job-loss-transition

name	job-loss-transition
description	Produces structured transition plans for immediate financial stabilization after job loss, covering 30-day action plans, benefits continuation checklists (COBRA timeline, unemployment filing), expense reduction frameworks, and job search reactivation sequences. Focuses on the immediate practical steps to stabilize finances and relaunch a career search within the first 30-90 days. Use when the user asks about what to do after losing a job, managing finances during unemployment, or organizing a job loss recovery plan. Do NOT use for long-term career coaching (use career-development skills), detailed job search strategy (use job search skills), or mental health treatment for job loss depression.
license	Apache-2.0
metadata	{"author":"foundry-skills","version":"1.0.0","tags":"relationships personal-finance career","category":"family-relationships","subcategory":"relationships-communication","depends":"","disclaimer":"none","difficulty":"intermediate"}

Job Loss Transition Plan

Losing a job -- whether through layoff, termination, or company closure -- creates immediate financial and emotional disruption. The instinct is often to either panic or freeze. This skill provides a structured 30-day action plan that addresses the most urgent practical needs first: benefits, finances, and stabilization. It is not career coaching or job search strategy (those skills exist elsewhere). It is the immediate triage that gives you a stable platform from which to plan your next move. If the emotional impact of job loss is significant, a therapist or career transition counselor can provide support alongside these practical steps.

When to Use

Use this skill when:

• User just lost their job and needs to know what to do first
• User asks about managing finances after a layoff
• User needs a checklist for benefits continuation after job loss
• User wants to organize their first 30 days after losing a job
• User asks about unemployment benefits, COBRA, or severance

Do NOT use this skill when:

• User wants detailed job search strategy (use career-development job search skills)
• User wants resume or interview preparation help (use career-development skills)
• User asks about long-term career planning or career changes (use career-development skills)
• User is experiencing severe depression or crisis related to job loss (crisis services or therapist needed)
• User asks about employment law or wrongful termination (attorney needed)

Process

1. Handle exit day logistics. Before leaving the workplace, gather:

   Documents and Information to Collect:

   • Written termination or layoff notice (request one if not provided)
   • Severance agreement (do NOT sign immediately -- see step below)
   • Final paycheck details: last pay date, unused vacation/PTO payout, commission or bonus owed
   • COBRA notification (health insurance continuation information)
   • 401k or retirement account information and provider contact
   • Contact information for HR (for future benefits questions and employment verification)
   • Copy of your performance reviews (if accessible and positive)
   • Personal files, contacts, and work samples (only what is legitimately yours)
   • Information about non-compete, non-solicitation, or NDA agreements you signed

   Severance Agreement:

   • Do NOT sign a severance agreement on the spot
   • You typically have 21 days to review (40 days if over age 40 in group layoffs, as required by law in many jurisdictions)
   • Review the agreement carefully: severance amount, benefits continuation, non-compete terms, non-disparagement clause, waiver of legal claims
   • Consider consulting an employment attorney before signing, especially if the severance is large or includes restrictive clauses
   • Severance is often negotiable -- the initial offer is not always the final offer

2. Stabilize finances (Days 1-7). This is the highest priority in the first week:

   Assess Current Financial Position:

   Category	Amount
   Emergency fund balance	$_______
   Checking account balance	$_______
   Savings accounts	$_______
   Last paycheck (including PTO payout)	$_______
   Severance (if offered)

Output Format

## Job Loss Transition Plan

### Financial Snapshot
| Item | Amount |
|------|--------|
| Available cash and savings | $X,XXX |
| Last paycheck + PTO payout | $X,XXX |
| Severance (if any) | $X,XXX |
| Monthly essential expenses | $X,XXX |
| **Runway (months)** | X months |

### Health Insurance Decision
- **Option chosen:** [COBRA / Marketplace / Spouse's plan / Medicaid]
- **Monthly cost:** $XXX
- **Enrollment deadline:** [Date]

### Unemployment Benefits
- **Filed:** [Yes/No]
- **Estimated weekly benefit:** $XXX
- **Duration:** X weeks
- **Claim reporting schedule:** [Weekly/Biweekly]

