What to Do When You're Laid Off

Key takeaways

Being laid off can be an emotional experience. It requires you to balance logistics, such as your exit plan and any separation paperwork, while simultaneously managing the physical, mental, and emotional reactions commonly associated with job loss, such as sleep problems, increased stress levels, and shame [1].

• While layoffs are always a concern, they tend to happen more frequently during periods of economic downturn.

• Beginning in early 2025, the volume of layoffs has been increasing as several industries contract or pivot to new strategies that involve a reduced workforce.

• Although layoffs are typically undesirable experiences, there are some actions you can take to make the most of this transition and turn it into an opportunity to reassess your career goals.

Whether you're currently managing a layoff or are just fearful you may be subjected to one in the future, know that your feelings are valid– and that careful planning can help you manage them. Learn what to expect during a layoff and what to do if you’ve been laid off. Afterward, learn how to use AI to strengthen your interviewing skills with the Google Accelerate Your Job Search with AI Specialization. You'll be able to prepare for interviews and practice responding to questions using NotebookLM and Gemini Live.

What does getting laid off mean?

Getting laid off means your employer terminated your employment. It means, in other words, that you were let go from your job. Layoffs are generally understood to be the company’s fault—due to shifting priorities or poor planning—rather than the individual experiencing the layoff.

Some common reasons for layoffs include:

• Restructuring

• Mergers and acquisitions

• Economic downturn

• Company closure or downsizing

Layoff vs. firing vs. furlough

Whether you're laid off, fired, or furloughed, you can expect that you won’t be returning to your job indefinitely or for a period of time. In order to know how you should move forward, it’s important to understand the differences between each term:

• Layoffs, including reductions in force (RIF), are typically understood to be the employer's fault.

• Firings are typically understood as the employee’s fault, resulting from poor performance or disciplinary action.

• Furloughs are temporary leaves due to company circumstances. Furloughed employees cannot work nor receive pay, but they may still receive company benefits, such as health insurance. After the furlough period, employers expect employees to return to their positions.

What to do after a layoff

Once you’re past the flurry of layoff logistics, you’ll have more space to focus on your present needs and future goals. Here are a few things you can do to move forward after being laid off:

1. Make a financial plan.

Personal finances can be one of the most pressing stressors after a layoff. Since your financial situation is in flux, coming up with a new financial plan may help soothe some of those worries. Mapping out the funds available to you—such as your final paycheck, severance pay, and savings—and reorganizing your budgets can give you a realistic picture of your needs moving forward.

Explore part-time and freelance work

You may find that it makes sense to find a part-time job or freelance work while you seek full-time employment. Here are some ideas to get started:

• 27 Side Hustle Ideas and How to Get Started

• 15 Side Jobs to Make Extra Money

• 11 Passive Income Ideas to Increase Your Cash Flow

2. Assess your immediate needs.

Going through a layoff can feel like a sudden transition, and it’s important to take care of yourself during this major life change. Beyond your financial plan, pay attention to other immediate needs, whether they are physical, mental, or emotional. Developing new routines and engaging with self-care habits that align with this new phase can create the space you need to consider your next steps.

Some people use this transition as a reflection period. What do you value, and how can you express those values through your daily actions?

3. Reflect on your career goals.

The period following a layoff can be a productive time to reconsider your career goals. What did you learn about yourself and your work preferences through your previous position? What would you like to do more of, and what would you like to leave behind? What outcomes would you like to see for yourself moving forward?

By targeting your job search with those answers in mind, you may be able to turn this negative experience into a positive twist along your career journey. Here are some ways you can work toward your new career goals:

Learning new skills

The period following a layoff could be a great time to pick up a new skill, especially if you may be interested in a career change. Fortunately, there are many online resources where you can learn new skills—or continue practicing old ones—for free. Check out these popular free online courses on Coursera and start learning today.

As you evaluate your career, you may also want to explore recession-proof jobs and industries that tend to be more stable during periods of economic downturn.

Updating your resume

As you begin applying for jobs, you’ll likely need an updated resume. You may also want to update your LinkedIn profile and prepare a personalized cover letter template to present your qualifications and accomplishments to potential employers.

Here are some job search resources to get started:

• Types of Resumes: Choosing the Right Format For Your Needs

• How to Create a LinkedIn Profile: Guide + Tips

• How to Write a Cover Letter When You’re Changing Careers

Talking to others

As you search for a job, you may benefit from talking to your peers and colleagues about your new goals. Your network can be a powerful tool during your job search. A former coworker may introduce you to your next boss, or perhaps your friend who successfully transitioned into your desired industry can offer tips on the certifications you may want to pursue.

The more open you are about your goals, the more opportunities you create for people to help you.

Expand your skill set on Coursera

If you want to stay connected to industry trends, career field resources, and networking, subscribe to our LinkedIn newsletter, Career Chat. Explore some of our free resources for learners and job seekers, too:

• Optimize your search: 3 ways to use AI for your job search

• Explore your career path: Career Test: What Career is Right for Me Quiz?

• Watch on YouTube: Escape the Commute: 10 Work-from-Home Jobs

Whether you want to develop a new skill, get comfortable with an in-demand technology, or advance your abilities, keep growing with a Coursera Plus subscription. You’ll get access to over 10,000 flexible courses.

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