Get Laid Off — First 7 Days

From the moment you're let go through the first week — review your severance, handle COBRA, file for unemployment, protect your references, and reset your budget.

Day 1 — Immediate

• Do not sign the severance agreement on the day you're let go — federal law (ADEA for workers 40+) gives you 21 days to review; always use at least a few days
• Ask HR for written confirmation of your last day, severance terms, and the status of unvested equity and benefits in writing before leaving the building
• Forward any personal emails or documents from your work email to your personal account while you still have access — do not take confidential company information
• Download your pay stubs, W-2s, and any performance reviews from the employee portal before your access is revoked

Severance Review

• Have an employment attorney review the severance agreement before signing if the amount exceeds $10,000 or if you suspect discrimination in the layoff
• Negotiate severance if offered at the low end — severance is negotiable, especially if you have tenure, unique knowledge, or strong performance history
• Clarify whether the severance includes continued health insurance or only the severance payment — these are separate terms

Health Insurance

• You have 60 days from the layoff date to elect COBRA — COBRA continues your existing coverage but at full cost (typically $600–$2,000+/month for a family)
• Compare COBRA cost to Healthcare.gov marketplace plans — a layoff is a Special Enrollment Period; Marketplace plans with income-based subsidies may be significantly cheaper
• Do not let your coverage lapse — even one day of uninsured exposure can lead to a penalty in some states and gaps in coverage for ongoing care

File Unemployment

• File for unemployment benefits the week of your layoff — processing takes 2–4 weeks; the sooner you file, the sooner payments begin
• File with your state's workforce agency online — search '[your state] unemployment insurance filing'
• Report your severance pay accurately — most states reduce or delay benefits during the severance period; misrepresentation is fraud

References

• Email your direct manager and key colleagues with a brief, warm note within 48 hours of the layoff — maintain relationships before time passes and things get awkward
• Ask 2–3 people if they're willing to serve as references and request LinkedIn recommendations now while the work is fresh

Budget Reset

• Build a bare-bones budget immediately: fixed essential expenses (rent, utilities, minimum debt payments, food) vs everything discretionary
• Calculate your runway: savings divided by monthly essential expenses equals months of runway — know your number before you can make calm, strategic decisions
• Pause non-essential subscriptions the first week — cancel or pause streaming, gym, and any software subscriptions you won't actively use during job search