What to Do if You Were Laid Off
A practical guide to navigating layoffs and planning your next move.
So, I heard you were laid off.
I’m so sorry to hear that, I understand how stressful that is.
Time to lock in and take action!
Whether you were just laid off, have been unemployed for a few months, or are worried you might get laid off, this is for you.
I started a video series on my other media channels called “If I got laid off tomorrow…” where every day for the month of August I’m sharing low-barrier, but high-potential careers people should consider if they’ve been laid off - and I did not expect it to get as much attention as it has.
If you want to check out the video series for yourself, click any of the links below:
One of my videos on TikTok seems to have found a spot on the internet for everyone who was just laid off, filling my comments with excitement for the series and the timing of it.
It broke my heart to read all the layoff stories, so I created a guide for navigating the layoffs.
You’re not alone.
It’s not your fault.
But it is your responsibility to figure out what you want to do next. So, let’s get into it!
What You Need to Know About Unemployment Benefits
If you think you might be laid off, DO NOT QUIT.
Recently, I talked with someone who told me that they were worried about their company doing lay-offs, so they decided to quit instead before they could get laid off. Since the action was already done, I didn’t want make the situation worse by telling them they couldn’t qualify for unemployment benefits now, so I kept quiet. But, DO NOT DO THIS.
If you voluntarily quit your job, you become exempt from receiving unemployment benefits.
Every business/entity with employees on their payroll pays into unemployment to the government (it’s where the unemployment funds come from, similar structure to insurance). This is because of the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). Unemployment was created as a safety net for people who have lost work through no fault of their own.
When a business has to lay off employees, they typically need to pay extra taxes for the unemployment benefits being used by the former employees. Every time someone files for unemployment through their state agency, the state contacts the employer who laid them off and verifies the claim. Every time you file a claim, your former employer receives another notice.
When a former employer receives the claim, they’re given the opportunity to verify or contest it. If you voluntarily quit your job or get fired for cause, your former employer will contest the claim, and you won’t receive unemployment benefits. Essentially, the government doesn’t want to reward people for deciding they don’t want to work anymore.
I used to work in HR/payroll for a small business, and at least once a month I had to contest former employees’ unemployment claims. All of them had quit voluntarily and then tried to claim unemployment benefits. Luckily for the business, upon their resignations, we always asked for a formal letter of resignation. The reason why employers always ask for a formal letter of resignation if you are quitting is so they can contest any unemployment claims you may make following that. I would upload their letter, put in some notes about their voluntary departure, and then the claim would be denied.
If you want to receive unemployment benefits, then do not quit voluntarily. Wait it out until the layoff, then apply for your unemployment benefits. As a precaution, ask your employer for a formal written notice of the layoff, in the chance you need to authenticate it if they try to deny the claim.
You’ve got 6 months
If you’ve been laid off, the first thing you should do is apply for unemployment benefits. The second thing you should do is apply for SNAP benefits. Free money, right?
The amount you’ll receive in benefits will vary by state and individual circumstances, but people can typically receive anywhere from $300-$800 a week while looking for employment.
In order to receive your weekly stipend, you’ll have to demonstrate that you are actively looking for new employment. They’ll ask you to verify what kind of job hunting you’ve been conducting and what jobs you’ve applied for.
You’ll be eligible to receive benefits for up to 6 months. Do not waste this time.
I’ve worked with people before who treated unemployment like a little vacation (no judgement, I get it) and then began looking for work around month 5 or 6. I recently wrote about what to expect from the job market in 2025, but one thing important to note is that it is taking people on average 3-8 months to find employment, with many taking even longer. The job market is dry right now (employers market, not an employees market), and you need to take all the time you can get to land that next job. Don’t wait until the end of your benefits to start job hunting, because your benefits will run out after 6 months and you may still be searching for work.
Of course, going through a lay-off is very difficult and you’ll need time to adjust. It’s okay to take time for yourself, focus on self-care, and catch up on things you need to. The important thing is to understand the timeline and what kind of job market you’re entering.
