Over 50,000 layoffs in 2025 — Six steps you should take immediately after losing your job

Tech giant Microsoft is in the news this week for reportedly laying off over 6,000 employees, or 3% of its workforce. For several employees, the layoffs came as a surprise. Some even took to social media to share how they were laid off even after working for years with the company.

Sudden layoffs have become an inevitable part of corporate life today, often leaving employees in emotional distress in the short term and a financial mess in the long term. However, employees can mitigate the negative consequences of sudden layoffs by taking some immediate steps.

The following is a list of six steps that employees should take immediately after losing their jobs due to layoffs.

Step 1: Forward all layoff communications to your personal email

Layoff announcements generally come as a surprise via official email IDs of employees, and they are accompanied by the terms and conditions of the severance. The first thing you should do after receiving such emails is to immediately forward them to your personal email ID. If forwarding is not allowed, then either take screenshots, photos, or printouts, but ensure to have the content of the layoffs on record.

Employers generally block access to official email IDs and devices soon after the layoff announcement. Having all layoff communications on personal email will ensure you get the full compensation as announced initially for severance. In case the employer backtracks from the initial layoff promise, you will have proof to contest.

Step 2. Do not confirm the severance agreement immediately

After sending the layoff announcement, companies often arrange one-to-one meetings with affected employees to further explain the reasons behind the decision and to make the employees sign or agree to the severance agreements. These discussions are generally very emotional. But you should keep your emotions in check and do not immediately agree to any of the terms of the layoff.

Before confirming, read everything carefully, analyse what you are being offered, and compare it with the official HR policy on layoffs and your employment terms and conditions.

Keeping calm and doing some research on the terms as suggested above may give you some points to make the employer revise the layoff terms for you. It may also protect you in case the layoff is not lawful.

3. Cover your financial bases - if struggling, sell off some assets

After the sudden layoff, it may not be possible to immediately find the next job. While companies generally provide a severance package that may help you sustain for 2-3 months, you should ensure your financial bases are covered for at least 6-12 months.

If you have been financially wise during employment, then your emergency funds will come in handy in this period. If not, you must figure out ways to smoothly repay all your running EMIs during unemployment or close the loan through pre-payment. If the need be, you may sell some assets or withdraw from the Employees Provident Fund (EPF). If you are not sure what to do, then take the help of a financial advisor to find the best ways to deal with your situation.

Covering your financial bases for 6-12 months will give you sufficient time to find the next best job or explore new opportunities that you may have ignored earlier out of fear of a financial loss.

4. Don't rush into the job next door

People often rush to the next job opportunity after a layoff and even take pay cuts. While this is okay if one is in a bad financial situation, it would be much better to take time and rejoin the workforce on your own terms and conditions.

Employers often take advantage of people who have faced layoffs by offering them jobs with big pay cuts and harsh terms and conditions. Therefore, one should not rush into the next job. Instead, taking some time to explore all possible options may be more helpful in the long term.

5. Reconnect with or rebuild your network

Daily rush for jobs often disconnects people from the network they have acquired over the years. Layoff could be a good time to reconnect with all your past network - friends, peers, bosses, or anyone who you think can help you in this tough time. If you have never cared about networking, then you should use this time to rebuild your network from scratch. Reach out to people with new ideas, or start something on your own.

The importance of reconnecting with or rebuilding your network need not be stressed much. Networking is a long-term investment in yourself, which helps not just in your career but in all other aspects of life.

6. Invest in health

Days after layoffs can be quite stressful, which may take a toll on your health if you lose control. Better, you should take control and turn a layoff into an opportunity by investing time in your health.

Investing time in your health will help in the long run. After all, you can work or enjoy the fruits of your work-life only if you are in good health.