How To Navigate Career Growth When Your Company Announces Layoffs

Layoffs are an exceedingly common part of the U.S workforce. Research from 2023 found that 40% of Americans have been laid off from a job at least once. That number may be higher in 2026, as according to reports from the Bureau of Labor Statistics, there have been 8.63 million terminations this year so far. 

Yet, as frequent as they occur, layoffs are still highly stigmatized. As per a Monster.com study, over half (54%) of those surveyed stated that they would feel embarrassed discussing their layoff in social settings, and 1 in 3 (33%) stated that they would hide the layoff from their resume.

But getting let go from a job can do more than simply cause embarrassment. Terminations can affect one’s mental and physical health. Layoffs have been linked to anxiety, depression, cardiovascular and cerebrovascular illnesses, and premature death, the latter likely due to factors such as losing health insurance and other financial stressors. 

So yes, layoffs are disruptive, and their effects may be long-term; however, that does not mean that they are the be-all, end-all. Getting laid off does not have to put your career on hold. 

Here are four tips for navigating career growth after layoffs:

Take a deep breath and sit with your emotions. You may be experiencing feelings of unworthiness, shame over what others may think, and fear of not being able to get back on your feet. You may be questioning your identity: Who am I without this job? You may be grieving the loss. 

If you can, take some time off. Go on a short vacation or staycation, indulge in self-care, live a little! If, for whatever reason, extended time off is not possible, give yourself at the very least a day or two to sit with the discomfort.

Resist the urge to blame yourself. Layoffs, particularly mass layoffs (defined as those that cut either 500+ jobs or 33% of a workforce), are not personal. In fact, according to employers, the main reason for terminations in 2026 is Artificial Intelligence, followed by market and economic conditions. It’s seldom ever about you. Even if you were cut for performance, understand that the decision was ultimately a business one, thus not a measure of your worth by any means. 

Compile a list of all the logistical items you need to follow up on. These may include:

• Healthcare appointments to attend before insurance runs out 
• Procuring alternative insurance for once it does (See: COBRA, Medicaid, the Health Insurance Marketplace)
• Careful review of final checks, exit paperwork, severance package, transition of benefits such as 401k, and terms of equity (if applicable). Note: Ideally, you would have asked for time to review these documents before signing them, and whenever possible, would’ve negotiated better terms.
• Applying for unemployment benefits.
• Procure counsel if you feel you were wrongfully terminated. 

Pro tip: As there are many moving pieces, a spreadsheet may be helpful!

Once ready to get out there, start optimizing your career toolkit. This includes:

• Updating your resume
• Prepping for Job Interviews
• Networking: Spread the word that you are looking for work. Tap into your existing network by reconnecting with former colleagues, leaders/mentors, and other industry contacts. Expand your network by signing up for professional events and online communities.
• Investing in yourself: Are there any certifications you can get? New skills you can acquire? Investing in your professional growth can build confidence, restore momentum, and make you more marketable.

Pro tip: Make a list of all your professional accomplishments, including projects completed, skills gained, measurable improvements made (revenue, efficiency, etc), and awards/recognitions received. Doing this will help with the items above as well as offer reassurance regarding your professional capital. 

Layoffs, like any other adversity, come with lessons. For leaders, in particular, terminations are a great time to think through accountability and strategy. The decisions that we make do not exist in a vacuum; they impact not only the business but the people who show up for it every single day. What can you take from this experience to help you become a stronger professional?

Other items to journal/reflect on based on your time with the company:

• What are you most proud of? 
• What moments do you wish to grow from?
• Where do you see your career going from here?

Pro tip: Be very specific: What are your non-negotiables? Financial requirements? What kind of company culture are you seeking? Is this move long-term or short-term? 

This clarity will allow you to be strategic and prevent you from panic-applying, which can lead to low morale and fatigue, as you embark on this next chapter. 

Layoffs can be distressing, but they are not definitive. For some, it has even opened them up to opportunities they would not have discovered otherwise. 

You can, and you will, bounce back.