The Situation

Why Preparation Beats Response

A layoff's financial impact is determined more by the condition of your finances at the moment it happens than by anything you can do afterward. An emergency fund covering 6 months, a clear understanding of your severance terms, low fixed costs, and a current resume and network reduce both the duration and financial severity of an income disruption.

The best time to prepare for a layoff is when you don't need to. Preparation during employment is the only time you have full financial flexibility to act.

— Worthune Decision Framework

• Your emergency fund covers fewer than 4 months of actual expenses
• You're unclear on your employer's severance policy, COBRA continuation terms, or unemployment eligibility
• You haven't updated your resume, LinkedIn profile, or professional network in over 12 months