You've Been Laid Off....
Now What?

​​​​But the truth is, there’s a step-by-step blueprint you can follow to recover, regroup, and emerge stronger than ever. It's about mindset, action, and financial resilience. You can bounce back from a layoff – in fact, with the right approach, you can thrive.

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Step 1: Process Your Emotions and Regain Control of Your Mindset

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When a layoff happens, the first reaction is often emotional shock and disbelief. It’s easy to get caught in a cycle of self-doubt, fear, and anger. But the truth is, your mindset will be your greatest asset in the recovery process.

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The first thing you need to understand is that how you frame the layoff is critical. If you view this situation as a personal failure or something that will define your future negatively, you are more likely to spiral into despair. On the other hand, if you choose to see this moment as a turning point, a necessary step in your evolution, you will be empowered to take the right actions and move forward faster.

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Limiting Beliefs are a major barrier to navigating this transition successfully. Thoughts like, “I’m not good enough,” “I’ll never find another job,” or “I don’t have what it takes to succeed on my own” will keep you stuck. These beliefs are rooted in fear, not in fact.

 

According to HR professionals, emotional resilience is key during a layoff. Employers often understand that employees need time to process this change. Many companies offer Employee Assistance Programs (EAPs) that provide mental health resources, counseling, and even financial planning assistance.

 

Your emotional recovery is important, but it’s also essential to protect your legal rights during this period. If your layoff was unexpected or seems unjust, consult with an employment attorney. You might be eligible for severance negotiation or legal recourse if you feel that the layoff was due to discrimination or unlawful reasons (such as retaliation or violation of company policy). Know your rights to avoid further legal or emotional stress.

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In the context of a layoff, it’s easy to feel overwhelmed by the financial uncertainty. You may also feel self-blame creeping in, thinking, “Did I do something wrong?” or “Am I not working hard enough?” This mindset can be paralyzing. You are not alone in these feelings, but they are not helpful. Shift your perspective: instead of focusing on the "what ifs" and doubts, focus on what you can control and what steps you can take to start rebuilding.

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Actionable Steps:

• Seek mental health support: If you’re feeling overwhelmed, talk to a professional. Your company’s EAP or local resources can help.

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• Reflect on your future: Instead of focusing on loss, use this time to think about your long-term career goals.

  • What’s the next step for you?

  • What is this layoff teaching me?

  • What do I truly want out of my next career move?

  • What action, no matter how small, can I take today to move forward?

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• Visualize Your Success: Take a moment each day to close your eyes and visualize what your ideal future looks like after the layoff. See yourself thriving, whether it’s in a new job, starting your business, or enjoying financial independence. Feel the emotions associated with success—confidence, joy, peace—and make it a habit to revisit this vision regularly. This visualization helps shift your brain from fear to action.

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• Mindfulness Breathing Exercise: Whenever you feel overwhelmed, stop what you’re doing, close your eyes, and focus on your breath. Inhale deeply for 4 counts, hold for 4 counts, then exhale slowly for 6 counts. Repeat for a few minutes. This will calm your mind and refocus your energy on what you can control.

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Step 2: Understand Your Severance Package and Take Advantage of It

You might be wondering if your severance package is enough to support you during this transition. When you’re laid off, your severance package can be a lifeline, but it’s not always a straightforward process. Severance pay is not legally required in most states unless specified in an employment contract, collective bargaining agreement, or company policy. That means employers are not obligated to offer severance pay unless these conditions are met. However, many companies offer severance packages as part of their commitment to maintaining positive relationships with former employees.

 

From an HR perspective, severance is often negotiable, especially if you’ve been with the company for a long time or in a senior role. Many companies offer severance packages that include:

• Extended healthcare benefits

• Outplacement services (career coaching, job search assistance)

• Bonus payouts or unused vacation days

 

Your severance package is not set in stone. Employment attorneys recommend that employees carefully review their severance agreements to ensure there are no non-compete clauses or restrictive covenants that could harm future career opportunities. Additionally, if you feel that your severance package is inadequate or discriminatory, an attorney can help you negotiate a better deal.

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Severance pay often includes a lump sum payment, continuation of health insurance benefits, unused vacation days, and outplacement services. However, severance is negotiable, and many employees don’t realize this. Employment attorneys often advise employees to carefully review their severance agreements, especially when the layoff seems sudden or is due to restructuring. You may be able to negotiate a better package, particularly if you have been with the company for several years or if you are in a high-level position.

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In negotiating your severance, there are a few key things to consider:

• Non-compete or Non-disclosure Agreements: Ensure that your severance doesn’t contain restrictive clauses that could limit your future employment opportunities or entrepreneurial pursuits.

• Extended Benefits: If you’re in need of healthcare coverage, request an extension of benefits or COBRA coverage, as companies often agree to continue benefits for a certain period after layoff.

• Additional Payouts: Ask for a payout for unused sick leave or bonuses that were not included in your severance.

• Timing: The timing of when severance is paid can be crucial. Negotiating to receive it upfront, rather than in installments, can give you more immediate financial flexibility.

 

If you feel that your severance package isn’t adequate or fair, consult with an employment attorney to review your rights and help with negotiation. A lawyer specializing in severance law can help identify whether your package is in line with legal standards and company policy and provide guidance on how to improve it.

