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Did you just get off the most tone deaf Zoom call where someone from human resources announced a mass layoff? Or worse, was it done over email?

Getting laid off is never fun and it’s downright insulting when it’s done without an ounce of respect. Your employer could be downsizing, restructuring, or going through other operational changes, but that doesn’t make it seem any less personal.

We’ve seen way too many layoffs recently from technology companies, partially due to AI, but it can happen within any company and it’s absolutely not your fault.

There have been 1.1 million job cuts in 2025 so far (65% more than 2024), according to an October 2025 report by Challenger, Gray & Christmas, an outplacement and executive coaching firm that tracks layoffs monthly.

Layoffs are emotional and you’ll need some time to process, but it’s important to stay professional with your eyes looking forward. Sit with those emotions and feel your feelings, but don’t stay there. 

We gathered a few software engineers to get a behind-the-scenes look into their careers, including how they’re handling layoffs. One software engineer we interviewed had an interesting point. He says, “It gives you, as an employee, a chance to kind of redefine or reevaluate where you’re at.” He touches on this chance that you now have to take the power back in your hands and see where you can pivot from there. 

You’re not alone in this and it won’t be the deciding factor for what happens to the rest of your career. There is life after a layoff. 

Use this step-by-step guide to understand your rights, secure your severance, learn how to file for unemployment, and other important tasks like rolling over your 401(k) and getting healthcare coverage, so you can move on with your life and on to your next chapter.

Key points:

• There are laws in place, like the WARN act, that protect workers’ rights in a layoff.
• Get all of the details about your layoff from human resources in writing, which is called a “layoff letter”, before you sign anything.
• You may be entitled to a severance package, continuation of benefits, and unemployment.
• You can work with an employment lawyer through the National Employment Lawyers Association throughout your layoff to negotiate your severance and benefits, and make sure your rights are being honored (most offer free consultations).
• Revisit your finances and adjust your budget to account for the loss of income and apply for unemployment benefits through the U.S. Department of Labor website.
• Prepare a few things to re-enter the job market with, such as recommendation letters, resume and LinkedIn updates, and connect with your professional network.

Know Your Rights & Revisit Your Contract

Yes, employees have rights, especially during a layoff! We reached out to retired employment attorney, Delyanne Barros, to help us get a little more acquainted with what rights you may or may not have. 

After hearing the unsavory news of your layoff, expect a separate meeting request from human resources. If they don’t, set one up. This meeting is to go over the details of the layoff and to ask for your signature on a few documents (don’t sign just yet). 

Delyanne says that employees should not sign anything before talking to an attorney. “Many employers will try to pressure you to sign a severance agreement or waiver on the spot. The best thing to do is to take it with you and say that you need to look it over carefully and that you will promptly get back to them,” says Delyanne.

Delyanne recommends that employees get familiar with the Worker Adjustment and Retraining Notification (WARN) Act. “Most states in the US are at-will states which means that an employer can fire for any reason or none at all. However, there are specific laws that apply to certain employers when conducting mass layoffs. The WARN Act requires employers with 100 or more employees to provide 60 days notice of any mass layoffs."

To find whether an employer has issued a WARN notice or not, a simple google search can help. ”An employee can look up whether their employer has issued a WARN notice by googling ‘Warn notice’ plus their state. Many states also have mini-WARN Acts that provide additional protections for employees at smaller companies,” she says.

There are currently 13 states with mini-WARN acts, including California, Connecticut, Washington, North Carolina, and Illinois, to name a few.

Employees’ rights outside of the WARN Act can get a little tricky, but Delyanne says to check your employment contract to see if it outlines any specific information in case of a layoff, and to reach out to the National Employment Lawyers Association (NELA) to find an employment lawyer to work with.

Request a “Layoff Letter”

Your company can supply a confirmation letter, or “layoff letter”, that states that your position is being terminated. Request this letter from the human resources associate you’re working with that includes the reasons for the layoff, effective date of termination, date of your last paycheck, and details about any severance payments or benefits that you’re entitled to.

