Layoff Preparation Guide: What to Do to Protect Yourself…Just Incase
So, your company is at risk of layoffs. In an era of economic uncertainty and rapid organizational shifts, job security is never guaranteed. Even if layoffs aren’t imminent, adopting a proactive approach can safeguard your career, financial stability, and peace of mind. This guide offers a meticulous strategy to prepare for potential layoffs, empowering you to take control of your situation before any pink slips are handed out.
Preparation is not just about survival; it’s about setting yourself up for future success, whether or not layoffs occur.
1. Understand Your Company’s Position
Before diving into personal strategies, take stock of your company’s health and trajectory.
Monitor Financial Indicators: Review public financial reports, earnings calls, and internal updates. Signs like budget freezes, missed targets, or restructuring plans could signal trouble.
Pay Attention to Communication: Frequent references to “cost-cutting” or “restructuring” in leadership messaging may indicate layoffs are on the horizon.
Talk to Trusted Colleagues: Carefully exchange insights with coworkers to gauge the general mood and rumors—but avoid openly speculating or contributing to panic.
Note: Monitor your company’s health from external data as well as internal tools such as Salesforce reporting and your performance management tool to assess organizational performance against top company financial goals (think sales, revops, and finance teams). Listen carefully to language used department and all-hands meetings that signal cost saving measures or restructuring and sentiment with regards to recent shareholder meetings.
Even if your company doesn’t outwardly say layoffs are eminent, there will be early signs it’s a strong possibility in the future. The good news is these signs can start to appear months out so if you pay attention, you have a better chance to prepare yourself.
2. Secure and Document Your Work Contributions
If layoffs happen, you may be locked out of your work systems immediately. Protect yourself by meticulously documenting your contributions and achievements.
Create a Personal Record:
Export copies of your performance reviews, feedback emails, project documentation, and key deliverables to a personal, secure device.
Save metrics, reports, or tangible results that quantify your impact (e.g., “Increased sales by 25%” or “Reduced onboarding time by 40%”).
Keep Track of Your Role:
Maintain a running document of your responsibilities, key projects, and cross-functional collaborations.
Update this weekly or biweekly to ensure accuracy and completeness.
Document Soft Skills and Leadership Moments:
Highlight instances where you’ve led initiatives, mentored colleagues, or contributed to company culture. These “soft” contributions matter in interviews.
Note: Many companies now use a performance management tool to drive organizational success. These tools make it easy for you to track your goals, performance reviews (conversations), feedback, and recognition. If you feel like layoffs are are strong possibility, make sure to update your progress biweekly and to be proactive in seeking recognition from your colleagues. This helps to document the great work you are doing.
3. Leverage Current Benefits and Perks
Take full advantage of your employee benefits while they’re still accessible.
Healthcare: Schedule any overdue medical, dental, or vision appointments now, as coverage often ends shortly after layoffs.
Education and Training: If your company offers tuition reimbursement or online learning subscriptions, enroll in relevant courses to build transferable skills.
Retirement Contributions: Confirm that you’re maximizing any company match for your 401(k) or retirement plan while it’s still available.
Mental Health Resources: Utilize employee assistance programs (EAPs) for counseling, stress management, or financial planning support.
Note: Unapologetically use your your benefits. Don’t sleep on your education and training benefits. Get current certifications up to date and/or use these perks to uplevel your skills so you are more prepared to secure a better future role. Regarding mental health benefits, it’s also worth maxing out these benefits.
Looming layoffs can be an incredibly stressful time and speaking with a therapist or counselor can do wonders for your health at this time. If you’re under significant work stress, it’s also good to have a record of this with a licensed provider.
4. Treat Your Current Job as an Exit Strategy
Layoffs can be an opportunity to pivot. Use your remaining time to bolster your resume and professional network.
Seek High-Impact Projects: Volunteer for initiatives that align with your career goals or demonstrate leadership skills.
Request Feedback: Regularly ask for feedback from your manager to improve your performance and capture written documentation of your strengths.
UpSkill Strategically: Take on tasks or training that enhance in-demand skills, such as data analysis, project management, or communication tools like Slack or Salesforce.
Build Relationships: Strengthen connections with colleagues and leaders who can later serve as references or provide job leads.
Note: Use this time to set even more audacious goals and/or interesting projects that can better develop your skills for your next role. Think of this as further developing in your current career path or using this opportunity to work with other department teams that you may also be interested in if a future career change is a possibility.
This kind of situation is often a gift in disguise; by setting new career goals for yourself, you can use this time well to bridge the gaps you need to springboard into a dream role.
5. Update Your Professional Materials
Don’t wait until layoffs are announced to update your resume and LinkedIn profile.
Resume:
Highlight recent achievements and tailor your resume to roles you’re targeting.
Use quantifiable metrics to demonstrate impact.
LinkedIn Profile:
Optimize your headline and summary with industry-relevant keywords.
Regularly engage by sharing articles, commenting on posts, and joining professional groups.
Portfolio:
Create or update a portfolio showcasing your best work, particularly if you’re in a creative or technical field.
Note: Layoffs happen quickly and quietly. Once the dust settles, it can be overwhelming to think through what to do next. By keeping your resume and LinkedIn profile updated accordingly, you’ll save yourself the trouble of having to do so when you might not be in the right frame of mind.
