There is no way to sugarcoat it other than to say that 2024 was a horrible period for layoffs, with some surveys reporting that over 16 million Americans were laid off last year. I wish I could wave my magic wand and make layoffs a thing of the past, but initial signs indicate that we should brace for more job losses.
A recent survey of managers found that they are anticipating having to do more layoffs in 2025, albeit not to the same extent as in 2024.
If you are fearful of getting laid off, take stock of your situation and do what you can to secure your job. In general, employers will retain the employees who bring the most value. So if you want to be one of the lucky ones to keep your job, do what it takes to make yourself an indispensable employee. This might mean taking on an important project, expanding your skill sets or being assertive about what you bring to the company.
Sadly, layoffs can happen to the best employees in any sector. As many as 40% of Americans will experience at least one layoff in their lifetime. It is very normal for people to have thoughts like, “Why me?” or “What did I do wrong?” You might feel powerless because you have been let go without having any say in the decision. However, there are many things that you still have control over.
One of these things is to negotiate your severance.
It might be a revelation that people can negotiate severance. Many simply sign on the dotted line of their severance packet without considering the fact that they can, and probably should, negotiate the terms. You are not even legally required to sign your severance package!
First and foremost, do NOT sign immediately. There is nothing in the law that says you have to sign your severance right away. Take your time to read the entire package multiple times, slowly and carefully, noting any phrases or terms that you do not understand. If you have questions, email your HR rep so you can get answers in writing.
Before you start negotiating, you need to do some research in order to maximize your chances of having the best outcomes. You will likely need the following documents in order: your employment agreement that you signed when you first came on board, your performance evaluations, your company handbook or documents that outline the company policy, your layoff notice, and details about your severance package.
If you are missing any of these documents, you can ask HR for a copy. Read through them to see if there are any discrepancies between your severance package and the terms of your agreement.
Research what similar companies are offering in their severance packages. If you have friends who work in HR in other companies, ask them! Quite a few people have posted their severance packages online. Take note of these as points of comparison.
Next, reflect on your contributions in your role, the length of your employment and your performance in the company. Ask yourself: In what specific ways has the company benefited as a result of your labor? This piece is useful as justification for more severance.
Get clear about your goals for negotiating. Of course you would want more money, but consider if you could benefit from extended healthcare coverage, career coaching, training reimbursement and continued access to employee perks.
There is more to a cash handout in a severance packet. Packages vary, but commonly they include things like health coverage, job coaching, retirement benefits, stock options and payment that you have already earned for sick leave or vacation.
Another area to think about is if you are asked to sign a noncompete or confidentiality agreement. How will this affect your job search? You should also consider if you want your severance in one lump sum—this might affect your taxes—or in monthly payments.
Sometimes, employers will offer an amount to cover COBRA reimbursement—a way for former employees to continue under the employer’s health plan for a specified period. If you are not interested in COBRA, you could ask for the employer’s portion of the reimbursement to be cashed out to you.
Now it’s time to put together a proposal with a reasonable counter-offer backed up by your research, your contributions and comps. You may feel like asking for the moon and taking your employer to the cleaners since you have nothing to lose, but be clear about what your priorities are.
A note about non-disparagement agreements that are popular in some Silicon Valley companies: These are often one-sided. They do not benefit you; they are solely for the company. You could negotiate for having the non-disparagement agreement mutual. This can be particularly important if you are leaving on a sour note and you fear retaliation. In certain cases, it may be helpful to consult with an employment attorney.
There are two instances when you can and should negotiate at work. One is before you get the job at the salary negotiation phase, the other is when you are asked to leave. In my view, it is always worth a shot, especially in the layoff scenario when you have nothing to lose. Even if you don’t get what you asked for, the research you did will be invaluable in your next salary negotiation.
Anne Chan is a career consultant and licensed psychotherapist. She specializes in helping people find happiness in their careers and lives. You can reach her at an*********@gm***.com © Anne Chan, 2025
