Common Impacts of Layoffs on Employees

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Summary

Layoffs can have profound and lasting effects on employees, impacting not only their financial stability but also their emotional well-being, self-confidence, and trust in organizations. Understanding these impacts is critical for navigating and supporting those facing such challenges.

  • Process your emotions: Acknowledge your feelings and allow yourself time to grieve the loss while preparing mentally for the next steps.
  • Rebuild financial stability: Focus on planning for short- and long-term financial recovery, including revising your budget and looking into benefits or severance packages.
  • Plan for new opportunities: Update your resume, network intentionally, and identify companies or roles that align with your skills and career goals.
Summarized by AI based on LinkedIn member posts
  • View profile for Danielle Cobo

    Disruption-Proof™️ Keynote Speaker | Give Your Team the Strategy to Stop Spinning and Start Winning | DiSC Behavior Model & Precise Selling™️ Certified

    34,023 followers

    😔 The moment you hear, “We’re letting you go,” everything shifts. Shock. Like the ground just disappeared. Anger. “I gave them everything—and this is how it ends?” Bargaining. “Maybe if I had just hit that number…” Denial. “This can’t be happening.” And finally, acceptance—because staying stuck in the past won’t build your future. I’ve been there. As a Senior Region Manager in aesthetic sales, I watched half my team get laid off in a single day. Good people. High performers. Completely blindsided. Getting laid off isn’t just losing a job. It’s grief. It’s identity loss. And if no one’s told you this yet—whatever you're feeling is valid. 👉 So where do you go from here? 1️⃣ Process your emotions. Before you update your LinkedIn, take a beat. Name what you're feeling so it doesn't control you. You can’t heal what you won’t admit. 2️⃣ Update your resume. Focus on results, not just responsibilities. Let your wins shine. 3️⃣ Optimize your LinkedIn profile. This is your online storefront—make sure it reflects your story, skills, and value. 4️⃣ Create a job search strategy. Random applying isn’t a strategy. Be intentional. Know your target roles, companies, and decision-makers. 5️⃣ Practice for interviews. Confidence is built through preparation. You're not starting over. You're starting stronger. 👇 If you’ve ever been laid off, what’s one piece of advice you wish someone had told you right away? → If you're navigating a layoff and wondering what’s next, send me a message. I’ve helped professionals in medical sales and leadership land roles they love—roles where they’re valued, respected, and finally excited to go to work again. Let's talk about your next chapter. You don't have to do this alone. #layoffs #careertransition #jobsearchstrategy #linkedinprofile #resumetips #aestheticsales #medicalsales #leadershipcoaching

  • View profile for Julie Kesler

    Member of the Technical Team at P-1 AI, building the metaphorical IV drip of data for engineering intelligence. Candle junkie and small business owner.

