A layoff is a significant career disruption, but it can also serve as a catalyst for personal and professional growth.
We’ve already written extensively about what layoffs mean for your career as well as how to detect layoffs ahead of time and how to protect yourself from being laid off. You might want to explore some of these articles.
In this article, we’re going to assume that you have been laid off and that you’ve decided to get another job. And we will focus on how to get a job in the context of being laid off.
Layoffs In The Context of a Job Hunt
A layoff is an employer-initiated termination of employment, typically due to economic conditions, organizational restructuring, or cost-cutting measures.
Itâs not the same as a firing, which is usually performance-related. This makes being laid off an acceptable cover story to why you are unemployed.
But there are details to considerâŠ
Small Layoff
A small layoff involves a limited number of employees, often within a specific department or function. This type of layoff may occur due to downsizing, resource reallocation, or strategic pivots.
For job seekers, a small layoff can mean less stigma and more niche opportunities. Generally speaking, experiencing a small layoff will not have a persistent, negative domino effect on your job search.
Mass Layoff
A mass layoff involves a significant number of employees (think tens of thousands or more) being let go simultaneously, often due to major economic downturns or large-scale restructuring.
Mass layoffs create increased competition for available positions and can be perceived as a sign of industry instability. They have a detrimental impact, especially on the local employment landscape – making it harder for everyone around the layoff area to find jobs. (Berge and Schmillen, Effects of mass layoffs on local employment).
Keep in mind, however, the impact isnât just limited to the local scene. In the modern interconnected economy, mass layoffs also disrupt the industry ecosystem, causing a ripple effect that can last for years.
In today’s globalized world, layoffs at a sizeable company, affect not just the immediate employees but the entire industry. For instance, the tech layoffs of 2023 and 2024 (LayoffsTracker), have made it considerably harder for tech workers to find new positions.
Ultimately, the increased competition and reduced hiring have a significant negative effect on job seekers. Meaning, if you are experiencing a mass layoff, you should broaden your networking efforts, think about moving, and potentially consider a pivot to more stable or emerging sectors.
Before We Move On About Seeking JobsâŠ
Here’s something important that we should cover before getting to specifics:
Layoffs, while challenging, can contribute to the psychological development of professionals. They shatter the veneer of corporate civility, helping you see companies for what they truly are. This realization often leads laid-off employees to prioritize their own interests more rigorously.
Psychological Benefits
Research indicates that experiencing a layoff makes employees more self-reliant and proactive. A study from the University of Wisconsin found that individuals are 56% percent more likely to quit any job following their first layoff and 65% percent more likely to quit the job that immediately follows a layoff (Layoffs Make Employees More Likely to Quit Future Jobs). Additionally, layoffs increase the likelihood of seeking alternative employment as well as the tendency to accept unsolicited job offers.
You could say – in summary – that layoffs make professionals more independent, less loyal, and more self-interested. These are all good and appropriate reactions to the modern corporate landscape.
In other words, layoffs can be a wake up call. And the heightened awareness they generate, leading to a willingness to move on can ultimately lead to better career opportunities and personal growth.
Keep this in mind, as we discuss your next stepsâŠ
Rules to Follow When You Are Laid Off
We’re not here to say “we told you so” or remind you that you should have been networking and cultivating job offers while employed. (Good job, if you did so đ)
Nor will we mention that we teach you how to automate generating job opportunities so you can reap the benefits of employers seeking you, without you constantly applying to jobs… (If you are one of our automated students, why are you reading this? Tell, us, we’re curious… đ§)
But we would not be doing our job, if we did not remind you of these facts, so that next time if a situation like this were to arise, you wouldn’t need to read this type of article again, or be put in a position of disadvantage.
Anyway⊠Instead of thinking of the past, let’s focus on the concrete actions you need to take to get back on track. Time is ticking, and you have at most six months before your career is at serious risk.
Rule 1: Extract Every Penny from Employment Insurance
Youâve paid into Employment Insurance, so.. Get the benefits you’re entitled to. This financial support can provide a crucial buffer as you transition to your next job.
Rule 2: Avoid Long-Term Unemployment
Studies show employers are extremely prejudiced against candidates who have been unemployed for six months or longer. Many will ignore such candidates altogether, considering them unemployable.
A thorough study found âa sharp drop off in the probability of receiving an interview request after six months of unemployment.â At ten months, the probability hit almost zero. Moreover, they found that ârecently unemployed applicants with no relevant industry experience are more likely to be invited for an interview than those with experience who have been out of work for more than six monthsâ(source).
