The labor market is as tough as parallel parking on a hill during rush hour — high pressure, low margin for error. People are getting laid off even from traditionally stable federal jobs, not to mention the ongoing wave of terminations in the corporate sector. Whether your pink slip came with a heads-up or hit you like a plot twist, one thing’s for sure: it sucks.
But being laid off isn’t the end of your career, not even close. In fact, this moment can be a powerful pivot point. With the right mindset (and some solid next steps), you can turn your layoff into a launchpad for something better.
This guide walks you through what to do right after a layoff — from sorting your benefits and rewriting your resume to figuring out what you actually want next. Let’s get you back in the driver’s seat.
How Many People Got Laid Off in 2025?
2025 didn’t wait — the layoff wave hit hard and early across sectors. January alone saw nearly 49,800 cuts in the U.S., according to Challenger, Gray & Christmas — a 28% increase from December 2024.
Industries hit hardest include tech, retail, transportation, and manufacturing. Big names like Microsoft (6,000 jobs), Panasonic (10,000), Meta (3,600), and Starbucks (1,100 corporate roles) have all trimmed headcount in 2025. Southwest Airlines and Workday also announced deep cuts.
The federal government isn’t immune either. Agencies like Veterans Affairs, Homeland Security, and the IRS have downsized under new administration policies.
Looking ahead, it’s not all sunshine: 45% of US managers expect to downsize this year, citing economic uncertainty, automation, and policy shifts. Most plan modest reductions (below 5%), but the ripple effect could still be wide.
And these figures don’t even include other types of employee turnover like voluntary exits, terminations, or retirements.
The Subtle Nuances Of Employee Exits
The HR teams have many terms for communicating the end of your employment in the company. So no wonder that loads of people are confused. So let’s clear up the lingo first (since it’s very important for your next steps after being laid off from work!).
Laid Off vs Fired
There’s no fault of the employee in being laid off. Typically, layoffs happen when a company’s performance sinks, prerogatives change, or budgets become tight, and they need to make some internal changes, e.g., :
- Downsize
- Reorganize departments
- Eliminate certain positions
In either case, you are being laid off from work due to circumstances beyond your control.
Now, getting fired is a somewhat different scenario. In most cases, employees get terminated due to poor performance, workplace misconduct, or some other behavioral problems. There’s one exception, though: at-will employees.
If you have that three-word combo in your work contract, you can be fired at any time, for any reason (with several exceptions).
Laid Off vs Terminated
Termination is a more formal term for “getting fired”. You may have also heard of for-cause termination — you can get fired without any advance notice or severance pay if the employer can prove that you caused a serious offense during employment. It’s considered capital punishment in employment law. For cause termination is rather rare since most parties prefer to part amicably.
After you were terminated, you can expect to receive the severance pay specified in your contract. However, since employers are not obliged by law to provide it, you might not be getting anything.
Laid off vs Furloughed
Being furloughed is a kind of middle ground. Technically, you are still employed by the company. However, you are not expected to come to work or receive a salary until further notice. The company holds you on standby, rather than fully letting you go.
What can you do while being furloughed?
- Receive employee benefits
- File for unemployment
- Look for side gigs/freelance work
- Take on contract work
- Apply to another full-time job.
This ain’t as bad as being fully out of work, but the uncertainty can be frustrating!
Why Being Laid Off is Good
It certainly doesn’t feel “good” when you receive the dreadful news. But don’t allow the anger and grief to fully consume you.
If you give it some more thought, there may be several small but powerful upsides to your forced exit, like:
- You get a forced reset. Sometimes, we stay in jobs that no longer serve us well. A layoff pushes you to reconsider what you really want to do professionally.
- You finally have time to breathe. No more back-to-back meetings or inbox chaos. Use the break to rest and mentally reset before taking the next steps.
- You can reassess your priorities. This is your chance to rethink what matters more to you in life — career growth, flexibility, impact, or family time?
- You will find something better. Many people land higher-paying, more fulfilling roles after a layoff. It’s a fresh start, not a dead end.
- You can grow your network. Job hunting often sparks conversations and connections you wouldn’t have made otherwise — and who knows where those might lead!
- You learn resilience. Bouncing back builds confidence and proves you’re stronger than you thought. Plus, resilience is one of the core meta skills that are already in demand!
OK, So I Just Got Laid Off. What To Do Now?
OK, so the layoff happened. Whether you saw it coming or it hit out of nowhere, it’s normal to feel a mix of panic, relief, and “what now?”. Before you spiral or start rapid-firing job apps at midnight, here’s what to do first — calmly, strategically, and with your next chapter in mind.
Review Your Severance Package
Your severance pay is the first thing that will keep you afloat through unemployment. Most packages include your final paycheck, compensation for unused vacation or PTO, and additional pay based on how long you were with the company. You might also get extended healthcare coverage or access to career support services.