What to do for the 6 months
If the industry you were working in is seeing a reduction in workforce across the entire industry, it might be a good time to find a new line of work and learn new skills. There are lots of jobs that are still growing in demand, and many require only 3-6 months of training or schooling.
Job hunting has rapidly changed in the past few years. If you haven’t had to look for employment in a while, then I would recommend checking out my recent post about job hunting in 2025. In it, I offer advice, tips, and resources for job-seekers.
If you’re looking to enter a new industry, learn new skills, and challenge yourself, below is a list of some free and/or cheap learning resources to check out. Your local community college will also offer 9-24 month certificate/degree programs and other options for skills-based learning and employment.
Hint: Community colleges are one of the best resources to utilize. They typically have career centers to help people figure out what they want to do, resources for returning to school, childcare, and more. I’m a big fan of community college. I received my associates degree from my local one and had a great experience.
Continued Education/Certificate/Course Work Resources:
Next Steps
Severance
When going through layoffs, it’s important to ask your employer about severance. Severance is a package of benefits some employers can offer laid-off employees that can include a lump-sum pay, continuation of benefits, or even career counseling. What you receive in your severance package can also be negotiated.
Here’s a little guide I found on how to negotiate severance.
Health Insurance
One of the hardest parts about being laid off is often the loss of employer-provided healthcare, especially with health care price inflation outpacing the overall CPI index.
If your employer provided your health insurance, they have to offer you COBRA upon separation. COBRA guarantees an extension of coverage through your employer plan if you opt in, but it can be expensive as the cost of the entire deductible falls on the laid-off employee, unless negotiated as a part of severance.
When you lose coverage, you have 60 days to enroll in a plan through the Healthcare Marketplace.
Anyone can enroll in a plan during the Open Enrollment Period (Nov 1st-Jan 15th), but if you experience a qualifying life-event (lose your job-based health insurance) it will trigger a Special Enrollment Period where you can shop for a new plan. You may also qualify for Medicaid, depending on your circumstances.
Resume Revamp
Now’s the perfect time to freshen up your resume and update your experience and skills. I recommend keeping a “master resume” that contains all of your work history and experience on one document (along with contacts and references), but then having a refined resume for job applications. Try to capture any metrics from your job that best demonstrate your abilities, i.e. how much money you managed, caseload number, efficiencies you improved due to innovation, etc.
Many employers are moving towards skills-based hiring over experience-based, so try to demonstrate the skills learned and used in your written work experience. If you list a skill you have, ensure it’s demonstrated in your experience or portfolio.
As a part of my referral program, if you successfully refer three readers to my newsletter, you can download my personal resume template! It easily organizes information to fit onto one page and provides clear readability.
Leave on a good note
No matter the circumstances, leaving your place of employment on a professional note can lead to beneficial outcomes in the future. Employers will ask for references during the hiring process, and these references can be your colleagues or supervisors. While unanticipated separations from a workplace can get messy, maintaining good relationships with the people you worked with will provide better outcomes in the long run.
This is also how you develop your network. You never know if a former colleague could land an amazing next job and put in a good word for you. If you work in a tight-knit industry, word can spread quickly about behavior, good or bad - this could directly impact the outcome of your next job prospect. Keeping things professional, if just for the sake of your ongoing career, will be critical.
Work doesn’t only offer the security of income, it also provides us a place of belonging, identity, and value.
Because of this, being laid off can be painful. It quickly dissolves the outlook you had for your future and disrupts plans.
Luckily, your worth is not defined by your employment status. Whatever situation you’re in, there’s a way out, and you’ll find it. Keep your head up, continue applying, and know good things are heading your way. I’m rooting for you!
Happy job hunting.
Most of the time people are shocked at how **little they get from unemployment.
There is a look-back and base period. So if you haven’t been at your current ( laid off ) employer for long, they go back to your previous employer for wages earned so you should be ready with your last few jobs contact information when you file.
Also if you are working part-time, you may not have paid enough into unemployment to collect much, if any.
Hope for the best and prepare for the little loop holes you don’t know about. 😩. I speak from experience.