Having this letter gives you official documentation of your layoff, which may come in handy when applying for unemployment benefits and future job searches. It will also come in handy if there are any disputes or legal issues related to the layoff.

Understand Your Severance Package

If you’re entitled to a severance package, lucky you! That will be your lifeline after your final paycheck, so don’t overlook it. It’s best to review all the details with a member of human resources so you fully understand your severance package and if it’s fair or not. There are no stupid questions here. Ask them anything and everything you can think of.

Negotiation is the name of the game with severances. Just like negotiating salary during a job offer, severance packages can also be negotiated. Delyanne says this is where an employment lawyer also comes in handy, but many people hesitate to reach out to one because they think they’re only useful when planning to sue an employer. “However, I coached many clients behind-the-scenes during severance negotiations or negotiated on their behalf if they preferred it,” she says.

Delyanne advises employees to “consult with an employment attorney in their state before they engage in severance negotiations. Most attorneys will offer a free consultation and may provide some guidance during that meeting.”

Employees wanting to speak with an employment lawyer should check NELA’s referral directory online. 

Ask About Benefits

Similar to negotiating benefits during a job offer, you can also negotiate them when you leave. In your meeting with HR, go over your current benefits with them to see if compensation is warranted. 

Even if your benefit information is included in the layoff letter, discuss the specifics with human resources so you don’t have any unexpected surprises later on. Ask about health coverage changes, including the official end date of your employer-sponsored health plan and how to sign up for Continuation of Health Coverage (COBRA). 

But, what about unused paid time off (PTO)? You can absolutely get compensated for those if the company is able to include it. Some employers already have a policy indicating the certain number of PTO days they pay out for employees based on how long they’ve been at the company, but if yours doesn’t, don’t be afraid to ask! Your employment lawyer can help you negotiate this as well.

Look At Options to Continue Healthcare Coverage

Depending on your employer, you may be able to sign up for COBRA to continue your health coverage. The time period for the coverage continuation usually falls around 18 months, but you’ll have to pay the full premium in addition to administration fees.

Another option is looking at alternative health insurance options on the Healthcare Marketplace or joining your spouse’s health plan. 

Review Your 401(k) & Prepare for a 401(k) Rollover

Your 401(k) is 100% yours and won’t disappear just because you've been laid off. Employers will either keep it where it is, or transfer it to another 401(k) provider or Individual Retirement Account (IRA) of their choosing. 

This is where 401(k) rollovers come in. It’s a good idea to rollover your 401(k) after your last day of employment so you aren’t at the mercy of the company’s choices. When rolling over a 401(k), there’s the option of transferring it to an IRA of your choosing using tools like Capitalize or PensionBee.

Ask Your Boss for a Letter of Recommendation

You need as many resources on your side as possible when you reenter the job market. This is where your boss can help! I mean, it’s the least they can do.

Set up a quick 1-on-1 with your boss during your last weeks or months at your job to see if they can write a letter of recommendation for you and if you can use them as a reference. Another option is asking them if they can fill out a recommendation for you on LinkedIn to help your profile attract recruiters.

Many folks will also post on LinkedIn that they just got laid off and are looking for another job. If you also want to do this, I recommend following this example and asking your manager if they can comment on it and vouch for your expertise (including at least 1 result you achieved). This is such an easy 1-minute thing they can do for you that will instantly appear in front of multiple employers at once, including your manager’s connections as well.

File for Unemployment Benefits

Unemployment benefits are available to laid off employees if your employer contributed to the state’s unemployment insurance program. Payments from unemployment benefits, and its duration, will depend on your state. 

Visit the U.S. Department of Labor website to find your state and file for unemployment benefits.

Revisit Your Finances & Adjust Your Budget

Now that you’ve lost your primary source of income, it’s time to review your finances. Log into your different accounts including your checking, savings, and any investment accounts to take stock of your current financial situation. 

Re-adjust your budget and cut any expenses you can. If you’ve saved an emergency fund, determine how much of it you want to use and how you can rework your budget to accommodate it.

