What to do after a sudden job loss
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Fintech company Block announced Thursday that it had laid off nearly half of its workforce, adding more than 4,000 workers to the unemployment ranks overnight.
When a company faces a sudden job loss for a significant portion of its employees, it can trigger a unique set of financial and career challenges, experts say.
With mass layoffs, “you’re really in a ‘Hunger Games’-like competition against a lot of people to take the few jobs that are available,” said career coach Tessa White, founder of The Job Doctor.
Data shows the number of layoffs is rising: Layoff announcements among U.S. employers in January were the highest since 2009, according to job placement firm Challenger, Gray & Christmas.
“We’re seeing a lot of layoffs overall in the first quarter, but that’s a high total for January. That means most of those plans are set at the end of 2025, signaling that employers are less than optimistic about the 2026 outlook,” said Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas. expression.
Including other companies Amazon, on Pinterest, CrowdStrike And CheggIt also recently announced significant layoffs.
Block CEO Jack Dorsey wrote: letter to shareholders that automation of certain roles driven by AI could lead to further disruption in the industry. It’s a strength he says has contributed to layoffs at his company.
“I believe that within the next year the majority of companies will reach the same conclusion and make similar structural changes,” Dorsey said.
How to negotiate after mass dismissal?
Block, Inc. Its logo appears on the screen of a smartphone in Reno, United States, on December 1, 2024.
Jaque Silva | Nurfoto | Getty Images
For workers who remain targeted, “there may be grief, shock, a sense of loss; these feelings are normal and unfortunately part of the layoff process,” Monster career expert Vicki Salemi said.
Still, he said there are a few important steps workers should take before signing on the dotted line: “You should always try to negotiate terms.”
Your social benefits, especially healthcare, may end on or shortly after the last day of your employment. When your coverage ends, you can remain in the company plan under COBRA, the Consolidated Omnibus Budget Reconciliation Act.
Mass layoffs can be more difficult to negotiate when many people are trying to do it at the same time. But experts say the power of numbers can work in your favor.
Farndale suggests doing this collectively, so there is a “base surge” of workers wanting the same thing, perhaps highlighting that not treating workers well during mass redundancies can damage an employer’s reputation.
Workers who receive equity grants may also try to negotiate vesting schedules, White said. For example, you can ask the company to accelerate the vesting of unvested shares.
To “maximize your paycheck” as you prepare for the loss of income, you can also ask to change your tax deductions to allow less tax to be withdrawn and stop your 401k deductions before your last check goes out, he said.
Your former employer may also provide job placement services to assist with resume reviews, mock interviews, and other job resources.
Experts say this could be a particularly valuable benefit; because workers fired during mass layoffs may face greater difficulties in finding a new job than those laid off during smaller-scale layoffs.
And with the hiring rate at its lowest level in a decade, it may be especially difficult for employees to recover. Unlike previous years, there are now more available workers than open positions.
On the other hand, as fewer workers choose to leave their jobs, there may be less competition for available jobs in the larger labor pool; this trend is called the “big stay.”
How can you stand out when looking for a new role?
In interviews and on your resume, emphasizing the skills you’ll bring to a new role rather than dwelling on your layoff helps “focus on the future rather than the back,” White said.
To stand out among other job seekers, including former teammates and colleagues with similar experience, he recommends including two or three short quotes at the bottom of your resume from recommendations or compliments people have given you.
“It can help make it easier for you to get an interview, rather than waiting until the end of the process,” White said, noting that references are typically only checked for final candidates. “Your resume not only tells people that you know what to do and how to do it, it also tries to convince them that you know how to do those things.”
Laura Ullrich, director of economic research at career site Indeed, recommended job seekers expand their applicant network in the current market.
For example, if you’re an accountant at a tech company, he said, it may not be easy to land a similar accounting job in tech, an industry that has seen relatively more job losses than others. But perhaps you could use those skills in an industry that is hiring, such as healthcare or entertainment and hospitality, he said.
“In the labor market of 2026, you need to think more holistically about how your skills will be applied across a wide range of sectors,” Ullrich said.