### 30-Day Action Plan

**Week 1:**
- [ ] [Task]

**Week 2:**
- [ ] [Task]

**Week 3:**
- [ ] [Task]

**Week 4:**
- [ ] [Task]

### Expense Reduction Plan
| Expense | Before | After | Monthly Savings |
|---------|--------|-------|----------------|
| [Item] | $XXX | $XXX | $XX |
| **Total monthly savings** | | | $XXX |

### Benefits Checklist
- [ ] Health insurance: [Status]
- [ ] 401k rollover: [Status]
- [ ] Unemployment: [Status]
- [ ] Severance review: [Status]
- [ ] Life insurance portability: [Status]

### Job Search Reactivation (Week 4+)
- Resume updated: [Yes/No]
- Network activated: [Yes/No]
- Daily schedule established: [Yes/No]

Rules

1. NEVER provide employment law advice or guidance on wrongful termination claims -- direct to an employment attorney
2. NEVER advise cashing out a 401k -- the tax and penalty hit is severe (typically 30-40% loss); roll over to an IRA or leave in the plan
3. ALWAYS file for unemployment benefits immediately -- even if the user thinks they may not qualify, filing costs nothing and the appeal process exists for a reason
4. ALWAYS address health insurance within the first 14 days -- a gap in coverage during a health event can be financially devastating
5. Include the severance review recommendation in every plan -- signing without review can waive valuable rights
6. Present the financial position as a concrete runway calculation (months of cash at reduced expenses) -- this replaces panic with a number to work with
7. Include expense reduction with specific cut amounts, not vague suggestions to "spend less"
8. ALWAYS separate the financial stabilization phase (weeks 1-4) from the job search phase (week 4+) -- trying to job search while financially panicking is ineffective
9. Include the daily routine and structure recommendation -- loss of work structure is a major contributor to emotional decline during unemployment
10. NEVER minimize the emotional impact of job loss -- it is consistently ranked among life's most stressful events alongside divorce and death of a loved one

Edge Cases

• Sole income earner with dependents: When the person who lost their job is the only income source, the urgency is higher. Immediately: file for unemployment, apply for any applicable assistance programs (SNAP, utility assistance, Medicaid), contact mortgage/rent provider about hardship options, and reduce expenses to absolute essentials. Calculate exact runway in days, not months. If the partner can take on temporary or part-time work, evaluate that option. This is a crisis management situation, not a career planning exercise.

• Job loss with significant debt: When substantial debt exists alongside job loss, the priority order is: housing, food, utilities, health insurance, then debt. Contact creditors immediately about hardship programs (most have them but do not advertise them). Federal student loans have income-driven repayment plans that adjust to zero income. Credit cards can often negotiate temporary interest rate reductions or payment deferrals. Do NOT take on new debt (payday loans, high-interest credit) to make payments on existing debt -- this accelerates the problem.

• Executive or high-earner job loss: The financial cushion may be larger but the emotional and identity impact can be equally severe. Additional considerations: severance negotiation may have more room (retain an attorney), non-compete agreements may limit job search options (review carefully before signing), executive job searches take longer (6-12 months average vs. 3-6 months), and the ego and identity impact of a high-profile job loss may benefit from executive coaching or therapy.

• Job loss due to company closure: When the entire company shuts down, additional complications arise: WARN Act protections (60-day notice required for large layoffs in many jurisdictions), potential delays in final paycheck, unpaid vacation payout may require a claim, group health insurance terminates for everyone, and reference checks must come from former colleagues rather than the company. File for unemployment immediately and document all unpaid wages.

• Gig worker or contractor "loss": When a major client or platform drops a freelancer, the financial impact is similar but the support structure is different: no unemployment benefits in most cases (though some jurisdictions have expanded eligibility), no COBRA (no employer plan existed), and no severance. Focus on: expense reduction, marketplace health insurance, activating the client pipeline immediately, and considering temporary employment while rebuilding freelance income. If the contractor was misclassified (treated as an employee but paid as a contractor), consult an employment attorney.

Example

Input: "I just got laid off today. I'm the main breadwinner, my wife works part-time, and we have two kids. I have a mortgage and about $8,000 in savings. What do I do?"