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Actionable Steps:

• Request a severance breakdown: Make sure you know exactly what you’re getting (e.g., payment, benefits, etc.).

• Consider negotiating: If your severance doesn’t align with your tenure or position, don’t hesitate to negotiate or seek legal counsel.

• Review any restrictive clauses: Ensure that there are no non-compete or non-disclosure clauses that could hinder your career.

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Step 3: File for Unemployment Benefits ASAP

Many people delay filing for unemployment because they feel it’s unnecessary or confusing. Don’t wait – the sooner you file, the sooner you’ll start receiving benefits.

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Most companies will provide the necessary documentation for unemployment filings, such as your last day of employment and reason for termination. HR departments typically handle these administrative aspects quickly, but it’s still essential to follow up to ensure everything is filed correctly.

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In some cases, employers may contest unemployment claims, especially if they believe the termination was for misconduct. If you suspect your employer will challenge your claim, it’s wise to consult with an attorney who specializes in employment law to ensure you receive the benefits you’re entitled to.

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How to File for Unemployment:
Gather Necessary Documents: You’ll need several pieces of information before filing. This typically includes:

• Your Social Security number

• Personal identification details (like your address and contact info)

• Employment history for the past 18 months (names, addresses, and dates of employment)

• Severance or any other wages you received

• Reason for separation (e.g., layoff, furlough, etc.)

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File Online: Most states have streamlined the unemployment process through online applications. Visit your state's Department of Labor or Employment Development Department website. Here’s where you’ll submit your claim and track progress.

Tip: Many states also offer self-service portals for uploading required documentation and checking your claim status.

Phone or In-Person: If you don’t have internet access or need additional assistance, most states allow you to file via phone or by visiting a local unemployment office. Some offices might require appointments due to social distancing policies, so be sure to check ahead.

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Where to File:
State-Specific Websites: Unemployment benefits are managed at the state level, so the rules, eligibility, and benefits vary by location. For example:

• California: California residents can file through the Employment Development Department (EDD).

• New York: Residents of New York will file through the New York State Department of Labor (NYSDOL).

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Don’t wait for your severance to run out before filing. You can file for unemployment benefits while still receiving severance pay, but you must report any severance or pay you receive during the filing process. Filing early ensures you don’t lose any weeks of benefits.

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By filing as soon as possible, you ensure a smoother transition into financial recovery, allowing you to focus on the next steps in your layoff recovery.

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Actionable Steps:

• File as soon as possible: Apply for unemployment within the first 24-48 hours to avoid delays.

• Gather necessary documents: Ensure you have the paperwork required to file (e.g., proof of employment, termination letter).

• Don’t wait for your severance: Unemployment benefits can be collected while severance is being paid out. However, you must report all income accurately.

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Step 4: Assess Your Financial Situation – NOW is the Time to Layoff-Proof Your Finances

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This is where you take control of your finances. The key to surviving a layoff financially is understanding exactly where you stand and making immediate changes.

 

During layoffs, severance and unemployment can provide temporary financial relief, but HR professionals often recommend that employees use this time to reassess their entire financial plan—looking at long-term savings, debt, and possible expenses that will increase during the job search.

 

An attorney may also recommend that you review any employment agreements you have that could affect your financial situation. For example, you may have a retirement plan or stock options that need to be liquidated or transferred.

 

Actionable Steps:

• Create a financial plan: Calculate how long your severance, unemployment, and savings will last. Adjust your expenses accordingly. If you need help, see step 6.

• Cut unnecessary expenses: Cancel subscriptions or reduce non-essential spending.

• Seek professional advice: Consulting a financial advisor, especially during a time of uncertainty, can help you make informed decisions.

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Step 5: Start Building Your Side Hustle or New Career Path

A layoff doesn’t have to mean the end of your career. This is the perfect opportunity to pivot and build a more resilient future.

 

Many people are surprised by how quickly they can turn a side hustle into a full-time career. People who build side businesses while employed end up with a head start when they’re laid off. Having an entrepreneurial mindset makes the transition smoother and less stressful.

 

When considering starting a side hustle or launching a business, an attorney can help you ensure that you’re not violating any non-compete agreements or using proprietary information from your previous employer.

 

Actionable Steps:

• Identify your strengths: What skills or services can you offer? Use your severance and savings as a cushion while building your new career.

• Create a business plan: Set goals and start networking to build a clientele.

• Check your contracts: If your previous job involved confidential or proprietary information, make sure your new side hustle won’t violate any agreements.

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Step 6: Join BOLD Rise Circle

Layoff can be a lonely place, but you're not alone. Navigating through a layoff doesn’t need to be complicated or overwhelming.

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Join BOLD Rise Circle—an exclusive, curated community of ambitious professionals in career transition. Whether you’ve faced a layoff, are pivoting careers, or rebuilding after burnout, you’ll find the support, clarity, and accountability you need to rise boldly.

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In this community, you’re never alone. We rise together—every step of the way. You’ll connect with like-minded individuals, gain insider knowledge, and take bold action to make your next chapter a success. Ready to make your bold comeback? Let’s rise together.

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