Effects of Layoffs on Employee Well-Being

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Summary

The effects of layoffs on employee well-being are profound and multifaceted, impacting not only financial stability but also mental health, self-esteem, and identity. Layoffs disrupt a person’s sense of purpose and security and can often lead to emotional trauma and stress, making support and self-care essential during such transitions.

  • Prioritize emotional health: Allow yourself time to acknowledge and process your feelings, whether they include grief, stress, or uncertainty, and remember that seeking support is a sign of strength, not weakness.
  • Reconnect with your identity: Focus on aspects of your life beyond work, such as relationships, hobbies, or personal growth, to help rebuild a sense of self outside of job titles.
  • Take control of next steps: Develop a structured job search plan, update your resume and LinkedIn profile with your achievements, and seek out networking opportunities to prepare for your next opportunity.
Summarized by AI based on LinkedIn member posts
  • View profile for Bonnie Dilber
    Bonnie Dilber Bonnie Dilber is an Influencer

    Recruiting Leader @ Zapier | Former Educator | Advocate for job seekers, demystifying recruiting, and making the workplace more equitable for everyone!!

    472,850 followers

    Layoffs are one of the most traumatic things people can experience. Especially when most Americans are living paycheck to paycheck, unemployment benefits and part time jobs are unlikely to cover their expenses, and a job search can easily take 6+ months. But it's not just the financial trauma. It's also: - losing colleagues who have become friends - losing access to an office and community that you may have spent more time in than your own home - not quite knowing who you are when your identity was wrapped up in your employer and job title - feelings of shame wondering why you were selected, as well as how your family that's counting on you will react There's a plethora of research on the trauma of layoffs, some finding that it's more stressful than the trauma of a divorce or death of a friend. Yet those who are laid off are expected to just "get over it" and to jump right in to finding another job often without having time to even really grieve and process what happened. There's probably some systems-level stuff that could be done: requiring more notice, mandating severance packages, increasing unemployment benefits. Perhaps there could be more funds akin to PPP loans (but better managed) to help companies get through the ebbs and flows without needing to do layoffs. Imagine if a layoff included access to therapy and job search assistance. And as a part of the workforce, we can: -try to "layoff proof" ourselves through secondary income streams, maintaining networks and resumes, and essentially being job search ready at all times -maintain an identity that goes beyond that of "employee at company" so that we have other spaces where we can feel connected and like we belong that won't be so fleeting -offering the kind of support we would to people who have been through other forms of trauma - this could be reminding them that it's OK to grieve and they don't have to jump right into their search on day one, offering meals or other kinds of care we might offer friends impacted by more "traditional" trauma -and of course, we can help by making referrals, sharing opportunities, and shutting down false narratives around people impacted by layoffs to diminish the stigma.

  • View profile for Liam Paschall
    Liam Paschall Liam Paschall is an Influencer

    Centering humanity, one personal insight at a time. All views are my own. | Learning & Development Leader | Sales Leader | Enablement & Leadership Development | Keynote Speaker | DEI Champion

    35,146 followers

    I've been talking about #layoffs for some time now, and after being impacted yesterday, I thought I'd try to share just a little bit about what it feels like to be on the receiving end. It's all too often overlooked in the #corporate world – the #human impact of layoffs. Managers and HR professionals are often trained to handle layoffs with #professionalism and #efficiency. But do they truly understand what it feels like to be on the receiving end of that life-altering message? Layoffs are more than just a corporate decision or a line in a financial report. For many, #work isn't just a #job; it's a significant part of their #identity. It's where they spend countless hours and invest their energy, and often, it's a source of #pride and #accomplishment. So, when someone is laid off, it's not just a job they lose. It's a part of their life, abruptly taken away. Imagine the whirlwind of #emotions that hit at that moment. There's shock, often followed by a deep sense of betrayal. There's #fear about the future, #anxiety about finances, and the daunting task of #JobHunting. But more than anything, there's a profound hit to your ego and #confidence. It's a blow that can leave even the strongest individuals reeling. For those who loved their job and were committed to their #company, the pain is even worse. It's like losing a piece of yourself. You're left questioning your worth, your #abilities, and sometimes, your entire #career path. The uncertainty and self-doubt can be overwhelming. I want to ask #CEOs, #managers, and #HR folx (especially those who have never been on the receiving end): Do you truly understand this? Are you #empathetic to the emotional turmoil that these decisions cause? It's crucial to remember the human element in these situations. Behind every layoff notice is a person with dreams, responsibilities, and fears - a person who started work that day (more often than not) without any knowledge that this was going to happen. I wish I could word it differently and explain how it truly feels, but I don't think there are adequate words to do that. I guess what I'm saying is this: If you absolutely have to lay someone off, don't forget the human heart involved. Please handle these situations with as much empathy and support as you can offer. Because at the end of the day, we're all human, and a little compassion can make a world of difference in someone's life.