Update Your Resume & LinkedIn

It’s probably been awhile since you’ve updated your resume and LinkedIn. Many of us forget about them the longer we stay at one job. It’s time to update and revamp both to help you stand out when applying for jobs.

Add information about your most recent job to your resume. Update it to include not only what you did, but also include the impact and results of your contributions. We love Teal for updating your resume. It formats your resume so recruiters can find it easily and suggests ways to stand out, including how to match your resume to the jobs you’re applying to.

Then update your information on LinkedIn, including your past role and the skills used in that role. Even better if you put a bullet or 2 about project results and upload or link to the work you did at each company (if you’re allowed to share that work). It’s also helpful to add keywords in your LinkedIn headline that shows exactly what you do and for who, and select that you’re “Open to work” on your profile.

Also read: How to Write An Unignorable Cover Letter (With Examples)

Tap Into Your Network

Your network is one of the most valuable resources when searching for a new job. Reach out to past colleagues on LinkedIn or other platforms, and any recruiters you’ve had contact with in the past. 

If you’re in any local networking groups, such as a women’s networking group or alumni organization, reconnect with them and see what events are happening near you or virtually. Online groups, like those on Slack, Fishbowl, and Handshake, can also be helpful when building a professional network. Type into Google your job title and the words “Slack groups” to find relevant groups for you.

Really Think About Where You Want to Go From Here

Before diving head first into a stream of endless job applications, ask yourself what you really want to do from this point on. Do you want to work for a company in the same sector? Do you want the same role? Do you want to freelance while you figure out your next move?

Most people need a new job immediately to replace the loss of income, especially when they don’t have an emergency fund to fall back on. This is why many turn to freelancing during their job search. Or if they already did so as a side hustle, they lean even more into it. That’s exactly what Dana Miranda, a personal finance journalist that I spoke to about her recent layoff, did after she got the news.

“I didn't start applying for jobs right away or reach out for any freelance writing work. I slowly contacted a couple of people in my network about full-time writing jobs, and I decided to take the opportunity to diversify my income,” says Dana. “I don't want to be wholly reliant on the media industry, especially a single niche, for my income. So I posted to LinkedIn offering virtual assistant(VA)/operations support to see if I’d get any bites.”

This was something Dana had experience in from running her own freelance business on the side of her job, and she indeed got some bites. She was able to secure 3 clients from promoting her new service on LinkedIn via one simple post. If you want to try a similar approach in your area of expertise, follow her example to get an idea for how to position yourself. She’s still looking for jobs while running her new VA service and freelance writing.

Also think about how much you want to get paid and what sort of benefits you’re looking for in your next job. Our Salary Database and free Market Research Guide can help when setting your market salary range. 

And for your job search, our Transparent Job Board can help! We only post jobs that include the salary because you don’t deserve to spend hours applying to jobs that may not even pay you fairly. 

For remote jobs, we love FlexJobs (they screen every job so the job board is 100% scam-free and ghost job-free).

Take Care of What Matters Most: Yourself

Job hunting is exhausting. Take it day-by-day and know that there is light at the end of this tunnel. It’s important to have some sort of structure in your days with a daily routine. Add some much-needed self care and set realistic expectations in your job search to promote a positive outlook. 

Please, please, please ask for help if you need it, whether that’s spending time with your family and friends to free your mind, working with a life or career coach, or reaching out to a mental health professional. There are people out there that can help you through this, including those in the Salary Transparent Street community.

That wraps it up for this week. Until next time, stay awesome, stay strong, and keep advocating for yourself no matter what! I’m Daniella Flores, a former engineer who writes about tech, money, and careers, a current member of the CNET Money Expert Review Board, and career researcher that’s appeared in TIME, CNBC, and Investopedia (among many others). I’m extremely passionate about workers' rights and financial freedom, so it’s a pleasure to be able to bring you this type of content through the Salary Transparent Street blog (thank you for the opportunity, Hannah!) You can also follow me on Linkedin. Chat soon! 👋

If this guide helps you improve your negotiation skills, let us know! Send us an email ➡️ hello@salarytransparentstreet.com

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