You just got laid off. Maybe HR called it a “restructuring,” maybe it came with two weeks’ notice, maybe it didn’t. Either way, the next 30 days matter more than almost any other stretch in your working life, and most advice out there only covers half the problem: it’s either a finance checklist or a job-search checklist, never both at once.
The timing isn’t your imagination, either. Challenger, Gray & Christmas tracked 443,604 job cut announcements across the U.S. in the first half of 2026, with tech taking the hardest hit at 139,156 cuts. AI got named as the direct cause behind 87,714 of this year’s cuts, about 22% of the total, which is already more than all of 2025’s AI-related cuts (54,836) combined, in half the time. If you’re reading this because it just happened to you, you’re not alone, and you’re not overreacting to how fast this is moving.
This guide treats money and recolocation as one problem, because that’s what they actually are. Here’s what to do in the first 72 hours, what to lock down in week one, and what to work through over the following three weeks.
The First 72 Hours: Protect Your Paperwork and Your Rights
The instinct to sign whatever’s put in front of you and move on is normal. Resist it for a couple of days.
- Don’t sign your severance agreement on the spot. A signature under pressure is still a signature, and severance agreements almost always ask you to waive legal claims in exchange for the money.
- If you’re 40 or older, you have a legal review window. Under the Older Workers Benefit Protection Act, employers generally must give you at least 21 days to consider an individual severance offer (45 days if it’s part of a larger group layoff), plus 7 days to revoke your signature after you sign. Use that time.
- Ask for everything in writing. Your last day of employment, the exact date of your final paycheck, how unused PTO gets paid out, when benefits actually end, and what the severance offer covers line by line. Verbal promises from a manager don’t hold up later.
- File for unemployment right away, even if you’re still deciding on other things. In most states, benefits are calculated from your filing date forward, not your last day worked, so waiting a week can cost you a week of money you’re otherwise owed. If you haven’t started that process yet, here’s a walkthrough of how to file for unemployment benefits step by step.
What to Actually Review in Your Severance Package
Once you’ve had a day or two to breathe, read the actual document, not just the total dollar figure.
Look for a non-compete or non-solicitation clause that could limit where you work next, a non-disparagement clause, and a release of claims that waives your right to sue over the termination. None of these are automatically unfair, but you should know they’re there before you sign.
Then get specific answers from HR: is the severance a lump sum or spread out as salary continuation? That distinction can affect when your state considers you eligible for unemployment, since some states treat continued salary as still being “employed” for benefit purposes. Ask whether COBRA is subsidized for any period, and confirm the exact payout for unused vacation or PTO.
If the package is unusually complex, or something about it just feels off, a short paid consultation with an employment attorney is a reasonable step. Most of the time the answer comes back “this is standard,” and that peace of mind is worth the cost on its own.
Week One: COBRA vs. Marketplace, Which Health Coverage Actually Fits
You have a real decision to make here, and it comes with a deadline. COBRA lets you keep your exact employer plan, but you now pay the full premium yourself, often 100% of the cost plus a small administration fee, which can be a shock compared to what came out of your paycheck before. A Marketplace plan may cost less overall, especially if your income for the rest of the year qualifies you for a subsidy, but the plan itself and its network of doctors will be different from what you had.
Both options give you a 60-day window: COBRA election runs 60 days from your notice or loss of coverage (whichever is later), and losing job-based coverage also triggers a Marketplace Special Enrollment Period that runs about 60 days from that same loss-of-coverage date. You don’t have to decide on day one, but don’t let the window close while you’re still thinking it over.
| Factor | COBRA | Marketplace plan |
|---|---|---|
| Coverage continuity | Same plan, same doctors, no gap | New plan; network may differ |
| Monthly cost | Full premium, usually no employer share | May qualify for income-based subsidies |
| Enrollment window | 60 days from notice or coverage loss | 60-day Special Enrollment Period |
| Best fit for | Ongoing treatment or specialists you can’t switch away from | Tighter budgets or a job search expected to run past a few months |
Costs and subsidy eligibility vary by household income, state, and plan year, so run your actual numbers on Healthcare.gov before deciding either way.
Week One: Build a Real Survival Budget
This is the number that should drive most of your other decisions, and it’s simpler math than it looks. Add up your current savings, the after-tax severance you expect to receive, and the total unemployment benefits you’re likely to collect over the coming months. Divide that total by your essential monthly expenses: rent or mortgage, utilities, insurance premiums, minimum debt payments, and groceries. What’s left is your runway in months, not a guess.
