn profile.
- Create or refine a target company list.
- Gather recommendations.
- Update your professional headshot.
- Review your LinkedIn URL.
- Identify skills or certifications you want to strengthen.
Don’t feel as though you have to rebuild your entire professional brand in a weekend. This is preparation, not a race.
And Then: Give Yourself a Plan
The first week after a layoff can feel like an endless expanse of unstructured time. That’s one reason creating a basic routine can help.
Once you’ve handled the immediate administrative issues, establish some structure around your days. You might spend part of the morning on your job search, take a break for exercise or another activity, and reserve time for networking or professional development.
Your job search is now your job, but that doesn’t mean you need to sit in front of your laptop for eight hours every day refreshing LinkedIn. In fact, you shouldn’t. Effective job searches involve research, networking, follow-up, preparation, and relationship building, not just applications.
You Don’t Have to Figure It All Out This Week
The first week after a layoff can feel like a turning point, but it’s really just the beginning of a transition.
Take care of your finances. File for unemployment if you’re eligible. Understand your severance agreement and benefits. Ask questions about healthcare. Gather your career information. Reconnect with people who can support you.
Then give yourself some time to think about where you want to go next.
At Transition Solutions, we help people navigate career transitions every day. Sometimes the next step is finding a similar role. Sometimes it’s a career pivot, consulting, entrepreneurship, or something entirely different. The important thing is to approach the decision strategically rather than allowing the circumstances of the layoff to make the decision for you.
You don’t need to have your next job lined up by Friday. You just need to take the next right step.
A Quick First-Week Checklist
Take care of the immediate essentials:
☐ Review your budget and financial runway.
☐ File for unemployment benefits if eligible.
☐ Read your severance agreement carefully.
☐ Identify any NDA, noncompete, nonsolicitation, or confidentiality provisions.
☐ Understand when your benefits end.
☐ Review healthcare options, including COBRA and marketplace coverage.
☐ Ask HR or your benefits administrator questions.
☐ Gather your personal career documents.
☐ Capture recent accomplishments while they’re fresh.
☐ Reconnect with a few trusted professional contacts.
☐ Begin thinking about what you want next.
☐ Give yourself permission to breathe.
You have time to build the rest of the plan.
About Transition Solutions
For more than 35 years, Transition Solutions has helped individuals navigate career change through personalized coaching, innovative technology, and practical strategies for today’s job market. Our experienced career consultants help clients understand their options, develop a strategic job-search plan, and move forward with confidence.
To learn more about our services, visit Transition Solutions, call 888-424-0003, or email info@transitionsolutions.com. Follow Transition Solutions on LinkedIn for additional career advice, job-search strategies, and workforce insights.