What Happens When Layoffs Loom? 10 Strategies for High Achievers Experiencing Career Volatility
Practical steps to help you prepare for a potential layoff (while maintaining financial stability and long-term perspective)
By Abigail McCloskey, CFP®, CLU®, and Cheryl Starr, CFP®, Affinity Wealth Management
What happens when layoffs loom at work?
Even the most accomplished professionals can experience unexpected changes when markets shift, industries consolidate, or organizations restructure. That’s why understanding how to prepare for a layoff is less about bracing for the worst, and more about creating the flexibility you and your family need to move through unexpected changes with confidence.
At Affinity Wealth, we view that preparation as a vital part of your long-term planning. Building a stronger emergency fund, reviewing stock options, and planning for healthcare transitions are just a few strategies designed to help keep more control in your hands.
When career volatility does arise, the question isn’t what might happen next—it’s how you’ve positioned yourself to respond.
How to Prepare for a Layoff: 10 Strategies for High Achievers Experiencing Career Volatility
You've built significant wealth, but too much of it is tied to one
1. Revisit Your Emergency Fund
An emergency fund may feel like the most basic of financial moves, but for high earners, the traditional three-to-six-month guideline often doesn’t go far enough. At senior levels, job searches can take longer, hiring cycles can be unpredictable, and lifestyle expenses tend to be more complex.
For many high achievers, building toward six months to a year of liquid coverage provides the breathing room to make thoughtful choices rather than rushed ones. It allows you to negotiate from strength, wait for the right fit, and continue meeting commitments without disruption.
2. Audit and Cut Discretionary Spending Now
When the possibility of layoffs arises, one of the most effective ways to regain control quickly is by tightening discretionary spending.
While this may seem like a simple adjustment, high achievers often have layered lifestyles with memberships, travel, or recurring expenses that add up more than expected. Taking the time to review and streamline those costs now can make a meaningful difference if volatility does arrive.
Here’s how:
- Focus on essentials: Identify the mandatory expenses your household truly needs to stay steady month to month.
- Trim the extras: Cancel unused subscriptions, memberships, and streaming services that don’t add real value.
- Delay big-ticket items: Press pause on renovations, luxury purchases, or large travel plans until your career feels more stable.
- Test-drive a leaner budget: Try living on less while your income is steady. It not only builds savings faster, but can also help you see what adjustments feel manageable if a transition occurs.
By scaling back in advance, you can proactively put yourself in a stronger position to navigate career changes without disrupting long-term goals.
3. Pay Down Consumer Debt
For many, consumer debt isn’t a matter of survival but of convenience—yet it can become an unnecessary liability when career volatility strikes. High-interest balances (especially on credit cards), can erode flexibility and compromise cash flow at the exact moment you want freedom to maneuver.
By accelerating repayment during periods of steady income, you’re effectively strengthening your balance sheet. Doing so reduces the liquid savings you need to keep on hand, preserves access to credit lines should you need them in the future, and converts money once lost to interest into a resource that can support your long-term stability.
4. Secure Credit Access While Employed
One of the most effective ways to prepare for volatility is to arrange credit while your income is steady. Banks are far more willing to extend favorable terms when employment is stable, making this the right time to establish a home equity line of credit (HELOC) or similar option.
You may never need to use it, but having credit in place serves as an extra layer of flexibility that can help you navigate transitions without being forced into rushed financial decisions.
5. Invest in Your Professional Currency
Your skills are arguably the most valuable capital you carry from one role to the next. While employment is stable, take advantage of company-paid training, certifications, or continuing education that expand your marketability. Keeping your resume and online presence current can also allow you to move quickly when opportunities or transitions arise.
Consider:
- Using employer-sponsored training before budgets tighten
- Pursuing certifications that set you apart in your field
- Refreshing your resume and LinkedIn profile regularly
Careers can change quickly, and companies ultimately make decisions in their own best interests. By continually building your professional currency, you can better position yourself to navigate volatility with confidence and move toward roles that align with your skills and ambitions.
