Turns Out, You’re Too Good for That Job Anyway

What to do in the first 48 hours of a layoff

February 04, 2026

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And whether you’ve experienced this professional heartbreak or you're preparing for the possibility, consider this week’s newsletter your guide on what to do when you get laid off. More below 👇

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What to do after a layoff

There are many reasons why a layoff happens. Your employer could be downsizing, restructuring, or undergoing other operational changes. We’ve seen many layoffs recently in the federal sector and at tech companies, but it can happen anywhere!

Pro tip: Get familiar with the Worker Adjustment and Retraining Notification (WARN) Act, which requires employers with 100 or more employees to provide 60 days notice of any mass layoffs.

But, what do you do when you get laid off? We consulted employment attorney Delyanne Barros to give you a step-by-step guide on what you should do to maximize this unfortunate situation. 

1. Deal with human resources (HR)

After getting laid off, HR will likely schedule a meeting with you to go over the details and get your signature for a severance agreement. Don’t sign anything before contacting an attorney.

Why?

Because they can help you negotiate better terms (such as more severance pay, extended health benefits, and more) and avoid clauses with constricting legal implications. Here’s how to handle the meeting:

  1. First, tell your point of contact, “Thank you for sending this over. I’ll need a few days to look over it carefully and will get back to you promptly.” 

  2. Then, contact the National Employment Lawyers Association (NELA) to connect with an employment lawyer. 

2. Request a “layoff letter”

Next up is getting your layoff in writing.

Within this letter, make sure you have documented the following information:

  • The reason for your termination

  • The effective date of termination

  • The date of your last paycheck

  • Your eligibility for benefits or severance

  • Contact info for HR

If you’re wondering, “Why would I need a letter!?” here are three crucial reasons:

  1. To qualify for unemployment benefits

  2. To show potential future employers in your job search

  3. To handle any disputes or legal issues related to the layoff

3. Understand your severance package

Get a severance package? Great! While it’s pretty common to receive one during a layoff, they’re actually not legally required unless specified in an employment contract or union agreement (another reason why unions are so important!).

But, like negotiating salary in a job offer, you can also negotiate your severance package. This is where having an employment lawyer comes in handy, as they can negotiate on your behalf. 

If you’re hesitant to hire an employment lawyer for this, don’t worry! Most attorneys will offer a free consultation and may provide guidance on severance negotiations during that meeting, says Baros.

4. Figure out your benefit options

Next up is handling your healthcare coverage, 401(k) rollover, finances, and more.

For example, your health insurance doesn't have to end when your employment does. Ask about:

  • The exact end date of your employer-sponsored health plan

  • How to sign up for Continuation of Health Coverage (COBRA)

  • Alternative options through the Healthcare Marketplace

  • Joining a spouse's or partner's plan, if applicable

And don’t forget to ask about compensation for unused paid time off, too!

5. Ask for a letter of recommendation

You’ll need as many resources on your side as possible when you reenter the job market.

This is where your boss can help!

Set up a quick 1-on-1 during your last weeks or months at your job to see if they can write a letter of recommendation for you and if you can use them as a reference.

Another option is to ask them to write a LinkedIn recommendation for you to help your profile attract recruiters.

Next steps

It sounds daunting, but you’re not facing it alone. Our guide walks you through everything so you cover all your bases.

And once you’re ready to hit the job search, we’ve got you covered, too. 

Our Salary Database and free Market Research Guide can help you set your market range and see what options are out there.

Are you underpaid? 💸 Find out by taking our free quiz

Nearly 20 million workers were laid off in 2025 🚨 How does your state compare?

“Why should we hire you?” 🤔 Best ways to answer this interview question

This single mom we interviewed makes $251K 💚 How she does it with 3 jobs

See you next week for more career tips, money moves, and transparent advice! 💚

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