  • View profile for Ira Winkler

    Award winning CISO, top-rated keynote speaker, bestselling author, but really just trying to leave the world more secure than how I found it. Feel free to Connect instead of just Follow.

    28,110 followers

    People who are laid off exist. Frankly, they get ignored by events, vendors, companies, etc., because they are not going to provide any immediate return on investment. All of this contributes to the embarrassment and shame for those people who are laid off. They are not alone. When I created CruiseCon, I created it for everyone, including those who can't attend, because they may not have a job. These are the people who need the help, support, and guidance the most, but again, people don't address them. To that end, I reached out to 🐐Steve Shelton 🐐 at Green Shoe Consulting to provide some guidance for those laid off, may be laid off, or anyone who just wants to support them. We will have Steve on a future CruiseCon in a Careers track to cover this in person. The video summary is: Ira interviewed Steve, an expert on career issues and burnout, to discuss how cybersecurity professionals can cope with layoffs and the emotional impact of involuntary job loss. Steve emphasized strategies for regaining control and building resilience, including focusing on personal values, seeking community support, and maintaining a daily routine. They also discussed overcoming embarrassment and shame associated with job loss, suggesting support groups and reframing negative thoughts. Details Addressing Layoffs in Cybersecurity Ira interviewed Steve, an expert on career issues and burnout, to discuss how cybersecurity professionals can cope with layoffs, a prevalent issue in the industry. Steve noted that Green Shoe Consulting is conducting the industry's first evidence-based research on stress and burnout specific to CISOs, with findings to be published in August. They highlighted the emotional impact of involuntary job loss, emphasizing the need for a mourning and grieving period. Strategies for Regaining Control and Building Resilience Steve advised focusing on controllable aspects of life, starting with understanding personal values as a foundation for identity. They also stressed the importance of community support to combat loneliness and maintain mental resilience, encouraging networking and leaning into one's social circle. Creating a daily routine and engaging in hobbies were also recommended for personal well-being, along with considering career coaching and envisioning the ideal future role and environment rather than just taking the next available job. Overcoming Embarrassment and Shame Ira raised the challenge of embarrassment associated with job loss, and Steve expanded on this, noting that shame can diminish confidence and inhibit action. Steve suggested having a support group for venting feelings and emphasized the importance of accepting the situation while reframing negative thoughts. They concluded that negative feelings like embarrassment or shame do not always reflect how others perceive the situation, and encouraged individuals to consider how they would help others in similar circumstances. To get related content, please follow CruiseCon.

  • View profile for Marilyn Carroll, Ph.D., MBA, M.ED, MIT

    AI Strategy Consultant for Organizations | Helping Leaders Modernize Systems, Workforce & Operations | Creator of Holographic Professor & Leadership Flight Deck

    5,713 followers

    Yesterday, I spoke to 10 people. Each of them had just been laid off. Different industries. Different stories. But one shared thread: uncertainty. So I asked them one simple, powerful question: “After being laid off, what’s the most important need you feel right now— Survival, Security, Connection, Confidence, or Purpose?” It’s a question rooted in Maslow’s Hierarchy of Needs, and it opened the door to real conversations—raw, honest, and vulnerable. Some said survival—paying bills, keeping a roof over their head. Others said security—how to plan, what’s next, how long they could last. A few needed connection—to not feel so alone. Several were grieving their lost confidence. And others were asking “what now?”—searching for purpose beyond a title. Here’s what I’m learning: Career coaching isn’t just about resumes and job boards. It’s about emotional triage, human dignity, and rebuilding from the inside out. To anyone facing a layoff: You are not your job title. You are worthy of care, clarity, and a path forward. Let’s keep asking better questions. Let’s meet people where they are. And let’s build bridges to what’s next. #CareerTransition #Layoffs #Maslow #Coaching #Leadership #Reinvention #CareerSupport #HumanFirst

  • View profile for Geoffrey Colon

    Creative Technologist | Systems Architect | Content Designer | CreativeStudies.News | Author of Disruptive Marketing | Ex Microsoft, Ogilvy, Dell