6. Activate Your Professional Network
The most compelling roles are rarely advertised; they’re shared, recommended, or created for the right person at the right time. That’s why cultivating your professional network should be an ongoing practice, not just a reaction to uncertainty.
By staying engaged thoughtfully and consistently, you can position yourself to access opportunities that reflect your skills, reputation, and influence.
7. Master Your Stock Option Strategy
For many high achievers, stock options represent both opportunity and uncertainty. Knowing your vesting schedule inside and out is critical, since a layoff can change what you’re entitled to and when. In some cases, it may be possible to negotiate for unvested shares as part of a severance package, value that could otherwise be left on the table.
It’s also important to think about timing and concentration. Exercising options without a plan can create unnecessary strain, while relying too heavily on your employer’s stock can leave both your career and portfolio tied to the same risks. Approaching these choices thoughtfully helps protect the wealth you’ve built and gives you greater flexibility in whatever comes next.
8. Optimize Your Severance Negotiation
A severance package can be more than a bridge; it can be a strategic tool if approached carefully. Too often, professionals accept the first offer without review, leaving valuable benefits on the table. Taking the time to evaluate the details allows you to negotiate for provisions that matter.
Key considerations include:
Requesting continued healthcare coverage for you and your family
Asking for outplacement services to support your next step
Exploring whether deferred compensation can be paid out over time to reduce tax strain
By treating severance as part of your broader financial strategy, you can create space to move forward on your own terms rather than under the pressure of a quick decision.
9. Plan Your Healthcare Coverage Transition
When a career transition happens, healthcare is often one of the first questions that comes up. The options can feel overwhelming, but the right choice usually comes down to a careful balance of cost, coverage, and convenience for your family.
Together, we’ll look at COBRA, marketplace plans, and the possibility of joining a spouse’s coverage. We’ll weigh the numbers but also factor in practical considerations like prescription needs or access to your current doctors.
In many cases, one path stands out clearly once everything is on the table. The goal is to help you make a decision that supports both your health and your financial stability, so you can focus on what comes next with confidence.
10. Protect Your Mental and Family Health
For high achievers, job loss can feel like an identity crisis—especially if you've tied your self-worth to your title or income. But it’s important to remember that a layoff is a business decision, not a judgment on your value.
Additionally, keep in mind that job searches can stretch months. Keep routines, stay connected to your network, and don't isolate. The professionals who bounce back fastest are usually those who treat the transition as a strategic pause, not a personal failure. And if you need additional perspective, lean on your network or a professional resource (like your Affinity team!).
Approaching the transition with openness and support often makes it far easier to focus on the opportunities ahead.
Ready to Turn Uncertainty into Opportunity?
Career volatility is never easy, but it doesn’t have to leave you feeling unprepared. Proactive planning can help give you options, protect what you’ve built, and allow you to approach change from a position of strength. By taking thoughtful steps now (both financial and personal), you can create the flexibility needed to move toward your long-term goals.
If recent headlines or changes in your industry have you thinking about these strategies, let’s talk them through together. We can review how your current plan addresses career volatility, so you feel steady no matter what comes next.
If you’re not yet working with us and want a partner to help you prepare for both opportunities and uncertainties, we invite you to start the conversation. We’ll take the time to understand your goals, your values, and your unique circumstances, and help you put a plan in place designed to support you through every stage of your career. Click here to learn about the Connect Meeting.
If you’re not yet working with us and want a partner to help you prepare for both opportunities and uncertainties, we invite you to start the conversation. We’ll take the time to understand your goals, your values, and your unique circumstances, and help you put a plan in place designed to support you through every stage of your career. Click here to learn about the Connect Meeting.
Key Takeaways:
How much emergency fund do I really need? For high earners, 6-12 months is often more realistic than the standard 3-6 months.
What's actually in my control during career volatility? Your financial preparation, professional development, network strength, and response strategy.
What can Affinity help with during career transitions? Tax strategy, severance optimization, healthcare planning, and keeping your long-term goals on track.