The Layoff Risk Survival Plan

"If you're worried about layoffs, you're not paranoid—you're paying attention. Here's how to prepare while you still can."

The Reality of Layoff Risk

Layoffs aren't personal, but they're not random either. Companies make decisions based on cost, strategy, and politics. If you can see the patterns, you can prepare.

And preparation matters. The people who land well after layoffs aren't luckier—they're more prepared.

Early Warning Signs

Company-Level Signals

These suggest the company might be cutting staff:

• Hiring freeze — Often the first step before layoffs
• Budget cuts — Especially mid-year or unexpected
• Revenue misses — Especially multiple quarters in a row
• Leadership changes — New CEO often means restructuring
• Strategic pivots — Some functions become less relevant
• Reduced perks — Cutting small things before cutting people
• Delayed promotions or raises — Preserving cash
• M&A activity — Mergers almost always mean redundancies
• Stock price decline — Pressure to cut costs

Team-Level Signals

These suggest your specific team might be at risk:

• Your function isn't central to the new strategy
• Your team is duplicated elsewhere in the org
• Your projects keep getting deprioritized
• Your headcount is growing slower than other teams
• Key leaders are leaving your function
• Your manager seems less engaged or informed

Personal Signals

These suggest you personally might be at risk:

• Recent negative performance feedback
• Exclusion from key meetings or decisions
• Your work being reassigned to others
• Less visibility to senior leadership
• Peers getting promoted while you plateau
• Your manager avoiding career conversations

The Preparation Playbook

If you see warning signs, start preparing. You can do this without quitting, without being disloyal, and without anyone knowing.

1. Secure Your Documents

Before you lose access, collect what you're entitled to:

• Performance reviews
• Any metrics or results you influenced
• Key emails documenting your accomplishments
• Contact information for colleagues (personal, not work emails)
• Any work samples you can legally keep (check your agreements)

Don't take: Proprietary information, trade secrets, customer data, or anything you signed an NDA about. But documenting your accomplishments with numbers is fair game.

2. Build Your Financial Buffer

• How many months of expenses can you cover?
• What can you cut if you need to extend it?
• Do you have access to credit if needed?

Target: 3-6 months of essential expenses in accessible savings.

• Cut discretionary spending now
• Pause contributions to savings (except 401k match)
• Consider a side income if time allows
• Don't make large purchases

3. Update Your Materials

Before you're stressed and panicking, get your job search materials ready:

• Update with current role and accomplishments
• Quantify results where possible
• Have it reviewed by someone you trust
• Save it in multiple formats

• Professional headshot
• Compelling headline (not "Seeking opportunities")
• Strong summary section
• Detailed accomplishments for each role
• Skills and endorsements

• A clear answer to "What do you do?"
• A clear answer to "What are you looking for?"
• Stories for common interview questions

4. Activate Your Network (Quietly)

You don't have to announce you're worried about layoffs. But you should be visible.

• Reach out to former colleagues and managers
• Accept coffee requests and informational calls
• Attend industry events
• Engage on LinkedIn (comment, share, post)
• Let trusted people know you're "always open to interesting conversations"

• Announce you're job hunting
• Badmouth your company
• Apply to competitors visibly
• Check out of your current role

5. Know Your Severance Situation

Before layoffs happen, understand:

• What's the typical severance at your company?
• Is there a documented policy?
• Do you have any special agreements (offer letter, employment contract)?
• What's your unvested equity situation?
• How does COBRA work for your health insurance?

This information helps you negotiate if the time comes.

6. Have a Plan B

Think through the scenarios:

• How would you handle the first week?
• What would your job search strategy be?
• Who would you call first?
• What's your financial runway?

• Would you stay or proactively leave?
• What would trigger you to accelerate job search?

Having a plan reduces panic and improves decisions.

If Layoffs Are Announced (But Haven't Hit You Yet)

Stay Professional

• Keep doing good work
• Don't check out mentally
• Support teammates who are affected
• Avoid gossip and speculation

Assess Your Situation

• Are more layoffs coming?
• Is your team in a stable position now?
• Did the cuts address the problem, or was this just wave one?
• What's leadership saying about the future?

Accelerate Your Preparation

• Move from passive to active networking
• Increase job search activity (carefully)
• Consider whether it's time to leave proactively

Consider Whether to Stay

• Increased workload for the same pay
• Demoralized team and culture
• Company may not recover
• Your role may be less interesting

It's okay to decide that surviving the layoff means it's time to go.

If You're Laid Off

Day 1:

• Take a breath. This is a shock.
• Review the severance offer (don't sign immediately)
• Collect your belongings and data (what you can access)
• Let trusted people know personally

Week 1:

• Review severance terms carefully
• Understand your benefits situation (COBRA timeline)
• File for unemployment if eligible
• Start telling your network

Week 2+:

• Follow the 14-day plan (see our guide: What to Do in the First 14 Days)
• Full job search mode

Common Mistakes

Mistake 1: Denial

Mistake 2: Panic Moves

Mistake 3: Neglecting the Current Job

Mistake 4: Going It Alone

Mistake 5: Not Negotiating Severance

What You'll Walk Away With

When you prepare properly for layoff risk, you get:

• Early warning awareness — Ability to see what's coming
• Financial runway — Time to search without desperation
• Updated materials — Resume, LinkedIn, positioning ready
• Network activation — People who can help when you need them
• A plan — What to do if it happens, step by step

The goal isn't to avoid layoffs—you can't always control that. It's to land well when they happen, and to have options regardless of what your company decides.