Getting laid off from your job is stressful. Sometimes you don't know when a layoff is coming, but if you have advance warning, take seven preparative steps. For financial planning and related resources, see Insurance & Personal Finance: Investments, Emergency Funds, Business and Insurer Risk.
Seven steps to prepare for a layoff
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Update Your Resume Update your resume now if it's been a while since you revised it. Add recent responsibilities, new skills and employment details that showcase your current professional abilities.
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Update Your LinkedIn Profile Many employers use LinkedIn to check qualifications. Update your profile to complement your resume, add links or work samples, and connect with colleagues and managers you can contact for recommendations or referrals.
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Improve Your Professional Skills Use available time to improve marketability. Finish certifications or take online courses in areas such as marketing, Excel, design tools or other skills relevant to your field.
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Negotiate Even when facing a layoff you may be able to negotiate severance, continuation of some benefits, or a financial payout. Review your employee agreement or handbook and have a calm, documented conversation with HR.
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Continue to Work Hard Avoid publicly complaining or burning bridges. Remaining professional can help you preserve relationships, possibly postpone a layoff, lead to another position, or secure a positive referral.
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Increase Emergency Savings Boost your emergency fund by setting aside automatic transfers, selling unneeded items, stopping nonessential credit use, and cutting discretionary expenses to extend your runway without regular income.
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Stay Positive During Your Job Search Allow yourself to process the loss, then focus on your skills and experience as you apply, prepare for interviews, and look for new opportunities.
A layoff is challenging, but these seven tips can help you navigate the change. Discuss additional options with your Human Resources manager before you are laid off, and if you need organization-specific coverage information see Emergency Service Organizations Insurance or Research Laboratory Insurance.
Frequently Asked Questions
What should I do first if I suspect a layoff?
Start by updating your resume and LinkedIn, then review your finances to increase emergency savings and identify nonessential expenses you can cut.
Can I negotiate severance or benefits?
Yes—review your employee agreement and company policies, then discuss options with HR; negotiations may cover pay, extended benefits, or references.
How can I stay motivated during a job search?
Set a daily routine, break job hunting into small tasks, continue skill-building, and lean on your support network for encouragement.