Preparing for a Layoff: A Step-by-Step Guide to Protecting Yourself
The Ai-ification of the world has companies using it as a reason to lay off workers and, in some cases, rehire them at lower salaries. When companies make cuts, employees are often the last to know and the first to lose access to their files, to their health insurance, and sometimes, to their sense of stability.
Whether you’ve heard rumors of layoffs or saw the news that your company (like Amazon and others recently) is planning massive cuts, it’s time to prepare. Being proactive doesn’t mean you’re paranoid. It means you’re protecting yourself in a system that isn’t built to protect you.
Here’s what I tell every client to do the moment layoffs are on the horizon.
Secure Your Records Before You Lose Access
When layoffs hit, IT often disables accounts immediately after your meeting. Don’t assume you’ll have time to grab what you need later.
Download everything you’re legally allowed to keep, performance reviews, recognition emails, pay stubs, project documentation, and proof of your contributions.
Save copies of benefits documents like health insurance details, COBRA instructions, 401(k) statements, and equity plans.
Export your contacts and any non-proprietary materials you created.
Take screenshots or notes of your access and permissions, it can help prove what systems or data you managed if questions arise later.
If you have evidence of discrimination, retaliation, or bias, make sure that information is backed up and timestamped. Once your access is gone, it’s gone.
The Wrk Receipts app automatically adds timestamps and lets you attach documents, photos, videos, and audio recordings.
Protect Your Health Coverage While You Still Can
Most companies end health insurance on the last day of the calendar month in which you’re employed. That means if layoffs are announced on October 31, your coverage may end that same day.
Here’s what to do:
Book all medical, dental, and vision appointments right now. Even if it’s just a check-up, get it on the calendar before your coverage ends.
Refill prescriptions for at least 90 days if possible.
Ask HR for COBRA details and whether there’s a gap between coverage ending and COBRA beginning.
If you’re on an HSA or FSA, spend down those funds before termination to avoid losing them.
Get Financial and Legal Clarity
The days following a layoff can be confusing, especially when you’re presented with documents full of fine print. Here’s how to protect your income and your rights:
Request a copy of your PTO balance and ask whether it will be paid out. Get that answer in writing.
Save your offer letter, promotion letters, and bonus or commission plans. You’ll need these to verify severance and ensure you’re not shortchanged.
Do not sign anything immediately. Ask for time to review any severance agreement, non-disparagement clause, or release of claims. You are legally entitled to time, especially if you’re over 40 and offered a group severance under federal law (the Older Workers Benefit Protection Act).
If something feels off, call an employment attorney before you sign. Severance agreements often contain hidden waivers that prevent you from filing claims later.
Control Your Career Story
Once your work email is deactivated, you’ll lose access to years of evidence showing what you achieved.
Document your wins now. Write down major projects, metrics, and outcomes while you still remember the details. Use documentation tools like Wrk Receipts to safely log your accomplishments, upload supporting documents, and timestamp your records for future reference.
Ask trusted colleagues for references privately. Don’t wait for formal announcements.
Update your résumé and LinkedIn profile while the information is fresh.
Remember: layoffs are not a reflection of your worth, they’re a business decision. But how you prepare determines how quickly you recover.
If You Suspect Retaliation or Bias
Not all layoffs are neutral. If you believe you’re being targeted because of your race, gender, disability, protected activity, or previous HR complaint, take extra precautions:
Save emails, performance notes, and Slack messages showing inconsistencies or differential treatment.
Keep a contemporaneous journal of what’s happening — who said what, and when.
Consult an employment attorney before signing anything. If your layoff was retaliatory or discriminatory, you may be entitled to additional remedies.
Get Grounded and Plan Your Next Steps
The emotional toll of layoffs is real. Give yourself space to process, but also take practical action:
Create a 60–90 day budget assuming reduced income.
File for unemployment benefits as soon as you receive your separation notice.
Check your state’s worker protection laws. Some states (like California and New York) have additional requirements for notice and payout.
Stay connected. Reach out to colleagues, career networks, and support resources like Caged Bird HR for guidance and emotional support.
How Caged Bird HR Can Help
If you’re facing a layoff, Caged Bird HR provides independent HR support designed for employees, not corporations. Our consultants can help you:
Educate you on strategies used to maximize your severance
Strategize next steps if you suspect retaliation, discrimination, or unfair targeting.
Navigate unemployment claims and COBRA benefits with confidence.
Rebuild your career path with clarity and support during transition.
You don’t have to navigate this alone. Book a Discovery Call to speak with an independent HR professional who can help you understand your options and protect your future.
The Bottom Line
You don’t control corporate decisions but you do control how prepared you are when they come.
Save your records. Protect your benefits. Don’t sign away your rights.
And when in doubt, document everything. Apps like Wrk Receipts make it easy to track what’s happening at work, from performance reviews to HR conversations so you’re ready with proof when it matters most.
If something doesn’t feel right, get legal or HR guidance before you agree to anything.
Disclaimer: This post is for informational purposes only and does not constitute legal advice. If you need legal advice specific to your situation, contact a licensed employment attorney in your state.