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Navigating Layoffs: What to Do Next

Getting laid off sucks. There's no sugarcoating it. But it's not the end of your career. Here's exactly what to do in the first 24 hours, first week, and first month - from someone who has helped thousands of engineers through this.

By SIA15 min readUpdated Jan 2024

I've been on both sides. I've delivered layoff news. I've helped hundreds of engineers land new roles after layoffs. And I've watched this pattern repeat through every tech downturn. The people who bounce back fastest aren't the ones with the best resumes - they're the ones who execute a smart, immediate plan. Here's that plan.

First 24 Hours: Damage Control

You just got the news. Your brain is foggy. Your emotions are all over the place. That's normal. But you need to act fast on a few critical things:

1. Secure Your Data (Do This TODAY)

Before you lose access to company systems:

  • Download your portfolio work (code samples you can legally share, designs, presentations)
  • Screenshot your LinkedIn connections - you'll want to export them
  • Save any performance reviews, peer feedback, or kudos to a personal drive
  • Document your projects and impact with specific metrics while it's fresh
  • Export your work calendar - it shows your actual scope and responsibilities

Note: Only take what's yours or publicly shareable. Don't steal proprietary code or violate NDAs. But do preserve evidence of your work.

2. Understand Your Severance

Read the severance agreement carefully. Key things to check:

  • How much are you getting? Typically 2-4 months salary at most companies
  • When does it pay out? Lump sum or monthly?
  • What are you signing away? Most require you to waive legal claims
  • Can you negotiate? Sometimes, especially if you're senior or have leverage
  • How long is your health insurance covered? This matters a lot

3. Update Your LinkedIn Immediately

Within 24 hours, do this:

  • Change your headline to include "Open to Work" and your target role
  • Turn on the "Open to Work" badge (public, not just recruiters)
  • Post a short update: "I was impacted by [Company]'s restructuring and am exploring [role type] opportunities. Open to connect!"
  • Message your strongest connections directly asking if they know of openings

Don't be embarrassed. Layoffs are business decisions, not reflections of your worth. The best opportunities come from moving fast while your network is still warm.

4. File for Unemployment

Even if your severance seems generous, file for unemployment now. It can take weeks to process. In many states, you're eligible after severance runs out. Don't leave money on the table because of pride.

First Week: Build Your Foundation

Calculate Your Runway

Be brutally honest about your finances:

  • Savings: How much do you have in the bank?
  • Severance: What's your total severance after taxes?
  • Monthly burn: What are your actual expenses? (Rent, food, insurance, minimum debt payments)
  • Total runway: How many months can you survive?

This number determines everything. 6+ months of runway? You can be selective. 2 months? You need to move fast and may need to make compromises.

Update Your Resume (The Right Way)

Your resume needs surgery, not a Band-Aid. Here's what to fix:

Do This:

  • Lead with impact: "[Action] that resulted in [measurable outcome]"
  • Use numbers everywhere: percentages, dollar amounts, user counts, time saved
  • Tailor it for each role - generic resumes get rejected
  • Keep it to 1-2 pages max (1 page if you have less than 5 years)

Don't Do This:

  • List every technology you've touched - focus on what's relevant
  • Use vague language like "helped" or "contributed to"
  • Include your full work history back to 2005
  • Have any typos or formatting inconsistencies

Make Your Target List

Create a spreadsheet. No, really. Track:

  • 30-50 companies you'd actually want to work at
  • People you know at each company (or 2nd degree connections)
  • Open roles that match your level and skills
  • Application date and status
  • Follow-up dates

Treat this like a job. Because it is. Your job is finding your next job.

The Job Search Strategy That Actually Works

Here's the brutal truth about job searching:

Applying through job boards has a 1-2% success rate. Referrals have a 10-20% success rate. Your entire strategy should be maximizing referrals and minimizing cold applications.

Tier 1: Direct Referrals (70% of your effort)

Reach out to people you've worked with. Use this exact template:

Hey [Name],

I was impacted by [Company]'s restructuring and am looking for [role] opportunities. I saw [Their Company] is hiring for [specific role].

Would you be open to referring me or connecting me with the hiring manager? Happy to send over my resume and talk through the role.

Thanks!

Send this to 10-20 people. You'll get 5-10 referrals. That's 5-10 real chances vs. 100 black-hole applications.

Tier 2: Warm Intros (20% of your effort)

LinkedIn's "2nd degree connections" are gold. Message mutual connections:

"Hey [Name], I noticed you know [Person] at [Company]. I'm exploring opportunities there - would you be comfortable making an intro?"

Most people will say yes if you make it easy for them.

Tier 3: Cold Applications (10% of your effort)

Only apply cold if:

  • The role is a perfect match for your skills
  • You can tailor your resume specifically for it
  • The company is growing (check recent funding, hiring trends)

Spray-and-pray doesn't work. 10 tailored applications beat 100 generic ones.

