Job Search After Being Laid Off

Common severance components: salary continuation (typically 1-2 weeks per year of service), health insurance continuation (COBRA or company-paid for a period), outplacement services, unused PTO payout, and equity vesting acceleration. Severance is negotiable, especially for senior roles. Before signing, ask for: additional weeks of severance pay, extended health insurance coverage, positive reference language in writing, and retention of company laptop. You typically have 21 days to sign a severance agreement (45 days if over 40, under the OWBPA). Consult an employment attorney (many offer free consultations) if the package includes a non-compete or broad release of claims.

File for unemployment in your state within the first week. Benefits typically cover 40-60% of your previous salary up to a state maximum (ranges from 275 USD per week in Mississippi to 1,015 USD per week in Massachusetts). Most states have a 1-week waiting period before benefits begin. You can file online at your state's unemployment office website. Required information: last employer's name and address, employment dates, reason for separation, and your SSN. Receiving unemployment does not affect your ability to accept severance pay in most states. Benefits last 12-26 weeks depending on your state.

Calculate: savings balance, severance duration, unemployment benefits, and any other income. Determine how many months your runway covers at your current spending level. Then create a reduced budget: cut discretionary spending (subscriptions, dining out, entertainment), defer large purchases, and contact lenders about hardship programs if needed. Knowing your exact runway (for example, I have 5 months before I need income) reduces anxiety and allows you to make strategic job search decisions rather than panic-driven ones. Most professionals find a new role within 2-4 months with active searching.

Being laid off triggers a grief response similar to other losses: shock, anger, bargaining, depression, and acceptance. This is normal even when the layoff is clearly not your fault (company restructuring, budget cuts, market conditions). Give yourself 3-7 days to feel the emotions before launching into a job search. Talk to a trusted friend, family member, or therapist. After the initial processing, redirect the emotional energy into structured job search activity. People who begin active searching within 1-2 weeks of layoff find new roles 40% faster than those who wait a month or longer.

Unemployment disrupts the daily structure that provides identity and purpose. Create a new routine: wake at a consistent time, dedicate 4-6 hours per day to job search activities (applications, networking, skill development), exercise daily (reduces depression and anxiety), and maintain social connections (isolation worsens mental health). Treat the job search like a job: specific hours, specific goals, and specific activities. People who maintain structure during unemployment report lower anxiety and find roles faster than those who let days blur together.

Refresh your resume immediately while accomplishments are fresh in your mind. Add your most recent role's key achievements with quantified results. Tailor the resume for your target roles (not one generic version for all applications). If your most recent role was short (under 1 year), consider whether to include it based on relevance. For roles eliminated in layoffs, there is no need to explain the departure on the resume. Focus the resume on what you achieved, not how the role ended. Have 2-3 trusted colleagues review it for clarity, impact, and accuracy.

When asked why you left: My role was eliminated as part of a company-wide restructuring that affected [number] people. I am grateful for what I learned there and am now focused on finding a role where I can [specific contribution]. Keep it to 2-3 sentences. Do not speak negatively about your former employer. Do not over-explain or be defensive. Layoffs carry less stigma than resignation for cause, and most hiring managers understand they reflect business decisions, not individual performance. If asked about your performance, reference specific accomplishments and offer to provide references from your former manager.

Send a message to your professional network within the first week: I was recently laid off from [company] as part of a restructuring. I am looking for [specific type of role] in [industry or function]. If you know of any opportunities or people I should talk to, I would really appreciate a connection. Post a version on LinkedIn (layoff posts routinely receive high engagement and generate leads). Network referrals produce 70-80% of job offers and move 4-6 times faster through the hiring process than cold applications. Do not be embarrassed. Most professionals are laid off at least once and are willing to help.

Quality outperforms quantity in job searching. For each application: read the job description carefully, tailor your resume keywords to match the specific requirements, write a customized cover letter (3-4 sentences connecting your experience to their needs), and apply directly on the company's career page in addition to job boards. Track every application in a spreadsheet (company, role, date, contact, status). After applying, find the hiring manager or recruiter on LinkedIn and send a brief note expressing your interest. This personalized approach yields a 15-25% response rate compared to 2-5% for generic mass applications.

Dedicate 1-2 hours per day to professional development during your search. Options: complete a relevant certification (Google Career Certificates: 6 months on Coursera, 49 USD per month), take an online course in an in-demand skill, contribute to open-source projects, start a professional blog or portfolio, or volunteer in a capacity that builds relevant experience. Upskilling during unemployment turns a gap into a growth story in interviews: During my transition, I used the time to earn my [certification] and deepen my expertise in [area], which is directly relevant to this role. This guide is informational only, not career or legal advice.