What to Do If You Suspect a Layoff This Holiday Season

The Holiday Job Market: A Time of Uncertainty

As the holiday season approaches, many people are focused on festive cheer and family gatherings. However, for some, the holidays can bring an unexpected twist—finding a pink slip in their stocking. December and January are typically the months when companies make the most layoffs, often as part of cost-cutting measures to reset expenses at the start of the new year. While this isn’t necessarily about being Scroogey, it’s a reality that makes losing a job during the holidays especially difficult.

In 2024, U.S. businesses have eliminated nearly 1.2 million positions through November, according to Challenger, Gray & Christmas, which advises companies on staff reductions and helps employees find new work. The 2025 layoff tally is 54% higher than in the first 11 months of last year, a level not seen since the last recession. This trend highlights the importance of staying alert and prepared for potential job changes.

Recognizing Warning Signs

If you’ve been put on a performance-improvement plan or didn’t receive your usual year-end bonus, it might be time to pay attention. Similarly, if your company is struggling financially or has reduced the number of employees needed due to automation and artificial intelligence, these could be signs of trouble. Some signals are obvious, while others may be more subtle.

Amanda Schmidt, who was laid off from a marketing job at a tech company in early December, noticed several warning signs. Her team had been refining an AI tool set to launch in January, which felt like training a replacement. She also observed layoffs in the tech sector and her company's push for a return-to-office policy, which can sometimes be a tactic to reduce headcount. Despite these signs, she chose to stay until the end, ultimately receiving three months’ severance and a professional-development stipend.

Trusting Your Instincts

Other warning signs can be easy to miss unless you’re paying close attention. Megan Struthers, who worked at a recruiting firm, noticed something was off when her six-year anniversary passed without any recognition. Previously, such milestones were celebrated with team-wide emails. Although there were plausible explanations, she asked around and found that others felt the same way.

Struthers advises being attentive and proactive. She kept a digital folder labeled “Yay” where she recorded praise from clients and goals she surpassed. This helped her with her résumé and provided a confidence boost. She also made sure to back up all personal-account information stored on her work laptop, as losing access to financial accounts can be a major hassle.

Preparing for the Unexpected

One key to bracing for a potential layoff is overcoming the paralysis that often comes with uncertainty. Nadia Vanderhall, a financial planner, compares it to stepping on the bathroom scale and knowing you need to work out but putting it off. She recommends starting with small savings, such as $500, to bridge the gap between jobs. Unemployment benefits can take time to kick in, so even modest savings can help.

Vanderhall also suggests looking into creditors’ hardship policies. Knowing if you qualify for forbearance on car payments or student loans can provide peace of mind. Severance agreements are sometimes negotiable, so consider what your priorities would be. For example, if your partner has a stable job but you carry the household’s health insurance, you might be willing to take a smaller cash payout in exchange for extended Cobra eligibility.

Hiring a lawyer to review a severance agreement can also ensure you get the most benefits and remain eligible for things like unemployment.

Conclusion

While planning for a potential layoff can feel like doomsaying, going through the uncomfortable exercise of preparing for the worst can make things a little less painful if the real thing happens. Staying informed, trusting your instincts, and making a plan are essential steps in navigating the uncertain job market.