Knowing that number changes how urgent everything else feels. Three months of runway means one set of decisions about how picky you can be with job offers; three weeks means another. If you haven’t tracked spending closely before, this is a good moment to start, and a decent app makes the math far less painful than a spreadsheet you’ll abandon by week two. This roundup of budgeting apps built for the post-Mint era is a reasonable place to start if you need one.
Days 8 to 30: Decide What to Do With Your 401(k)
You’ll likely have a few options, and they’re not all equal. Leaving the money in your old employer’s plan is often the simplest choice if the plan allows it and your balance clears the minimum threshold. Rolling it into an IRA or a new employer’s plan keeps the money growing tax-deferred and gives you more control over investment choices. Cashing it out is usually the worst option: you’ll typically owe ordinary income tax on the full amount, plus a 10% early withdrawal penalty if you’re under 59 and a half, and you permanently lose the years of compounding growth that balance would have earned.
Exact tax treatment and penalties depend on your age, your plan’s rules, and your state, so this isn’t a one-size-fits-all call. But as a general rule, treating your 401(k) as an emergency fund should be close to a last resort, not a first move.
Days 8 to 30: Get Your Resume Past the AI Filters
Most mid-size and large employers now run resumes through an applicant tracking system before a human ever sees them, and a growing share of that screening is AI-assisted. A resume that reads perfectly well to a person can still get filtered out if it’s formatted in a way the parser can’t read cleanly.
Keep the format simple: standard section headers, no text boxes or tables inside the resume itself, and job titles that match how the role is commonly listed rather than an internal title only your last company used. Mirror language from the actual job posting where it’s honest to do so, since many systems are matching keywords as a first filter. For a deeper walkthrough of what these systems actually look for and how to format around them, this guide on beating AI resume screening covers it step by step.
Days 8 to 30: Watch for Scams That Target Laid-Off Workers
Scammers know exactly who’s job hunting under pressure, and layoffs create a steady stream of targets. Unsolicited recruiter texts for jobs you never applied to, “task” jobs that ask you to deposit your own money to unlock pay, and ghost listings that were never going to be filled all spike whenever layoff numbers do. A real employer won’t cold-text you a pay rate before an interview, and no legitimate job ever requires you to pay to get hired. This breakdown of the job scams making the rounds in 2026 walks through the specific red flags and what to do if you’ve already responded to one.
The 30-Day Checklist at a Glance
- Hours 1 to 72: Don’t sign anything yet, use your review window if you’re 40+, get every detail in writing, and file for unemployment immediately.
- Week 1: Compare COBRA against a Marketplace plan before your 60-day window closes, and build your real survival budget.
- Days 8 to 30: Make a deliberate call on your 401(k), rebuild your resume for AI screening, and keep your guard up against job scams while you search.
This article is for general informational purposes and isn’t financial, legal, or career advice. Severance terms, unemployment eligibility, COBRA and Marketplace costs, and 401(k) rules all vary by employer, state, and individual circumstances, so confirm specifics with your HR department, your state’s unemployment office, Healthcare.gov, or a licensed professional before making decisions.
Frequently Asked Questions
What should I do in the first 24 to 72 hours after a layoff?
Avoid signing your severance agreement immediately, get your last day, final paycheck date, and benefits end date in writing, and file for unemployment right away since most states count benefits from your filing date rather than your last day worked.
How long do I have to review a severance package before signing?
If you’re 40 or older, federal law generally requires at least 21 days to consider an individual offer (45 days for a group layoff), plus 7 days to revoke your signature after signing. Workers under 40 don’t have this specific federal window, so ask HR directly how long you have and get that answer in writing.
When should I file for unemployment benefits?
As soon as possible after your layoff. Most states calculate benefits starting from the date you file, not your last day of work, so a delay of even a few days can mean losing that money permanently.
Is COBRA or a Marketplace plan better after a layoff?
It depends on your situation. COBRA keeps your exact plan and doctors but usually costs the full premium out of pocket. A Marketplace plan may be cheaper if you qualify for a subsidy, though the network could differ from what you had. Both come with a roughly 60-day enrollment window, so compare actual costs on Healthcare.gov before the window closes.
Should I cash out my 401(k) after a layoff?
Generally, no, unless you’ve genuinely run out of other options. Cashing out usually triggers ordinary income tax plus a 10% early withdrawal penalty if you’re under 59 and a half, and you lose future growth on that balance permanently. Rolling it into an IRA or a new employer’s plan keeps it working for you.
How can I avoid job scams while searching after a layoff?
Be wary of unsolicited recruiter texts for jobs you never applied to, any “job” that asks you to deposit your own money to access pay or tasks, and listings that pressure you to decide immediately. Legitimate employers don’t ask you to pay to get hired.
