What To Do When You Are Unexpectedly Laid Off

City Personnel

What do Disney, ESPN, Zoom, Dell, PayPal, IBM, Spotify, Google, Amazon, Salesforce, Vimeo, Meta, Twitter, Hubspot, and Coinbase all have in common? All of these well-known companies had mass layoffs in 2023. Being laid off can be a traumatic experience and, in this case, is not a reflection of your performance or abilities as an employee but rather an unfortunate consequence of the current economic situation we find ourselves in today. Even though losing your job can be traumatic, it is important to know what to do if you are unexpectedly laid off.

First and foremost, you need to stay calm and composed when it comes to getting laid off. This is not the time for you to freak out on your employer or manager — it is crucial to stay composed. There is no changing your situation, so letting it get the best of your emotions won’t help at all. Take a deep breathe and calm yourself. Your mental health is more important than a job. After you calm yourself down, move on to taking actions that can help improve your current situation for a quick recovery or smooth transition into another opportunity.

Stay Calm And Composed

Gather together any documents that connect you to the company. This includes company credit cards, keys (office keycard), login credentials/passwords for company accounts, including payroll. You will need to give these back to the company. It will go a long way if you prepare a document with all your passwords and usernames and hand them to your boss. I am sure you have experienced the tedious duty of having to reset a password to a website. It is a process.

Gather Any Information Your Employer Will Need

Getting let go doesn’t feel great, but make sure you leave on a positive note in case they are other opportunities for you in the future. Collect physical items you have created/produced for them, such as marketing materials or new product prototypes. Depending on your company’s policy, you may be able to take these home with you after being laid off to use for your portfolio when you start applying to new jobs.

Gather Any Information You Will Need

Immediately inform all of the individuals that will need to know about what has happened with you. This includes anyone who works directly with you, for you, or relies upon your presence at work. Ensure they are aware of your current situation so they can take immediate action if necessary. If you happened to be laid-off for a specific reason, sometimes an employer will suggest you not to say goodbye to anyone before leaving the job. In this case, make sure to hand in all the information to your manager before you leave with all the information they will need to continue your job (passwords, accounts, etc.).

Inform Your Team

Assuming you have not been terminated for a certain cause, but, rather, your job has been eliminated for reasons outside your influence — restructuring, economic reversals, mergers, buyouts, relocations, and so on — a lay-off letter explaining the circumstances to you (and prospective employers) most likely will be part of your farewell package. Take the time to read carefully and digest anything that might be relevant to your next step as soon as possible (including any severance agreements, confidentiality or non-compete contracts, etc.). You can always go back and look over your materials later.

Farewell Package

The next step would be the collect your final check. Depending on the circumstances of your lay-off, you may receive the final check on your last day. Make certain is the correct amount. Ask if any benefits such as health or life insurance were ended with your employment or can continue on a COBRA basis.

Collect Final Paycheck

If you have a 401(k) with your former employer, you have options. If it is a traditional 401(k), you can leave your money where it is as long as your employer permits this (some do not, like Google). If you are leaving for another job and want to transfer the funds elsewhere, contact your former employer’s HR department before you leave. This way, they will know to expect the incoming paperwork and won’t reject it.

Figure Out Your 401(K)

If you receive a severance package, make sure to carefully review it. The information may be part of the lay-off letter you were given. Here are some items to consider: Your sign-on bonus, commission structure, and any bonuses should be included in this package. If they are not, ask for them. Be especially careful if your sign-on bonus was paid out over time (e.g., $5000/year). Ask about any remaining balance owed to you; it may or may not need to be repaid if you receive other severance pay.

Severance Package

The last step on what you should do when you are laid off, before you start applying for other jobs, is to register for unemployment. You can read more about that by simply searching the phrase “How to get unemployment benefits” . It is important that you follow any rules and regulations put forth by your state’s unemployment office.

Register For Unemployment And Start Applying

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