Hey there. If you’ve landed on this page, chances are you—or someone close to you—just got laid off. First off, let me say this: I’m really sorry you’re going through this. Losing your job, especially when it wasn’t your choice, can feel like a punch to the gut. It messes with your routine, your self-worth, and your finances all at once.
But here’s the good news—this isn’t the end of the story. In fact, it might just be the beginning of a new chapter. Whether you were part of a mass layoff or your position was quietly eliminated, there’s a path forward. This guide is all about helping you find it.
Let’s walk through how to deal with layoffs, take care of yourself emotionally and financially, and rebuild stronger than before.
1. Take a Deep Breath (Seriously)
The first few days after being laid off are usually the toughest. You might be shocked, angry, anxious, or even relieved (if the job was a poor fit). All those feelings are valid.
Give yourself a few days to process. This is not the time to beat yourself up or panic about the future. Take a walk, call a friend, binge a comfort show—whatever helps you stay grounded. There’s time to figure everything out.
Tip: Don’t isolate. Talk to people. The emotional toll of a layoff can be heavy, and connection helps lighten the load.
2. Understand What You’re Owed
Before you emotionally check out, take a close look at the paperwork your company gave you.
Here’s what to look for:
- Final paycheck: Make sure it includes unused vacation/PTO if that’s part of your company’s policy.
- Severance package: Not all companies offer this, but if they do, read the terms carefully.
- Health benefits: Know when your coverage ends and how COBRA or ACA plans can help bridge the gap.
- Unemployment benefits: Apply ASAP through your state’s unemployment office. You paid into this system—use it.
You might feel awkward asking HR these questions, but it’s your right to get clarity.
3. Audit Your Finances: Know Where You Stand
Okay, deep breath again—it’s time to open your bank account and face the numbers.
Here’s what to do:
- Calculate your runway: How many months can you cover essentials with your savings and any severance/unemployment?
- Cut non-essentials: That doesn’t mean giving up all joy—just look for subscriptions, impulse buys, and services you can pause for now.
- Create a “bare-bones” budget: Focus on housing, food, utilities, insurance, and debt minimums.
Pro tip: If you’ve never tracked your spending before, now’s the time to start. Use a budgeting app or spreadsheet and track every dollar.
4. Communicate with Creditors and Service Providers
If you suspect you’ll fall behind on payments, don’t wait—reach out proactively. Many lenders and service providers offer hardship programs if you’re laid off.
Some examples:
- Credit cards might let you skip a payment or reduce your interest rate temporarily.
- Student loans may qualify for deferment or income-based repayment.
- Utility companies often have emergency support options.
Honesty and early communication go a long way.
5. Update Your Resume and LinkedIn (Even If You Don’t Feel Like It)
You might not feel “ready” yet—but updating your resume is an act of self-respect. You’re not defined by this layoff. You still have skills, experience, and value to offer.
Tips for updating your resume:
- Focus on achievements, not just responsibilities.
- Use action words and quantify results when possible.
- Don’t be afraid to list your current status. “Open to work” is not a weakness—it’s a signal.
On LinkedIn:
- Turn on “Open to Work.”
- Post a short, honest message about your layoff (optional but often powerful).
- Reach out to your network. You’d be surprised how many people want to help—but they need to know you’re looking.
6. Consider a Pivot or Side Hustle
Layoffs can actually be a weird blessing in disguise. Maybe you’ve been dreaming of switching fields, going freelance, or finally starting that side hustle.
This could be your chance to:
- Enroll in a bootcamp or certification course.
- Freelance on sites like Upwork, Fiverr, or Freelancer.
- Start tutoring, teaching online, or offering consulting in your area of expertise.
- Turn a hobby—like photography, writing, or baking—into a small income stream.
Caution: Don’t fall for “get rich quick” schemes. If it sounds too good to be true, it probably is.
7. Network Like It’s Your Job (Because It Kind Of Is)
80% of jobs are found through networking, not job boards. That’s wild, right?
So here’s what to do:
- Make a list of 30 people you know professionally (old coworkers, classmates, etc.)
- Send a message letting them know you were laid off and are exploring new opportunities.
- Ask for informational interviews, not job handouts.
- Join job-seeker groups on LinkedIn or local meetups.
Pro tip: The more specific you are about what you want, the easier it is for others to help you.
8. Apply Smarter, Not Just Harder
It’s easy to panic and start blasting out hundreds of resumes. But targeted applications tend to get better results.
Try this approach:
- Spend more time tailoring your resume and cover letter to each job.
- Apply to jobs you’re genuinely interested in—even if you don’t meet 100% of the qualifications.
- Keep a spreadsheet of where you’ve applied so you can follow up.
Set a daily goal: maybe 3–5 quality applications per day.
9. Practice Interviewing and Tell Your Layoff Story with Confidence
You’ll get asked about the layoff—so practice a calm, honest response. No bitterness, no shame.
Try something like:
“Unfortunately, my department was impacted during recent company-wide layoffs. It gave me a chance to reflect, and I’m now excited to bring my skills to a new team.”
Practice answering common interview questions, too. Mock interviews with friends or even in front of the mirror help.
10. Protect Your Mental Health
Job loss can lead to stress, depression, or even identity loss. Don’t ignore it.
What helps:
- Therapy (check for affordable options or sliding scale therapists).
- Journaling your feelings and progress.
- Exercise—even a 20-minute walk helps shift your mindset.