    183,795 followers

    Just a reminder to those laid off this month, or who will be laid off this month or who will be laid off at the beginning of the new calendar year as we kick off a new fiscal the following: 1. It has nothing to do with your individual performance. It has everything to do with organizational performance. 2. It’s a spreadsheet exercise. The exercise literally is like this: “Hey we need to cut $XY million in fixed budget. Labor is the largest cost. Get me a list by Friday so we can run it by HR before we set the notification date.” It’s a very rational exercise where many try not to twist up in emotions although that’s hard not to do. 3. Your manager should deliver the news. Not some stranger. If they are a true leader they will deliver the news in a 1:1 not some group setting in a Zoom. They are usually required to read a script so don’t hold that against them if they sound cold and rational. It is what it is. 4. A job is not your identity. People who think this need to touch more grass in life. Maybe take up something that truly tests your will. 5. It’s okay to cry, feel stress, feel anxiety. A layoff is trauma. Especially since so many live paycheck to paycheck. Stages of grief are natural: denial, anger, bargaining, depression, and acceptance. Each person has a different timeline. Some jobs people are so over it as they’re being told so they are in acceptance immediately. Others are so shocked it takes them a few months maybe even years. You do you. 6. Spend time with people who love you for who you are. And love titles like dad, mom, grandpa, Nonna, brother, sister, cousin, boyfriend, girlfriend, friend, cool person, etc., and could care less about the fact you were the Senior Fellow Philosopher Lead Engineer of BS Hype. 7. Reach out. I’ll listen!!!!

  • View profile for Becca Chambers ✨

    CMO @ Scale | Top 0.1% LinkedIn Creator aka “Becca from LinkedIn” | Brand and Communications Strategist | VC and Tech Marketer | Podcast Host | Neurodiversity Advocate

    83,458 followers

    We don’t talk enough about the emotional and mental toll of a layoff. It’s not just about losing a job or stressing over what’s next. 🌨️ It cuts to the core of your identity. 🌨️ It makes you question yourself. 🌨️ It wrecks your self-esteem. We often think the people who need to hear "layoffs aren't a reflection of skills" are hiring managers. But maybe the people who need to hear it most… are the ones who just got laid off. Because even if they know they’re great at their job—even if they were a well-liked, kickass employee—there’s still that nagging voice whispering: "Did I get laid off because something is wrong with ME?" So let me be loud and clear for those recently laid off and my fellow job seekers: 🗣️ NO. 🗣️ There is absolutely nothing wrong with you. 🗣️ Your layoff is NOT a reflection of your abilities. Read that again if you need to. That negative voice is LYING. YOU didn’t do anything wrong. Business decisions sometimes suck. And those decisions had nothing to do with you, your abilities, or your performance—your layoff is an unfortunate consequence of other people’s decisions and actions. It shouldn’t be this way, but sadly, sometimes it is. So shut that nagging voice down. Because it’s dimming your light. And you are here to freaking shine. ✨ ✨ ✨ If this kind of negative self-talk enters your brain, how do you shut that voice down before it brings you down?

  • 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 George Murray, MBA, LSSBB

    COO & President | Architect of Business Transformation | Integrating AI Strategy for Market Leadership, Profitability & Sustainable Growth | Culture-First Leader | Army Veteran | Best-Selling Author

    18,321 followers

    This resonates deeply. The erosion of trust between employees and employers isn’t just a “market cycle” problem—it’s a human one. Two years ago, companies lamented “quiet quitting” and begged for loyalty, empathy, and “purpose.” Today, many of those same organizations are posting record profits while treating employees as expendable line items. The whiplash is staggering. What’s truly lost here isn’t just fairness—it’s the belief that work can be a partnership. Leaders like Simon Sinek (and countless others) preach psychological safety and human-centric cultures, yet so many companies default to transactional relationships the moment the power dynamic shifts. Employees aren’t naive; we know work is work. But when layoffs surge, well-being erodes, and “culture” becomes a hollow buzzword, it reinforces a painful truth: we’re not people here—we’re profit levers. The saddest part? Many of us want to believe in workplaces that care. We’d gladly invest in companies that invest in us. But after years of whiplash—from “you’re family!” rhetoric to cold, spreadsheet-driven cuts—we’re left navigating a landscape where mutual respect feels like a relic. And yes, we’re quietly waiting for the pendulum to swing back. But should we have to? I have been laid off and had to do layoffs-I dislike it-the whole process, no one wins. To leaders reading this: Trust isn’t a commodity that fluctuates with the market. It’s built daily, through consistency, transparency, and treating people like humans—not just in boom cycles, but especially when profits rise and pressures mount. The “employee market” will return, but the scars of this era will linger. The question is: Will your culture be worth returning to? For now, many of us sit, work, and wonder—how many times can you break trust before it stops mattering? David Horsager writes a few great books on #Trust in the workplace #WorkplaceCulture #Leadership #TrustInBusiness #EmployeeExperience #TrustMatters

