How To Deal With Layoffs: What to Do When Your Company Starts Letting People Go

The moment you hear about layoffs happening in your company, a wave of uncertainty can hit hard. Even if you haven’t received a pink slip yourself, the atmosphere changes, and you can’t help but wonder, “Am I next?” Whether you’re directly affected or just witnessing the shift, knowing how to navigate this situation can make all the difference in securing your professional future.

Assess the Situation Without Panic

It’s easy to jump to conclusions when layoffs start happening, but take a step back. Is this a widespread downsizing, or is it limited to specific departments? Are executives offering any explanations? Pay attention to how leadership communicates about the situation—this will give you insight into whether more cuts are likely or if this is a one-time adjustment.

If you’re worried about your position, look at the factors involved in the layoffs. Are they based on performance, seniority, or company restructuring? Understanding the pattern can help you gauge your own job security and prepare accordingly.

Strengthen Your Position Within the Company

If you're still employed but feeling uneasy, now is the time to make yourself indispensable. Take on responsibilities that highlight your value, align yourself with projects that impact the company’s bottom line, and maintain strong relationships with leadership. Visibility matters, especially in times of uncertainty.

At the same time, keep an eye on internal job postings. Sometimes, companies will eliminate certain roles but open new ones. If you sense your position might be at risk, see if there are opportunities to transition into a more secure role within the organization.

Get Your Backup Plan Ready

Even if your job seems safe for now, don’t take chances. Update your resume, refresh your LinkedIn profile, and reconnect with professional contacts. If you’ve been at the same company for a long time, the job market might look very different from when you last searched. Start researching industry trends, salary expectations, and in-demand skills.

Speaking of skills, this is also a great time to upskill. If layoffs are happening, it’s a sign that the industry—or at least your company—is changing. Consider taking an online course, earning a certification, or attending networking events to boost your employability.

Manage the Emotional Impact

Layoffs create a stressful environment, even for those who aren’t directly affected. Seeing colleagues lose their jobs can be unsettling, and survivor’s guilt is real. Acknowledge your emotions, but don’t let fear dictate your actions. Instead, focus on what you can control—whether it’s improving your performance, strengthening your network, or preparing for a potential transition.

If you’ve lost your job, give yourself time to process the news. Job loss can feel personal, but in most cases, it’s a business decision, not a reflection of your worth. Reach out to colleagues for support, explore unemployment benefits if applicable, and create a structured plan for your job search.

Explore New Opportunities Proactively

Sometimes, a round of layoffs is a signal that it’s time to move on—even if you haven’t been directly affected. If your company is struggling financially, delaying an inevitable job search might not be in your best interest. Consider whether staying is the best long-term move or if you should start looking for a more stable opportunity elsewhere.

You don’t need to wait until you’re forced out to explore new options. Even if you’re not planning to leave immediately, testing the waters by applying to jobs, attending interviews, or speaking with recruiters can give you a better sense of your marketability.

Turning Uncertainty Into an Opportunity

Layoffs are never easy, but they don’t have to be the end of the road. Whether you stay with your company or transition to something new, this period of change can serve as a catalyst for growth. Use this time to sharpen your skills, strengthen your professional network, and reassess your career goals. Sometimes, what feels like a setback is actually an opportunity in disguise.