- Celebrating small wins, like sending a resume or getting a callback.
This part is just as important as budgeting and networking.
11. Consider Temporary or Gig Work
If your financial cushion is thin, consider taking up part-time or gig work while searching for your ideal full-time job.
Options include:
- Rideshare driving or food delivery (Uber, DoorDash).
- Retail or seasonal jobs.
- Pet sitting or dog walking (Rover).
- Freelance work in writing, design, coding, etc.
It’s okay if it’s not your dream job—it’s a bridge to keep you going.
12. Keep a Routine
When you’re unemployed, time can start to feel like an endless blob. Set a daily schedule to keep your energy and spirits up.
Here’s an example:
- 8:00 AM: Wake up, shower, breakfast
- 9:00–11:00 AM: Job applications
- 11:00–12:00 PM: Networking or learning
- 12:00–1:00 PM: Lunch break
- 1:00–3:00 PM: Side hustle or upskilling
- 3:00 PM onward: Errands, rest, exercise
You’re not being lazy—you’re recovering and recalibrating.
13. Upskill for Your Industry or a New One
Now’s the perfect time to pick up new tools and knowledge.
You can learn online for free or cheap through:
- Coursera
- edX
- LinkedIn Learning
- Udemy
- YouTube
Pick skills that boost your resume—like data analysis, SEO, digital marketing, project management, or coding.
Certifications = confidence + employability.
14. Know That You’re Not Alone
Layoffs are happening across all industries—tech, finance, education, and media. You are not a failure. You are not being left behind.
Join forums and online groups where others are going through the same thing. Reddit (like r/Unemployment), Facebook groups, and Slack communities for job seekers are full of empathy and job leads.
You don’t have to go through this in silence.
15. Look at the Bigger Picture
Maybe you’ll end up in a job you love more than the one you lost.
Maybe you’ll finally start that business or side project.
Maybe this is the wake-up call to build a stronger emergency fund next time (hey, no shame—it happens).
Layoffs suck. But they’re not the end of the world. They’re a plot twist. And you’re the main character.
Final Thoughts: You’ve Got This
Getting laid off is hard. But you’re not broken—you’re just between chapters. Take this time to reset, recharge, and reimagine what’s next.
The money stress, the self-doubt, the job search slog—it’s all temporary.
And remember: your pocket matters, your peace matters, and your future still holds a ton of promise.
FAQ: Laid Off, Now What? A Realistic Roadmap to Rebuilding After Job Loss
At Your Pocket Matters, we know how overwhelming layoffs can be—so we’ve rounded up some of the most frequently asked questions to help guide you through this challenging time.
What’s the first thing I should do after getting laid off?
Take a breath. Seriously. Once the initial shock settles, review your severance package (if any), check your benefits (especially health insurance), and apply for unemployment. Then, build a temporary budget based on what you have available.
Am I eligible for unemployment benefits if I was laid off?
Most likely, yes. Layoffs generally qualify for unemployment. Head over to your state’s unemployment website and apply as soon as possible—don’t wait. Payments can take a couple of weeks to process.
Do I have to tell people I was laid off?
You don’t have to—but there’s no shame in it. In fact, being open (especially on LinkedIn or with former colleagues) can lead to new job leads, freelance gigs, and emotional support.
How can I stay afloat financially while I’m unemployed?
Start by trimming non-essential expenses and creating a bare-bones budget. Use any severance pay and unemployment benefits wisely. Also consider gig work, side hustles, or part-time jobs to keep income coming in.
Is it okay to take a break before looking for another job?
Absolutely. If your finances allow, a short break to rest, reflect, and reset can be incredibly healthy. Just don’t let that break turn into indefinite avoidance—set a timeline to re-engage.
Should I explain the layoff in job interviews?
Yes, but keep it simple and positive. Something like, “My role was impacted by company-wide layoffs, and now I’m excited to bring my experience to a new team.” No need to dwell on the negatives.
How do I keep my confidence up during this time?
Stay connected. Talk to supportive friends, keep a routine, celebrate small wins (like sending an application), and remind yourself this is temporary. You’re not defined by your job status.
Can a layoff actually be a good thing?
In many cases, yes. It might be the push you needed to change careers, start a business, go freelance, or pursue a passion project. Lots of success stories started with a layoff.
What if I don’t want to go back to my old industry?
That’s totally valid. Start exploring new paths—research growing fields, take online courses, and talk to people doing work you admire. Layoffs can be the perfect moment to pivot.
How long does it usually take to find a new job?
It varies by industry, location, and role—but give yourself grace. The average job search can take a few months. Stay consistent, keep networking, and don’t be afraid to ask for help along the way.
Abhishek started Your Pocket Matters in 2025 to share his personal experiences with money—both the struggles and the successes. From facing significant losses in trading to turning things around and becoming financially independent, he’s learned valuable lessons along the way. Now, he’s here to help you take control of your finances with honest, practical advice—no scams, no gimmicks, just real strategies to build wealth and achieve financial freedom.
- Abhishek Sinhahttps://yourpocketmatters.com/author/abhisheksinha8884gmail-com
- Abhishek Sinhahttps://yourpocketmatters.com/author/abhisheksinha8884gmail-com
- Abhishek Sinhahttps://yourpocketmatters.com/author/abhisheksinha8884gmail-com
- Abhishek Sinhahttps://yourpocketmatters.com/author/abhisheksinha8884gmail-com