By the time your notification call is over, you’ll likely be locked out of the systems so get into the habit of updating your portfolio weekly. Depending on your role, this may be collateral you’ve created, KPIs, or sale performance numbers.
Every company has their own policies on data and collateral so make sure you document your work in a way that is within the boundaries of your agreements.
6. Strengthen Your Financial Position
Financial preparedness reduces stress and gives you options if layoffs occur.
Build an Emergency Fund: Aim to save 3-6 months of living expenses if possible. Redirect discretionary spending into savings.
Review Your Budget: Categorize expenses into “needs” and “wants.” Cut unnecessary costs now.
Explore Side Income: Consider freelance work or gig economy options to supplement your income.
Understand Severance and Unemployment: Research your company’s severance policies and the unemployment benefits available in your state.
Note: This is may be the most important advice on this list. Depending on your industry and role, the time to secure a new position could be several months. Don’t wait until you get the meeting invite from HR to think about your financial safety net; have an emergency plan in place.
Knowing your plan and budget will save a significant amount of stress if you find yourself in the unfortunate position of layoffs. Exploring side hustle income prior to layoffs is also a strong strategy. Perhaps its a skill aligned with your primary career or maybe it’s a secondary interest that you’re skilled in. Having additional streams of income help tremendously.
7. Prepare for the Worst While Hoping for the Best
Even if layoffs don’t happen, being proactive ensures you’re always in a strong position.
Network Actively:
Attend industry events, participate in webinars, and connect with peers.
Send personalized messages to maintain relationships with former colleagues or clients.
Set Up Job Alerts: Use platforms like LinkedIn, Glassdoor, and Indeed to monitor job opportunities in your field.
Understand Your Rights: If layoffs occur, know what you’re entitled to, including severance, unused PTO, and health insurance extensions through COBRA.
Develop a Routine: Keep a consistent schedule that includes professional development, networking, and wellness activities. This builds resilience and ensures productivity.
Note: Interview processes as of recent are frequently several rounds long. Even if you’re not planning to leave your current situation just yet, getting a head start on interviewing is a huge advantage. This helps you to see what is out there, polish up your interview skills, and, if you are laid off, being somewhere along the interview process elsewhere can be a hug confidence boost (and relief).
Being as informed as possible, especially in uncertain times can help calm anxieties. Developing your preparation routine can help you become more comfortable with the uncomfortable.
8. Mindset Matters: Focus on What You Can Control
Layoff rumors can trigger anxiety, but staying grounded and focused is critical.
Practice Stress Management: Incorporate mindfulness, exercise, or journaling to stay calm.
Avoid Workplace Drama: Stay professional and avoid engaging in speculation or negativity.
Reframe the Situation: View this preparation as an opportunity to align your career with your values and goals.
Note: As difficult as it can be, try to focus on what you can control rather than what you cannot. Change is hard. Uncertainty is hard. The glimmer here is that by having a plan and preparing what’s in your sphere of control, you’ll feel better and will put yourself into a better position, even in the work case scenario.
9. Document Regularly, Strategically, and Safely
Regularly update and back up key information to ensure you’re prepared for any outcome.
Cadence: Set aside 30 minutes weekly to update your work contributions, document projects, and refresh your resume.
Where to Store: Use secure personal devices or cloud storage outside your company’s systems.
What to Document:
Metrics and deliverables.
Emails or notes highlighting positive feedback.
Lists of colleagues and their contact information for future networking.
Note: Again, make sure you are being safe and honoring your data agreements and being mindful of proprietary information. Find safe ways to make sure you have your contributions and successes recorded.
10. Always Stay Ready
Workplace stability is increasingly rare. By staying prepared, you reduce the impact of unexpected events and position yourself for long-term success.
Make Proactive Career Planning a Habit: Regularly review your goals, skills, and financial health to ensure you’re always prepared for transitions.
Celebrate Your Wins: Acknowledge your preparedness as a step toward greater empowerment and career control.
Proactive preparation isn’t just about protecting yourself during layoffs—it’s about taking charge of your career in an ever-changing world. With these strategies, you’ll be ready for whatever comes next, armed with confidence and clarity.
Note: For many over-achievers, hypervigiliance comes naturally. If there is ever a time to put this coping mechanism into action, it’s during this time. Use your spidey sense to protect yourself and plan your layoff exit strategy if needed.
Final Thoughts
Proactive preparation isn’t just about protecting yourself during layoffs—it’s about taking charge of your career in an ever-changing world. With these strategies, you’ll be ready for whatever comes next, armed with confidence and clarity.
Article References
The sources cited in the article:
Forbes. "10 Strategies to Prepare for a Possible Layoff." Forbes - 10 Strategies to Prepare for a Possible Layoff
Forbes. “How to Prepare for a Potential Layoff.” Forbes - How to Prepare for a Potential Layoff
Forbes. “This is the Time of Year for Job Cuts: What to Know, How to Prepare.” Forbes - Job Cuts: What to Know, How to Prepare
Harvard Business Review (HBR). "What You Should Know About Layoffs: Before, During, After." HBR - What to Know About Layoffs
The NYTimes. “How to Prepare for a Possible Layoff.” NYT - How to Prepare for a Possible Layoff
