Navigating redundancy: What to do if you get laid off by your startup

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Being laid off from your startup can be unexpected, disruptive and emotionally taxing. While there are many upsides to working at an early-stage company, unfortunately job security can be one of the major downsides. From Google and Amazon to Discord and Duolingo, fresh rounds of tech layoffs keep coming amidst an uncertain economy. But fear not, we’ve compiled this guide to help you bounce back. 

Know your rights 

The first step after being laid off is to get the necessary information from your employer and make sure you fully understand the benefits you’re entitled to — this is crucial for negotiating a fair exit package. Be sure to double check your employment contract, understand how long your notice period is and when you’ll get your final paycheck, as well as investigate any severance pay or other benefits you may be owed. You may also want to ask for references or copies of your performance reviews before you go.  

Assess your financial health 

Next, it’s time to evaluate your finances. Assess your savings and explore any available financial assistance or support programs, such as jobseeker’s allowance in the UK and unemployment benefits in the US. You may want to create a budget to help you gauge how long you can comfortably sustain yourself while searching for a new opportunity.  

Take time to process the transition 

Being laid off can really knock your confidence, but it can also be an unexpected opportunity to reassess your career goals and explore new avenues. Before diving into job applications, take some time to reflect, research emerging trends that interest you and explore new industries or roles. Visiting the portfolio pages on VC websites is a quick way to discover many startups at once. 

Consider short-term employment 

Want to make some cash on the side while searching for your dream job? If it’s taking longer than anticipated to land your next full-time gig, you might want to consider freelancing, contracting or starting a side hustle. This can help bridge the gap between jobs, keep you financially stable and may lead to further opportunities or new connections along the way. 

Network, network, network 

We all know the saying “it’s not what you know, it’s who you know”. In the tight-knit startup world, networking and introductions from mutual connections play a pivotal role. Go through your LinkedIn — ensuring you’ve changed your settings to ‘open to work’ — and reach out to people who might be able to connect you to opportunities, especially founders and VCs who often have large networks. You can also attend relevant industry events to make connections that way. 

Spruce up your CV 

Particularly in markets where there is an abundance of skilled, readily available talent, it’s important to build a strong career narrative. Update your CV and LinkedIn profile, making sure to highlight the achievements, projects and skills that make you stand out. Include tangible examples and add some data to back it up. It’s also a good idea to tailor your cover letter and CV to ensure they reflect your most relevant skills and experience for each role. Hiring managers should be aware of the recent tech layoffs and economic context, but you should still prepare how to talk about your redundancy in interviews. Think about why you were hired, how the role or business changed during you time there and the reasons why you were laid off. 

Upskill and stay relevant 

Got some free time on your hands? Seize the opportunity to work on upgrading your skills to enhance your competitiveness in the job market and learn a new tool. Investing time to acquire new professional qualifications not only makes you more attractive to potential employers, but it also boosts your confidence during interviews. 

Lean on Scene 

Utilising a recruitment firm like Scene that specialises in the fast-growth tech sector not only saves you time, but also increases your chances of finding your dream job at a mission-driven company. We take the time to get to know you, what you’re looking for and can help coach you for interviews to ensure you secure a meaningful role. What’s more, over 80% of our roles are exclusive to Scene, so you get access to some exciting startup jobs you won’t find anywhere else. 

Navigating startup layoffs can be an unsettling time, but with a practical approach and a positive attitude, any setback can be turned into an opportunity for personal and professional development.

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