  • View profile for Erin Kennedy, MCD, CERW, CRA, CERM, CMRW, CEMC

    We help executives land jobs 2-3X faster than average | Executive Resumes | LinkedIn Profile Writing | Executive Coaching | Career Storyteller | OFFICE LATTE PODCAST

    64,196 followers

    Think your body is unaffected by layoffs and work stress? 🤔 Think again. I realized about twenty years ago that my body talks to me. Every time I would feel overworked, taking on too much, or stressed about something at work, my throat would start feeling sore. The more I ignored it, the worse it would get. I started keeping track and realized it was a pattern. 📈 Stress = Sore Throat. A HuffPost article notes that according to the American Psychological Association (and several other health professionals), when a person is laid off or experiences job loss they are not only losing their job but pieces of their lives as well. You might feel: -       Your mental health gets worse -       Your personality changes and you feel moody -       Your appetite may increase or decrease Corporate Wellness Magazine dot com offers suggestions on how to reverse the toll that work stress and loss of work stress can place on us: 🌺 𝗛𝗨𝗠𝗢𝗥 When things get tough, talk to a friend who makes you laugh. Watch something funny. - Lighten up your mood with humor. 🌺 𝗥𝗘𝗟𝗔𝗧𝗜𝗢𝗡𝗦𝗛𝗜𝗣𝗦 Find someone from your company who has been there. If you are part of a mass layoff, get together with others to commiserate, talk about your options, and look for job search clubs in your area. - Rough times are a little easier if you have someone to talk to about it who knows what you are going through. 🌺 𝗢𝗥𝗚𝗔𝗡𝗜𝗭𝗘 Having too many unfinished projects at work or home puts stress on us as well. Prioritize-- do the most important ones first. - Let a project distract you from the layoff. 🌺 𝗪𝗔𝗟𝗞 If you have never exercised, now is the time. My favorite type is walking. Walking releases endorphins that boost our mental health and our mood. - Move your body and release stress. Working on yourself at times like this is as important as working on your career. //// ☘️ My name is Erin and I'm an executive resume writer, LinkedIn profile writer, and career coach.   --> 𝗟𝗶𝗸𝗲 𝘄𝗵𝗮𝘁 𝘆𝗼𝘂 𝗮𝗿𝗲 𝗿𝗲𝗮𝗱𝗶𝗻𝗴? FOLLOW ME and/or ring my bell and you'll be notified when my next post hits.  *Comment and share this post!*   --> 𝗡𝗲𝗲𝗱 𝗵𝗲𝗹𝗽 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗿𝗲𝘀𝘂𝗺𝗲 or 𝗟𝗶𝗻𝗸𝗲𝗱𝗜𝗻 𝗽𝗿𝗼𝗳𝗶𝗹𝗲?  𝗗𝗠 𝗺𝗲!📨

  • View profile for Jennifer Schlador

    Think Jerry Maguire for Job Seekers, Job Search Strategist, Job Coach

    53,614 followers

    Layoff trauma is real! It can be a full-on attack on your self-worth. It may feel like a personal confirmation of every negative thought you've ever had about yourself. Your rational mind knows the layoff had nothing to do with you personally. But when emotions are running strong, it’s not easy to embrace reason and logic. And telling someone to just think positive can be like telling someone who just got the wind kicked out of them to take a deep breath. A healthy approach is to give yourself space to process everything you’re feeling instead of trying to rush past it. This may not feel possible given your very real financial concerns; however, it is still important. The pace at which you move through this process will depend on whether you embrace your emotions without judgment or simply push through them by leaning on coping skills to avoid or suppress whatever you’re feeling. But here is the key- Separate facts from your own emotional reactions, all the things you know to be true even though they didn’t feel true at first. The company was acquired by another organization. Thousands of people were laid off; I wasn’t the only one. I was great at my job, actually. Identify all the work you did for which you are proud. This is what you want to be fresh on your mind as you consider your options moving forward. You got this! It wasn't personal. #jennsjobs

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