Redefining a Layoff: From Setback to Strategic Reboot

The U.S. job market is experiencing a historic downturn.

According to the latest Bureau of Labor Statistics report, U.S. job creation in 2025 was the slowest in years, with unemployment steady around 4.4 % even as layoffs and job separations remained elevated.

Major employers such as Microsoft, Amazon, Alphabet, and Meta made thousands of layoffs in 2025. Over 100,000 employees were impacted by layoffs in the U.S. tech sector in 2025 alone, spanning startups to large enterprises (Source).

Layoffs have become daily headlines. And yet, when the uncertainty lands at your own doorstep, it feels anything but routine. A layoff is not just a career event—it can shake your identity, disrupt your rhythm, and stir deep fears.

But it doesn’t have to define your story.

While it’s human to feel blindsided or diminished, most layoffs are business decisions based on market conditions, not a referendum on your talent or leadership. With intention and support, this disruption can become a doorway to renewal. If you are in such a state, here is some food for thought.

Step One: Pause with Purpose

Before you jump into action, give yourself permission to rest. As I wrote in my piece on navigating uncertainty with resilience, resilience isn’t about endless productivity; it’s about spaciousness. Emotional recovery matters. Rest gives your nervous system and self-belief time to recalibrate.

Step Two: Reframe Your Narrative

Instead of asking, “How do I replace what I lost?”, ask, “What do I want to create next?” This simple but powerful shift, similar to how I helped leaders navigate career pivots in From Mid-Level to Senior Leadership, can transform grief into curiosity and agency.

Step Three: Set Realistic Expectations

Especially at the executive level, your next opportunity is likely a thoughtful match, not a fast rebound. It’s a time for strategic positioning, networking, and values-based exploration. That process can take months—and that’s okay.

Step Four: Engage with Purpose

Consider this your sandbox for experimenting. Volunteer on a nonprofit board. Join an industry roundtable. These aren’t distractions; they’re visibility builders and confidence restorers. Much like how leaders navigated ambiguity during the AI disruption by slowing down and focusing on quality and mindset over hype, you too can turn this phase into one of quiet but powerful reinvention.

Step Five: Rediscover Deferred Dreams

This could be the season to revisit your “someday” list. Maybe it’s that course, certification, or even writing project you shelved years ago. As I wrote in my 3Cs of Resilience, creativity is one of the pillars of resilient leadership. Start small and see where it leads.

Step Six: Ground Yourself Financially

If feasible, consult with a financial planner. Clarity in numbers often brings clarity in decisions. You’re not just job-seeking—you’re life-designing.

You can’t worry about your finances while showing up at your best in those networking and interview settings. Looking at the numbers directly and, if needed, adjusting your lifestyle would give you the peace of mind that helps tame the fear.

Recognize Your Body’s Wisdom

One senior leader from a FANG company shared that whenever he thought about job searching or interviews, he felt a strong physical reaction. His therapist helped him uncover that it was linked to trauma from the final few months in his last role. The recommendation? Go slow—pushing through would only retraumatize.

In another case, a woman who came for coaching appeared overly eager to prove herself. Her posture was rigid, her expression stern. A few minutes of mindful breathing helped her soften and regain her composure.

Recognizing your physical and emotional cues and treating them as valuable data is key. You’re not just looking for a job; you’re designing your next chapter with intention.

Final Thought: A Layoff Can Be a Catalyst

While a layoff may shake your identity, it can also be the very pause that helps you realign with your deeper values. It’s not just an end—it’s an opening. An opportunity to move forward more intentionally, more authentically, and more in tune with who you are now. When you meet this moment with self-compassion and curiosity, your next chapter can be not just successful—but meaningful.

---

Want help navigating this transition? Let’s connect to explore how executive coaching can help you move forward with clarity and purpose.