Output:

Job Loss Transition Plan

Financial Snapshot

Item	Amount	Notes
Savings	$8,000	Current emergency fund
Last paycheck + PTO payout	$_______	Confirm with HR: amount and date
Severance	$_______	Did they offer? Do NOT sign yet
Wife's part-time income	$_______ /month	Current take-home
Total available	$8,000 + pending amounts
Essential monthly expenses (estimate below)	~$_______	Calculate today
Estimated runway	_______ months	Savings + income / reduced expenses

Immediate Priority Actions (Today and Tomorrow)

1. Do NOT sign a severance agreement today. Take it home. You have at least 21 days to review. If the offer exists, it may be negotiable. Consider having an employment attorney review it before signing.

2. Confirm your final paycheck details with HR:

   • Last pay date
   • Unused PTO/vacation payout amount
   • When COBRA paperwork will arrive
   • 401k provider and account information
   • How long your employee assistance program (EAP) continues

3. File for unemployment benefits today or tomorrow. Do not wait.

   • File with the state where you worked
   • Have ready: SSN, employment dates, employer name and address, reason for layoff
   • Estimated weekly benefit: varies by state and your prior earnings
   • Benefits typically begin after a 1-week waiting period

4. Talk to your wife tonight. Be honest about the numbers:

   • "Here is what we have in savings, here is what the last paycheck will be, here is what I am doing about it"
   • If she can increase her part-time hours temporarily, discuss that option
   • This is a partnership conversation, not a solo panic

Health Insurance (Decide Within 14 Days)

Option	Estimated Monthly Cost	Coverage	Action
COBRA	$_______ (get exact number from COBRA notice)	Same as employer plan	Elect within 60 days
Marketplace plan	$_______ (check with projected reduced income -- subsidies may apply)	Varies	Apply within 60 days of losing coverage
Wife's employer plan	$_______ (check if her employer offers family coverage)	Varies	Job loss is a qualifying event for special enrollment

Recommended: Compare all three options before deciding. With your reduced income, marketplace subsidies may make a marketplace plan significantly cheaper than COBRA. Your wife's employer plan may be the most cost-effective if family coverage is available.

30-Day Stabilization Plan

Week 1: Financial Triage

• File for unemployment (today)
• Calculate exact monthly essential expenses (use the table below)
• Cancel non-essential subscriptions (streaming, gym, apps): estimated savings $50-150/month
• Contact mortgage company: ask about hardship forbearance or modification options (do this BEFORE you miss a payment)
• Reduce grocery budget (plan meals, reduce eating out to near-zero): estimated savings $200-400/month
• Review and compare health insurance options

Week 2: Secure Benefits

• Enroll in health insurance (COBRA, marketplace, or wife's plan)
• Do NOT cash out your 401k -- roll it to an IRA or leave it in the plan
• Check if your EAP provides free therapy sessions (use them)
• Set up a strict monthly budget for unemployment period:

Expense	Current	Reduced To	Monthly Savings
Dining out	$_______	$0-50	$_______
Subscriptions	$_______	$0-20	$_______
Groceries	$_______	$_______	$_______
Entertainment	$_______	$0-25	$_______
Total monthly savings			$_______

Week 3: Stabilize

• Unemployment benefit confirmed and first payment scheduled
• Budget operating at reduced level
• All essential bills current or on hardship arrangements
• Severance agreement reviewed (with attorney if valuable)

Week 4: Shift to Job Search

• Financial stabilization complete -- you know your monthly runway
• Update your resume
• Activate your network: send messages to contacts letting them know you are looking
• Set a daily job search schedule: 3-4 hours per day, 5 days per week, same time each day
• For detailed job search strategy, use the career-development job search skills

Daily Structure (Start Week 2)

Time	Activity
7:00 AM	Wake up, get dressed, breakfast with family
8:00-8:30 AM	Exercise or walk (free -- park, neighborhood, bodyweight workout)
9:00 AM-12:00 PM	Job search: applications, networking, skill development
12:00-1:00 PM	Lunch, family time
1:00-3:00 PM	Job search: follow-ups, phone calls, research
3:00 PM+	Family time, household tasks, personal projects

What to Tell the Kids

If your children notice you are home: "I am looking for a new job. This is something that happens to lots of people and our family is going to be okay. I am spending my days working on finding the right next job." Keep it calm, brief, and reassuring. Do not share financial anxiety with the children.