Interview Prep While Unemployed

You have time now. Use it strategically:

Week 1-2: Refresh Fundamentals

  • Do 2-3 LeetCode mediums daily
  • Review system design patterns
  • Practice behavioral questions
  • Mock interview with a friend

Week 3-4: Go Deep

  • Study the companies you're targeting
  • Build a side project to demo
  • Write about your past projects
  • Prepare your "greatest hits" stories

Warning: Don't Over-Prep

I've seen people study for 3 months straight and forget to actually apply. Prep should be 2-3 hours a day MAX. Spend the rest networking, applying, and interviewing. You learn more from real interviews than from LeetCode.

The Mental Game

This is the part nobody talks about, but it's crucial:

Create Structure

Without a job, days blur together. Set a schedule: wake up at the same time, "work" normal hours (job search, prep, projects), take breaks. Treat this like a job. Because it is.

Rejection Is Data, Not Judgment

You'll get rejected. A lot. Even great engineers get rejected 70%+ of the time. Each rejection is just information: wrong fit, bad timing, someone had a referral. It's not personal. Move on.

Stay Connected

Isolation kills morale. Join Slack communities, go to meetups, talk to other people job searching. You're not alone in this. And your network might lead to your next role.

Know When to Rest

If you've been grinding for 8 weeks straight with no offers, take a 3-4 day break. Seriously. Burnout makes you interview worse. Come back refreshed and reassess your approach.

What If It's Taking Longer Than Expected?

After 2 Months: Audit Your Approach

  • Are you getting interviews? If not, fix your resume and network harder
  • Are you failing interviews? If yes, prep harder or target easier companies
  • Are you getting to final rounds but no offers? You're close - keep pushing

After 4 Months: Expand Your Options

  • Consider contract/contract-to-hire roles
  • Look at adjacent roles (backend → full-stack, IC → EM)
  • Expand geographic search (remote or relocate)
  • Look at less "sexy" companies (fintech, healthcare, government contractors)

After 6 Months: Consider a Bridge

If you're hitting 6 months unemployed, seriously consider taking a "bridge job" - something that pays bills and keeps you employed while you keep searching for the ideal role. Employment gaps compound. It's easier to get offers when you're working.

Negotiating From a Position of Weakness

When you're unemployed, you feel like you have no leverage. That's not entirely true.

You Still Have Leverage If:

  • You have other offers (even if they're not great, mention them)
  • You have in-demand skills (ML, security, infrastructure)
  • You're willing to walk away (sometimes the best negotiation tool)
  • You did exceptionally well in interviews

Always Negotiate

Even if you're desperate, negotiate. Not aggressively, but ask: "Is there any flexibility on the base salary or equity?" Worst case, they say no. Best case, you get 5-15% more. That compounds over years. Never just accept the first offer.

The Truth Nobody Tells You

Most people land a job within 3 months. If you're executing this plan - networking hard, prepping smart, interviewing actively - you'll probably have offers by month 3.

Your next job probably won't be your dream job. And that's okay. You can always switch again in 12-18 months. Right now, your goal is getting back in the game.

This experience will make you better. You'll be more financially cautious, more strategic about your career, and more empathetic to others going through this. That's valuable.

Layoffs don't define you. Some of the best engineers I know have been laid off. It's a business decision, not a judgment of your worth. Keep moving forward.

Frequently Asked Questions

How do I explain being laid off in interviews?

Be direct and unemotional: 'My team was impacted in [Company]'s restructuring.' Don't bad-mouth the company or make excuses. Move immediately to what you're looking for next. Most interviewers in 2024 have seen layoffs - it's not the stigma it used to be. What matters is how you've used the time since.

Should I take the first offer I get or keep interviewing?

Depends on your runway. If you have 3+ months of savings and the offer is mediocre, keep interviewing. If you're financially strained or the offer is solid (good comp, growth opportunity, stable company), take it. You can always keep interviewing after joining - it's easier to get offers when employed. Don't let desperation show in negotiations.

Is it better to take a contract role or hold out for full-time?

Contract roles can be strategic - they pay the bills, keep your skills sharp, and often convert to full-time. But make sure the rate is worth it (should be 30-50% higher than FTE to account for no benefits). Avoid long contracts at low rates - you'll be trapped and can't interview effectively. 3-6 month contracts are ideal.

How long is too long to be unemployed before it hurts my prospects?

0-3 months: No issue. 3-6 months: You'll get questions but it's explainable. 6-12 months: You need a strong story (learning new skills, side projects, or selective). 12+ months: Major red flag unless you were building something or have extenuating circumstances. The key is what you did during the gap.

Should I lower my compensation expectations after a layoff?

Only if you've been searching 6+ months with no offers. In the first 3-4 months, maintain your market rate. You're not 'damaged goods' because you were laid off - most tech layoffs are business decisions, not performance. If you were L5 making $400K, don't apply for L4 roles at $250K out of desperation. Know your worth.

Need a Career Strategy After a Layoff?

Talk to SIA for personalized advice on your job search, interview prep, and career positioning. Get honest feedback on where you stand and exactly what to do next.

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