Layoffs typically happen because a company needs to reduce its staff, reduce costs, relocate, or go through a merger and an acquisition. An economic downturn may also lead companies to carry out some job cuts.

How does this affect employees? Those who are already experiencing higher costs of living may lose their jobs and financial stability.

Moreover, news of a layoff can be distressing for employees. But sometimes, there are employees who have seen it coming, so they come up with a backup plan.

Read more: 6 signs you're at risk of a layoff

Financial planner Noah Damsky of Marina Wealth Advisors suggests that it’s important to have a strategy and a plan. “If you don't have a strategy, use this as a time to figure it out,” said Damsky.

What to do after you’ve been laid off

The difference between getting laid off and getting fired is that the latter is due to a bad performance review. So if you’ve been laid off recently, know that it isn’t your fault. Take this time to empower yourself and take charge of your life. 

Assess the risk.

The probability of being laid off is different for different industries. Marc Lescarret of Marc Alan Wealth Management says that you need to evaluate how much your role will be affected by the recession. It is less likely for a professor with tenure to lose his job, while someone from a tech startup, who might be making a lot more money, might have more to lose. Consider also your seniority, years of experience, and the importance of your role.

Improve your finances.

It is recommended that you perform an overall financial health checkup. Take a closer look at the amount of money you take in every month and compare it with how much you’re spending. After that, see where limits can be made to save up.

Read more: Why offboarding is as vital as onboarding

See your doctor and stay healthy.

Once you lose your job, you might lose your health insurance. Because of this, experts suggest that you get up to date on medical checkups. Bloomberg also recommends programs like Cobra, which can help bridge the gap in insurance if an employee faces a layoff.

Make solid connections with other people.

The most important thing to do is to make friends with people from your industry and from other industries. It’s even more important now that you will be needing a new job. Talk to people, whether these are executive friends you have or friends who have had lower positions than you and ask them about industry trends and hiring trends at their companies. Update your resume as well as your LinkedIn page.

Finding your footing after a layoff may seem like a devastating period in your life, but it doesn’t have to be. Use it as a chance for a career change or taking a sabbatical. More importantly, focus on what you really want out of your career.