navigating job loss

Last year, I wrote about layoffs for the first time, and it became one of the most shared newsletters I’ve ever sent. Since then, the world has changed. A lot.

Block just cut nearly half its workforce, with CEO Jack Dorsey saying AI tools made it possible to run the company with a “significantly smaller team.” Meta is reportedly planning to cut 20% of its staff to offset hundreds of billions in AI infrastructure costs. Oracle may slash up to 30,000 positions to fund AI data centers. Intel, UPS, Accenture, Verizon, and others have already cut tens of thousands of jobs each, with AI cited as a primary driver.

In 2025 alone, companies explicitly attributed 55,000 job cuts to AI. That number is already climbing fast in 2026, and we’re only in March.

And the pace is accelerating. Challenger Gray & Christmas, which has tracked layoff data for decades, reports that AI-driven job cuts may be significantly underreported because many companies restructure without naming AI as the cause. Goldman Sachs estimates up to 300 million jobs globally could be affected by generative AI. After cutting nearly half of Block’s workforce, Jack Dorsey predicted that “within the next year, the majority of companies will reach the same conclusion.” Block’s stock jumped 24% the day of the announcement. Wall Street got the message.

So I brought my husband, Pav, back for a much deeper dive. For those who are new here: Pav spent his career in HR leadership, including as Chief People Officer at The Athletic, which was acquired by the New York Times. He has conducted layoffs, coached people through them, and negotiated severance packages from the other side of the table. He’s one of the few people I know who can talk about this topic with both empathy and honesty.

By the way, after you’re done reading, take my quick poll at the bottom of the email to let me know if you want a much deeper dive on navigating layoffs. 👇🏼

I’ll let him take it from here.

I’ve had the “difficult conversation” with more people than I can count. The main piece of advice I give people is that anger, grief, sadness, and even despair are all normal and valid feelings. It may not be comforting in the moment, but these are emotions many people have experienced before you, and many people will experience in the future. That means you can and will get through it, too.

If you’re angry, one of the worst things you can do is express that anger publicly. You may be violating a confidentiality agreement or severance agreement, putting benefits, severance pay, or stock options at risk. One of the biggest and simplest mistakes I see employees make? Forwarding work emails to their personal email or to another person. This is almost always a violation of your workplace policies. Don’t do it. And don’t sign anything under pressure. You have more time than you think (and in many cases, the law guarantees it).

Most people don’t realize how much legal protection exists around layoffs. Here are the big ones:

If you’re 40 or older, the Older Workers Benefit Protection Act requires your employer to give you at least 21 days to review a severance agreement (45 days in a group layoff), plus a 7-day revocation period after you sign. If they didn’t give you that time, the waiver may not be enforceable.

If your employer laid off 50 or more employees without giving 60 days advance notice, look into the WARN Act. You may be entitled to up to 60 days of back pay and benefits.

If your severance includes a non-compete clause, know that several states, including California, ban or severely limit non-competes. The FTC attempted a nationwide ban in 2024, but it was blocked by federal courts. Check your state’s laws before assuming you’re locked in.

This is the tip most people don’t know: severance is almost never a take-it-or-leave-it offer. Employers have flexibility on more than you’d expect. Here’s what’s often on the table:

Severance pay duration or amount. The initial offer is a starting point. Push back, especially if you have tenure or were part of a mass reduction.

Health benefits continuation. Some employers will extend coverage or pay into your COBRA premiums for a period of time beyond what’s standard.

Equity and stock options. If you have unvested RSUs or unexercised options, ask about accelerated vesting or an extended exercise window. The default 90-day exercise window starts ticking the day you leave. Missing it means losing those options permanently.

Non-compete removal or narrowing. If the agreement includes a non-compete, you can often negotiate to remove it entirely or narrow the scope.

Outplacement services, reference language, and equipment. These are low-cost concessions for the employer and high-value for you. Ask for them.

The worst they can say is no.

File for unemployment right away. Even if you were let go for “performance issues,” employers rarely contest unemployment claims, and most states will rule in your favor unless you were fired for gross misconduct. Performance issues don’t qualify.

Roll over your 401(k). Your retirement account doesn’t disappear, but if you don’t roll it into an IRA or new employer’s plan, some companies will force a cash-out on small balances (under $7,000), which triggers taxes and early withdrawal penalties.

Plan for taxes on your severance. Severance is taxable income. If you received a lump sum, it could push you into a higher tax bracket for the year. Set aside a portion now, or adjust withholding at your next job, so you don’t get a surprise bill at tax time.

COBRA lets you continue your employer’s health plan, but the full premium (which your employer was subsidizing) can be a shock. Before defaulting to COBRA, check your options on the ACA marketplace. Losing your job is a qualifying life event that opens a special enrollment period, and marketplace plans are often significantly cheaper, especially if your income has dropped.

Also: your Employee Assistance Program (EAP) sessions may still be available for 30 to 90 days after separation. Free therapy during one of the most stressful stretches of your life, and most people don’t even know it’s there. Call your former employer’s HR department and ask.

Make a written request for a copy of your employee record, including performance reviews, offer letters, and compensation history. Sixteen U.S. states have laws guaranteeing employee access to these records within a specific time frame.

Get a formal letter of separation confirming you were laid off (not terminated for cause). This matters for unemployment claims, background checks, and even mortgage or rental applications.

And ask HR directly: what will you say when someone calls for a reference? Get the answer in writing if you can.

You’d be surprised how many people have experienced a job loss. Connect with your colleagues on LinkedIn (since you may no longer have their email), reach out to your network, and take ownership of your professional story. After you’ve had time to decompress, think about what you loved about your last role and what you want to change going forward. The best way to find your next opportunity is through your network. It’s hard to put yourself out there when your self-esteem is low, but you’ll likely find more support than you’d expect.

We live in a society that places “what you do for work” as the centerpiece of who you are as a person. That doesn’t make it true. It’s fine to worry about income and how to put food on the table, but don’t let this experience diminish your own self-worth. These two things are not the same.

Jenny again.

I’m getting messages every day about how to prepare for layoffs. I’m considering putting a mini-course together with my husband that gives you everything you need to have ready if you lose your job. Let me know if you would be interested.

A quick note on AI. Many of the layoffs happening right now are being framed as “AI-driven,” and the data supports that framing. But here’s what I want you to take from this piece: whether your job was cut because of AI, restructuring, or a bad quarter, the playbook for protecting yourself is the same. Know your rights, negotiate your severance, protect your money, and lean on your network.

These companies have lawyers. You should have information.

Feel free to connect with Pav if you found this helpful, or book him directly for advice on your HR situation.

Have you experienced a layoff? How did you get through it? Hit reply and tell me. I read every response.

P.S. Know someone who just lost their job, or someone who’s worried they might? Forward this email. This is the kind of information that’s worth having before you need it.

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