Jean Chatzky
Do one thing: Try really hard not to take it personally. While it will probably feel incredibly personal when you lose a job, many employment cuts come down to money, and personnel costs are a huge expense.
More than a million job losses were recorded in 2025
While there is never a good time to get let go from a job, being sacked near the end of the year can be especially painful. As 2025 winds down, the U.S. workforce continues to feel the sting of record employment cuts across a wide spectrum of industries.
Job Cut Data
From January through the end of October:
- Companies reported more than a million job cuts (1,099,500 to be precise) in the U.S.
- That’s up 65% from the 664,839 announced in the same time period of 2024, according to outplacement firm Challenger, Gray & Christmas (CGC).
The November report from CGC also noted that:
Year-to-date job cuts in 2025 are at the highest level since the pandemic in 2020, when 2.3 million reductions were reported.
Separate Loss from Individual Worth
Hardik Patel, founder and financial advisor with Trusted Path Wealth Management, says he tries to help clients understand that mass layoffs are often part of a company’s broader plan and are not a reflection of individual skill or worth. “Even highly skilled employees can be affected,” he explains. “So it’s critical not to let a layoff impact self-esteem.”
Strategies to Handle Job Cuts
Consider these tips and strategies to help handle a job cut in the last quarter of the year, or anytime.
Apply for Unemployment Benefits ASAP
Chris Diodato, CFA, CMT, CFP, founder and CCO of WELLth Financial Planning in Palm Beach Gardens, Florida, says layoffs are becoming increasingly prevalent, with a general shrinkage in hiring compounding the stress should someone lose their job.
Depending on where you live, processing times for unemployment benefits can take anywhere from a few days to several weeks, he says. That’s why you should apply immediately after the last day of work. There’s one exception: “If someone is receiving severance pay, they are typically ineligible for unemployment benefits. Those individuals should wait until severance pay ends.”
Assess Your Cash Reserves
Even with unemployment or a severance package, many people still face an overall income loss in the face of persistent expenses, notes Diodata. He advises clients to have six months of living expenses if they are unemployed and looking for work, even if it means selling off other investments in non-retirement brokerage accounts. And while the market was down in mid-November, stocks are still close to their all-time highs. “I would rather sell in that environment,” he explains, “than wait and potentially have to sell later in a larger market decline.”
Reassess Your Portfolio
In the same vein, it often makes sense to reduce the overall risk of a portfolio during a period of job loss in case additional funds are needed for living expenses, says Diodato, adding that making adjustments during a bull market is preferable to selling stocks while they’re down.
Check on Health Insurance Benefits
Samantha Mockford, CFP, AFC, a wealth advisor with Citrine Capital, suggests clients quickly determine from their termination paperwork how long they will be covered under group healthcare insurance and other benefits.
For those who want to keep the same health insurance, consider COBRA coverage. “It’s expensive,” Mockford says, and can run “up to 102% of the total (employer and employee) cost, but it could mean uninterrupted coverage.” You can elect it up to 60 days retroactively (perhaps wait until a medical event to opt in), and you can switch from COBRA to marketplace insurance during open enrollment, she says.
Spend Flexible Spending Accounts (FSAs)
Because you typically lose this account when you change employers – and the account value is mostly forfeited after the year ends – you have multiple reasons to spend these pre-tax dollar deferrals, Mockford says. For those with funds left in an FSA, remember to reimburse yourself for:
- Out-of-pocket copays and dental/medical bills
- Eyeglasses, contact lenses, contact lens solution
- Prescription medicines (Your pharmacy can usually provide a handy list)
- First aid supplies, sunscreen, pain relievers, and menstrual products
Line up References
Your former coworkers can be a big help when you start to look for a new job. Before you leave, make sure to ask for personal contact information from colleagues and managers who might be helpful as references in the future.
Try to Enjoy The Break From Work
Because hiring can also slow down near the end of the year, you may want to consider using the break from work to spend some quality time with loved ones, notes Patel, which can also help you to maintain your emotional well-being.
Make it (LinkedIn) Official
It’s important to cast the widest net possible when you are looking for a new job. So while you may not feel comfortable telling all of your social media followers about your employment situation, you should at least reach out to those in your network, Patel says, as connections can be one of the most effective paths to new opportunities. And with the click of a mouse, you can also let employers on LinkedIn know you are open to work.
With reporting by Casandra Andrews
