Handling Layoffs - A Guide

The tech world is abuzz with layoffs (Google lays off 12,000, Microsoft cuts 10,000 jobs, Amazon sheds 18,000 jobs). I've seen desperate posts ("need a job in 30 days or I have to leave the country"), hopeful posts ("like or comment to help my search"), and posts with every emotion from denial to acceptance on the grief scale.

I wondered what I could do to help people who've lost their jobs beyond liking, commenting, and encouraging them. So, I spent a fair bit of time over the weekend to distill the best advice on handling a layoff. Please comment or send me a DM if you have more to add. Some of this is necessarily US-centric, because of where I live, but a lot of it is generic and can be used anywhere in the world. If this helps even one person either prepare for or deal with a layoff, my job is done.

Before

Preparing for a layoff starts well before it actually happens. I prepare every year for my own job elimination (the same way I prepare for my untimely death) by doing the following:

• Update my CV (both as a document and on LinkedIn). It's best to do it at the same time you complete your annual review, as your achievements will be fresh in your mind at the time.
• Throughout the year, I engage regularly on LinkedIn on cybersecurity topics. I do that to build my own and my company's brand, but also so that I have a network to reach out to if I'm in need.
• I attend meetings and engage with professional associations, whether it be FS-ISAC, CISO Executive Network, or Private Directors Association. It sometimes feels like a chore because of my sometimes crippling shyness, but it's an investment that's worth it.
• During annual enrollment for benefits, I always look to see which of my benefits I would need to replace were I to be laid off. For example, life insurance - although I get some life insurance coverage through my company, I independently purchased more for myself 15 years ago. Remember that the older you are, the more expensive certain benefits become on the open market.
• (Not every year) I ask people for recommendations on my work. We all know the just laid-off person who's running around asking for references and recommendations urgently. Don't be that person - as opportunities present themselves, get endorsements of your expertise.

During the Termination Conversation

• Listen and understand what you are being told. Emotions will be high, with shock and fright. You will be in a daze because few people see this coming. Which is why the next bullet is so important ... ????
• Do not sign anything or accept anything on the spot. You want to take your time to review your options, not be forced into a sub-optimal decision. I cannot emphasize this enough. "I will review this and get back to you."; "I understand, but I am not ready to sign until I review overnight." are good phrases to use. Remember that in most jurisdictions it is illegal to require immediate acceptance. Do not be bullied.
• Take the day off to process your options. It is tempting to rush off online to blow off steam, start applying for jobs right away, that sort of thing. Give yourself a day to let your emotions settle (especially ones involving shame and anger).
• Ask for the termination agreement and offer in writing (email is OK). You want to be able to read it when you are ready. You want to be able to read the fine print. You want to be able to take it to your lawyer (if necessary).

The Day After

Read this entire section before taking action, as the steps are not necessarily in the order in which you should perform them.

• File for unemployment benefits. Benefits can be slow to be paid out by the government. It's really important that you file for unemployment benefits as soon as possible, because it may be several weeks until you see your first payment.
• Negotiate the terms of your agreement, if possible. I will note that in most cases, these have been reviewed by lawyers for an entire employee group and your scope is limited. However, nothing ventured, nothing gained. Perhaps you have circumstances that allow for exceptions (e.g., if you have a chronic, expensive illness, your company may be inclined to give you additional employer-paid insurance; or, absorb the cost of ongoing higher education). Look for circumstances unique to you - those are the ones more likely to be approved.
• Consider your severance options. You may need to do some math on this, but there could be tax implications to lump-sum severance versus that paid out over time. In most cases, you'd rather take the cash up-front - it just helps psychologically knowing you have a stash of cash in your bank account.
• Leverage placement services including resume reviews. If you are offered these services, take them up immediately. A well-written resume is worth its weight in gold and can cost hundreds of dollars if you pay for it yourself. It can shave several weeks off your job-hunting journey.
• Understand your health insurance options. This is a huge deal. Here are the tradeoffs

1. COBRA is the most common option and most people default to it. What is it? COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months). You usually pay the full premium yourself. But it may not be the most affordable choice! There are 3 other options to consider.
2. The Affordable Care Act (ACA on Healthcare.gov) provides excellent options at different price points. You should absolutely take a look at this before you jump into COBRA.
3. Can you switch to your partner's medical insurance plan?
4. If you're confident you'll get a job soon, is it worth the cost/risk to self-insure yourself? This may be viable if you are young or in excellent general health.

• Understand what happens to your company stock or options. Do they vest immediately? Do you lose them on termination? Can you defer exercising them? There are financial and tax implications to all these answers, so ask these questions to your HR partner. Note - you may be able to negotiate this.
• Create a schedule and goals for your next job search. It's tempting to surf job boards all day long and agonize over every unanswered email. Don't do that. Instead, treat applying for jobs as a part-time gig. Use realistic goals, such as: Applying for X jobs a week; browsing job boards between 10 am and 2 pm daily; networking with 2 people a week; posting to a special interest group 3 times a week. The quickest path to frustration and burnout is overdoing your job search.
• Don't spray and pray. Pick and choose the right opportunities to apply to. And be patient - your time will come (I know, it feels like the wait is forever).
• Review any future employment restrictions (e.g., non-compete, non-disclosure). You may be able to negotiate some of them away if you are not being laid off for cause. (Thanks to Kerstin Bagus for this suggestion and the next one.)
• Update your LinkedIn profile to note that you are open to work. You can do this with the LinkedIn "Open to work" badge, with a simple post, or in the About section of your profile. I recommend the badge and the About section because they stay long after your post has aged out of people's feeds. I would also consider adding some key achievements/publications to your "Featured" section for hiring managers to see a sample of your work.
• (Only valid until Jan 31, 2023) If you need a mortgage forbearance, you only have until the end of January to apply for it under recently passed COVID legislation. Do it today.

The week after and onwards

• Ask for recommendations and references. Continue to ask for recommendations and references from your former boss, others in your former company, and industry resources. Embrace the assistance you receive. One day, you'll pay it back when someone else needs your help.
• Roll over your retirement plan (401K ???? IRA). If you plan to work for multiple companies in your life, it's best to cut the cord with each company as you leave it and roll over your retirement funds into an IRA (Vanguard and Fidelity have excellent ones with superb investing options and rock-bottom fees). Do not cash it out, no matter the temptation - the tax implications are horrendous.
• Continue to enjoy your hobbies, work out, and eat healthily. I have these three together because they're part of convincing yourself that your life has changed trajectory but there are some constants. Relaxation, fitness, and health are essential for your soul as you go through this experience.
• Verify your final paycheck including unused vacation payout. Mistakes happen. Corporations make them all the time. Go over your final paycheck carefully and make sure you were paid what you are owed.
• Don't bash your employer. Unless you came from a toxic environment (and to be honest, even if you did), don't bash your prior employer, in public or private. It's a bad look and it gains you nothing. Talk about your growth, your goals, and your expertise. That makes you a star.

References

• Ashley Brown pushed an awesome post that inspired me to write this article.
• HBR article on what to do after a layoff.
• Life after a layoff by Career Contessa.

Questions? Comments? Pop them ???? and I'll answer them.

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