    2,574 followers

    I was laid off by Tiktok this week amidst a massive restructuring of our internal operations. It’s a classic “Decentralize Ops” move, which in a few years will probably end up in a new reorg to “Centralize ops,” both of which seem brilliant at the time they’re done, but rarely solve the root cause issues of the org not working well together. Needless to say, being laid off creates some space for critical reflection about our work, our economy, and the structure around employment created by our cultures, governments, societal pressures on the company, and competition. I’ve been thinking a lot about how different companies execute(d) their layoffs when it comes time to do a “necessary” restructure. TL;DR, If perfect layoff execution exists, I have yet to see it. Still, after nearly 10 years working in Tech, from early-phase startup to megacorp, nearly all of which have had at least one layoff during my tenure, there are some elements that soften the blow for those laid off, and for those left behind. 1. Severance (Obviously.). But not just “a severance,” a severance that considers the market conditions and competition for how long it realistically takes to find a job. Reports are coming in around 6-12 months of job searching with no dice, even for extremely strong candidates applying in their fields. Unemployment (if you can get it) doesn’t always cut it, especially for families with children, and caretakers. 2. Clues. Even though it can create anxiety, knowing a layoff is coming so people can begin their preparations and avoid making huge decisions a couple of months in advance. 3. At least 1-2 days’ notice. It may create data risk for the company, but it also creates space to grieve, share contact information and appreciation, get important documents like paystubs, 401ks, insurance, and more, plus share important materials with those left behind who have to keep that company afloat. 4. Timing and benefit extension. In my anecdotal experience, layoffs often happen at the end of the month, which can mean that for the laid-off, insurance is cut off mere days after the axe falls. People who have scheduled major medical procedures have to do so weeks or months in advance, and a sudden loss of insurance can devastate those plans. Even with COBRA (expensive) it could add extra hoops. 5. Empathy and follow-up. Remembering that the people leaving your company are people, who have dumped their heart and soul into their jobs. Give them resources and grounded communications that minimize the bulls*** and maximize context. I don’t know if everyone was treated equally in the Tiktok layoffs, but my heart goes out to all those like me who are now back on the job hunt in an economy that is unfriendly to folks coming out of employment, especially at bar-raising companies. Have more to add? Leave it here! 🔽 ❤️

  • View profile for Ravi Katta

    Founder & CEO @IILIFE | Helping tech pros & entrepreneurs build Legacy Wealth through real estate & alternative investments, keeping 40% more by minimizing taxes.

    57,157 followers

    💥 Layoffs don’t just hurt bank accounts, they shake confidence, loyalty, and trust. The financial psychology of layoffs reveals truths leaders can’t ignore. In my experience working with executives, the hardest part isn’t the numbers, it’s rebuilding faith. Research proves layoffs cause disengagement, depression, and long-term productivity loss. Yet with the right leadership approach, you can preserve both confidence and capital. Here are 5 insights you can apply today: 1. Layoffs break trust  ↳ Lead with transparency, fairness, and empathy to protect morale 2. Organizational health suffers  ↳ Recognize that short-term cuts often create long-term cultural damage 3. Best practices matter  ↳ Servant leadership and employee involvement ease transitions 4. Preserving capital  ↳ Teach resilience strategies that boost survivor confidence and financial habits 5. Legacy wealth strategies ↳ Encourage employees to build stability through alternative investments like real estate, modeling financial resilience and safeguards long-term impact When you apply these insights: 📍 You preserve trust even in turbulent times 📍 You strengthen long-term organizational resilience 📍 You build legacy wealth beyond the workplace 💬 How have you seen layoffs impact trust and capital in your industry? Enjoy this? ♻️ Repost, follow Ravi Katta and check out the link in bio for more content and resources on building legacy wealth.

  • View profile for Sherri Carpineto

    Operations Executive | Business Transformation Expert | Healthcare Leader | Strategist | Optimizer of tools and process to increase revenue | Career and Life Coach | Believer in Good Humans |

    155,084 followers

    The effects of layoffs are long-term. It's not just losing a job. It's losing so much more. Rebuilding 401K and savings accounts Behind on saving for retirement or kid's college funds Build up confidence again that can be shattered in a tough job process. Often damaged credit that can make finances even harder Many people take lower paying jobs or demotions and have to climb back up the corporate maze and then the fear of being laid off again.. Every time the economy sputters, the company doesn't make its numbers, or you get a "catch up" invite on your calendar.. your stomach drops and your heart beats faster Companies lay people off, give them severance (or not), and send them on their way. The company carries on making profit, which is their goal understandably. Current employees move on and take on new roles in the org. Life moves on. But to the person who was laid off, it can take months or years to fully be "complete" again. This is even harder for those who go through months of interviews, struggling to understand why their years of success are suddenly invisible. So the next time we tell someone a layoff is a "blessing" or a re-direction or they will land an even better job.. It may be true for some... but consider the long-term effects for many who put on a brave face for their families every day and still have re-building to do after they land a new role Be a good human #layoffs #jobs #empathy

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