Here’s what to verify:
- The amount of severance and how it’s calculated
- Payout timing
- What happens to your health insurance and retirement benefits
- Any restrictions on your next job
- Impact on your eligibility for unemployment benefits
Be careful to read the fine print. Some severance agreements come with clauses that limit your future job options (aka non-compete) or require you to waive certain rights. Don’t rush to accept those. And if anything feels unclear or unfair, consider running it by an employment lawyer.
File for Unemployment
State unemployment laws vary, but generally, if you are laid off and file for benefits immediately, you can receive them for up to a year. So don’t delay that!
Once you apply for the benefits, you start a 26-week period of regular unemployment insurance payments, during which you receive a weekly check. The payouts stop when you’ve found a new job.
But you can collect benefits through multiple periods of unemployment within the same year. So that if you get furloughed/laid off again, your payouts will resume until you find a more reliable gig.
Depending on your background, you may also be eligible for the Extended Benefits (EB) program. It applies to people who’ve exhausted the standard 26 weeks of regular unemployment insurance. You may be eligible for an extra 13 to 20 weeks, depending on the state’s unemployment rate under certain conditions.
Be sure to research and weigh in on all options! Moreover, don’t be afraid to reapply if your first claim was denied. The rules change all the time!
Sort Out Your Healthcare Coverage
Losing your job often means losing your health insurance. But you do have options to avoid hefty medical debt, should anything go wrong with your health while you’re in-between jobs.
First up: COBRA, which lets you keep your employer’s plan for up to 18 months (but you’ll likely pay the full premium out of pocket). It’s pricey, but useful if you need to maintain coverage without gaps.
If COBRA’s too expensive, browse your local public health marketplace. You may qualify for subsidies based on your new income. In some cases, a spouse or partner’s plan might be your easiest fallback.
Don’t delay decisions on this. Coverage windows are time-sensitive, usually around 30 to 60 days from the date of termination.
Reflect On Your Next Career Move
Before rushing into job boards, take a beat to reassess. What did you love (and hate) about your last role? What kind of work energizes you — solving problems, managing teams, building things, helping people? Being laid off is your chance to pivot, realign, or level up.
Start by listing your top skills, values, and career objectives. Do you want more flexibility? A bigger mission? Less burnout? Use this moment to evaluate not just what you can do, but what you want to do.
Talk to trusted colleagues or mentors, try a few informational interviews, or even dabble in side gigs to test new waters. Or go for professional career management support (if you have the funds). Consider upskilling or getting certified in a new field if you’re eying a career change.
Remember: You don’t have to go back to the same job just because it’s what you’ve always done. You get to choose your next chapter — make it count.
Refresh Your Resume
Time to give your resume a glow-up. Reflect on what you achieved and what you learned during your last stint. Then work on the new work experience section.
Update your most recent role with clear accomplishments, not just job duties. Use numbers wherever you can — did you increase sales, cut costs, lead a team? Prove it with data when possible.
Tailor your resume to the roles you’re aiming for now, not the one you just left. Highlight transferable skills, especially if you’re switching industries or leveling up. And yes, it’s totally fine to include a brief line about the layoff (“Role ended due to company-wide restructuring”) — no need to dance around it.
Keep resume formatting clean and modern (skip the headshot, use standard fonts), and don’t forget to update your LinkedIn profile to match.
How Can I Address My Unemployment Gap on a Resume?
Since layoffs often happen unexpectedly, you’d likely spend several months looking for a new job. But don’t sweat too much over your resume gaps.
You can easily omit short-term unemployment by using years-only when listing your work history on your resume. This approach can also help draw attention away from multiple gaps. Alternatively, you can leave a quick explanatory note about being laid off for the HR, next to the last job entry.
You can learn more about explaining gaps in employment on your resume from our previous post, discussing 4 different strategies!
Practice Your “Why I left” Story
Look, if you’ve been laid off, there’s nothing to be ashamed about since it wasn’t your fault. Most employers, especially in the wake of the latest events, will be quite accommodating to that fact.
So when the inevitable question about reasons for leaving your last job pops up, don’t go into panic mode. Instead, clearly lay down the facts. For example, you can state something like:
“I actually didn’t quit my last job, I was laid off. The company lost grant funding for the project I worked on, and 4 people (including me) were, unfortunately, let go. However, my former employer provided me with a stellar recommendation.”
This reply is great because:
- It explains the reason for leaving the job.
- And draws attention to the fact that you are a great asset.
To Sum Up
Being laid off isn’t the end of your career. Treat it as a temporary professional setback, not a personal failure. Give yourself room to reflect and readjust before jumping into job search. Look into new roles — a lot of things probably changed since your last time in the job market!. And if you need some extra help, you can always find a ton of great advice on our blog!
The post Got Laid Off? Here’s What to Do Next appeared first on Freesumes.com.