What to do after sudden unemployment

Fintech company Bloc announced Thursday it would lay off about half its workforce, adding more than 4,000 employees to the unemployed ranks overnight.

Experts say that when a large portion of a company’s workforce suddenly faces job loss, it can pose a variety of unique financial and career challenges.

Mass layoffs “lead to a very Hunger Games-like situation where you’re competing against a bunch of people for a limited number of jobs,” says career coach Tessa White, founder of Job Doctor.

Data suggests that the number of layoffs is on the rise. The number of layoffs announced by U.S. employers in January was the highest in a single year since 2009, according to outplacement firm Challenger, Gray & Christmas.

Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, said in a statement: “The number of layoffs is typically high for the first quarter, but this is a high January total. This means that most of these plans were set for the end of 2025, indicating that employers are less than optimistic about the outlook for 2026.”

including other companies, Amazon, pinterest, cloud strike and Cheggrecently announced significant staff reductions.

Block CEO Jack Dorsey said in a letter to shareholders that the automation of certain roles through artificial intelligence could lead to further layoffs across the industry. He cited that as a contributing factor to the company’s layoffs.

“Within the next year, the vast majority of companies will come to the same conclusion and make similar structural changes,” Dorsey said.

For workers caught in the crosshairs, Monster Careers expert Vicki Salemi said, “There may be feelings of sadness, shock and loss. These feelings are normal and unfortunately part of the termination process.”

Still, there are some important steps workers should take before signing on the dotted line, she says, and “always try to negotiate terms.”

Negotiating the continuation of your employer’s health insurance is probably the “best thing” to strive for before leaving, said Elaine Ferndale, a professor at Penn State’s School of Labor and Employment Relations.

Your benefits, especially health insurance, may end on or shortly after your last day of employment. Even after your coverage period ends, you may be able to continue your company plan under COBRA (Consolidated Omnibus Budget Reconciliation Act).

In the case of mass layoffs, negotiations can be more difficult because so many people are trying to be laid off at the same time. But experts say the power of numbers could work in their favor.

Mr Ferndale suggests doing this en masse, so there is a “sound wave” of workers asking for the same, highlighting the potential reputational damage to employers who perhaps did not treat workers well during mass layoffs.

White said workers who receive equity subsidies can also negotiate vesting schedules. For example, you can ask the company to accelerate the vesting of your unvested shares.

To “maximize your paycheck” for the loss of income, you can also ask to change your deductions to reduce the amount of taxes withheld and stop your 401k deduction before your final check is paid, she said.

Your former employer may also offer outplacement services that can assist with resume screening, mock interviews, and other job resources.

Experts say this could be a particularly valuable advantage, as workers laid off in mass layoffs may face greater difficulty finding new roles than those laid off in small cuts.

It may also be especially difficult for workers to recover, with the employment rate at its lowest in more than a decade. Unlike previous years, there are currently more workers available than job openings.

On the other hand, fewer workers are choosing to leave their jobs, a trend known as “big stays,” which could reduce competition for jobs available to the broader workforce.

White said that in interviews and resumes, rather than worrying about being fired, it can be helpful to “focus on the future rather than the past” and highlight skills that will be useful in the new role.

To stand out among other job seekers, such as former teammates or colleagues with similar experience, she recommends including two to three short quotes of recommendations or praise from others at the end of your resume.

“It may actually help make it easier to get an interview instead of waiting until the end of the process,” White said, noting that letters of recommendation are typically only checked on final candidates. “Your resume isn’t just telling people that you know how to do things; it’s trying to make you believe that you know how to do those things.”

Laura Ulrich, director of economic research at career site Indeed, encouraged job seekers to broaden their application pool in the current market.

For example, if you’re an accountant at a technology company, she says, it may be difficult to land a similar accounting job in the technology industry, which has seen relatively more layoffs than other industries. But she says those skills could probably be used in fields that are recruiting, such as health care, leisure and hospitality.

“The 2026 labor market requires people to think more holistically about how their skills apply to a wide range of fields,” Ulrich said.