In other words: employers consider outsiders – something they generally avoid – over hiring the long term unemployed. You don’t want to end up there.
(Important Note: If you ARE long-term unemployed, you need a compelling cover story and a modified application strategy. While a layoff is a sufficient explanation to find a job within a month or two, for the long-term unemployed, a more detailed story is essential. See Launch Your Career for more details.)
Rule 3: Integrate Your Layoff into Your Career Narrative
Put a positive spin on your layoff. Frame it as a growth opportunity, a chance to re-evaluate your career path, and a period where you gained new skills or insights.
Remember: the story you tell yourself, becomes the story you tell employers in your applications and your interviews. In this sense, having a positive spin story is less of a cope and more a strategic action to get yourself into the right mindset. That mindset will allow you to tell a compelling story to those that are going to hire you.
Rule 4: Frame Lower Positions as Temporary
In the corporate world, you are as good as your last title.
Avoid being underemployed or taking a lower position that doesn’t align with your career trajectory. If you must take a lower position, ensure it is on a contract basis and can be framed as a temporary role that you took advantage of while searching for a more suitable position. Remember, once you break an upward career trajectory, it is very difficult to reverse the trend of stagnation.
If you DO take a lower permanent position, it must still appear temporary inside your career narrative, and be presented as a strategic choice. For example, imagine you were a Senior Marketing Manager and had to take a role as a Marketing Coordinator due to a layoff. In such a case, you might want to tell the following story:
“After the layoffs at ABC company, I took a Marketing Coordinator role at XYZ Corp. It gave me hands-on experience with new digital marketing tools and techniques, which I was very curious about. This was a nice addition to my skill set. I got a chance to dive into the operational side of marketing campaigns, which gave me a well-rounded view of the marketing process. This strategic move provided me with valuable insights, making sure that none of the aspects of our work remained opaque. I’m now excited to use these insights in a senior management role to drive innovative marketing strategies.”
Remember: the goal is to help maintain the perception of an upward career trajectory and keep your professional brand strong.
Speaking of your personal brand..
Update Your Professional Brand
After experiencing the layoff, you need to pay extra attention to developing your personal brand.
While the layoff is a temporary setback to your income stream, handled incorrectly, it can be a permanent setback against your brand. Take the following actions:
Revise Your Resume and LinkedIn Profile
Your resume and LinkedIn profile are your primary marketing tools. Ensure they are up-to-date, highlighting your most relevant achievements and skills.
Yes, youâll still need to customize your resume for each application, focusing on the competencies and experiences that match the job description. But this also means you need to have a root resume that tells the story you want told.
Showcase Your Skills
Highlight the Five Core Skills and Seven High-Value Disciplines on your resume and LinkedIn profile. Employers seek candidates proficient in these irreplaceable, and automation proof skills such as critical thinking, communication and creativity.
Leverage Your Network
Surprisingly, some people are nervous or even ashamed to reach out to others in their network after a layoff. Some professionals even recoil into isolation, and go down the horribly ineffective âfind a job through job postingsâ route – so that they can âproveâ themselves again.
This is absurd; since many people in your network – if you happen to be following our networking related teachings – are your âbusiness friendsâ who are genuinely excited to help you and be of assistance.
Reconnect with Your Contacts
Reach out to former colleagues, mentors, and industry connections. Inform them of your situation and career objectives. No, don’t directly ask for a job – if they have an opportunity, they will tell you. But yes, talk to them about your aspirations, and especially about work that excites you.
This type of positive networking can uncover hidden job opportunities and provide valuable referrals.
Attend Industry Events and Webinars
Engage in professional events and webinars to expand your network and stay updated on industry trends. These platforms offer opportunities to meet potential employers and learn about job openings.
Apply, But Apply Strategically
Just because you have a good network, or because you’re waiting on that âkey referralâ, does not mean that you should not be applying to jobs.
In fact, there’s no question about it: if you are unemployed, on top of all the actions we recommend, you also need to apply to jobs. You have no excuses.
Even the horrible application to interview ratio, which can reach 250 to 1, is not an excuse against applying to jobs when you are unemployed, especially after a layoff!
Ultimately: if you’re not receiving a regular paycheck, you need to be applying to jobs on top of everything else you’re doing. And this does not change, if you receive a five-figure salary, a six-figure salary, or a seven-figure salary. (At 8 figures, things change, yes).
Target High-Value Companies
During or following layoffs, especially mass layoffs, focus your job search on companies known for their growth and stability. Research organizations that align with your values and career goals. But also look at their history of layoffs, the stability of their stock price, and their liquid assets. At the very least, read their last two quarterly reports.
You should also use platforms like Glassdoor and LinkedIn to gather insights into company culture and employee satisfaction. But remember, layoffs and stability are not about company culture or what the employees think. Layoffs are about the financials.
(Pro Tip: The reason you want a stable company after a layoff is because you’re trying to avoid a second layoff. If you happen to get laid off twice, employers will get the wrong idea, and they might think that it’s about you rather than your luck.)
Use Job Boards and Recruitment Agencies
Leverage job boards such as Indeed, LinkedIn, and specialized industry sites. Consider partnering with recruitment agencies that can get you exclusive opportunities and connect you directly with hiring managers. (Note: You should watch our video about recruiters in Launch Your Career, as there are a lot of nuances to picking the right recruiter to work with.)
Upskill and Reskill
Since you’re going to have some free time, you need to dedicate it to actions that give you greater optionality.
Enroll in Relevant Courses
Invest in professional development by taking courses that enhance your qualifications. Platforms like Coursera, Udemy, and Career Insiders offer a range of programs that can boost your expertise and marketability.
Obtain Certifications
Certifications in your field can make you a more attractive candidate. (Yes, even if youâre an executive, there are courses you can take – and simultaneously get an Ivy League name drop on your resume).
Identify certifications that are highly regarded in your industry and complete them to demonstrate your commitment to continuous learning.
Of course, we believe developing career skills is considerably more important than getting certifications. While certifications can help you impress some gatekeepers, techniques like the warm application process can connect you directly with hiring managers.
Prepare for Interviews
When you are laid off, you need to be ready for an interview at a moment’s notice…
Develop Your Cover Story
When preparing for interviews, it’s crucial to develop a compelling cover story that explains your layoff positively and aligns with your career goals.
A well-crafted cover story helps you control the narrative and demonstrates resilience and strategic thinking (Hint: you’re not a sad victim, you are in control).
Highlight how the layoff was an opportunity for growth and self-improvement. For instance, you might explain that the layoff allowed you to gain new skills, take on freelance projects, or pursue professional development courses. (Note: relate it to something professional. No one cares that you now had time to work on your knitting hobby or could take that long desired vacation with your family – those are for happy hour talks, not interviews.)
By presenting your layoff as a stepping stone rather than a setback, you can reassure employers of your adaptability and proactive approach to career challenges. It is the story they want to hear.
Practice Your Elevator Pitch
Craft a compelling elevator pitch that succinctly communicates your background, skills, and career goals. This way, when you start interactions with people, your elevator pitch can frame the discussion, as opposed to the story about how the company you just worked for is in trouble or how you recently got laid off. Practice delivering it confidently to make a strong impression during networking interactions.
Also, keep in mind that for interviews, an elevator pitch is insufficient. You need to learn to develop your positioning statement and integrate it into your career narrative.
Prepare for Behavioral Questions
Employers often use behavioral interview questions to assess how youâve handled situations in the past. Use the STAR method (Situation, Task, Action, Result) to structure your responses and highlight your problem-solving and leadership skills.
(Pro Tip: For giving the ideal answers to interview questions, go through our interview question answering framework as explained in Launch Your Career)
Consider Alternative Career Paths
Keep in mind, a layoff is a wake-up callâŠ
Explore Freelancing and Consulting
If traditional employment opportunities are scarce, consider freelancing or consulting. This is not necessarily easier, but it can provide income while allowing you to expand your network and develop new skills.
Pivot to Emerging Industries
Identify industries that are growing despite economic downturns, such as technology, healthcare, and renewable energy. Pivoting to an emerging industry can open up new opportunities and provide job security.
Stay Positive and Persistent – This is a New Beginning
Adopting a growth mindset is crucial during a job search, especially after a layoff.
View setbacks as learning experiences and remain adaptable. By assessing your situation, updating your professional brand, leveraging your network, and continuously improving your skills, you can not only find a new job but secure a position that aligns with your career aspirations and helps you get ahead.
Remember: every setback is an opportunity. Sort ofâŠ
As the Chinese say:
ć±æș (wÄijÄ«): âcrisisâ also means âincipient moment; crucial point (when something begins or changes).â
But no. It does not also mean âopportunityâ in and of itself. Thatâs a rumor. Opportunity is a different word.
Crisis does not equal opportunity on it’s own. YOU turn that crisis into opportunity. Thatâs your jobâŠ
Itâs time to act.
PS – We recommend you leverage every tool available to you in turning this crisis into your next opportunity.