A tech layoff is often framed as a career disruption. In reality, it is just as much a financial inflection point.
While layoffs occur across industries, technology roles tend to involve a level of financial complexity that doesn’t unwind neatly. Equity compensation, compressed option exercise windows, severance structures, benefit elections, and tax consequences can all converge within a short period. The result is not simply a loss of income, but a dense series of decisions that arrive before there is clarity about what comes next.
One of the most common misconceptions is that the biggest risk after a layoff is making the wrong decision. In practice, the larger risk is misunderstanding when decisions must be made.
Some choices carry hard deadlines. Miss them, and the opportunity disappears entirely. Others benefit from patience and scenario analysis. The challenge is that these timelines often overlap, making it difficult to distinguish urgency from importance.
This dynamic is especially pronounced in the tech sector, where compensation frequently includes restricted stock, options, and employee stock purchase plans. When employment ends, vesting may stop immediately, option exercise windows may shorten to a matter of weeks, and tax exposure can change overnight. At the same time, severance payments and benefit elections introduce additional layers of timing risk.
Over time, we have observed a consistent pattern in how these decisions unfold. Early actions shape later flexibility. Rushed choices can limit long-term options, while thoughtful sequencing often preserves both capital and opportunity.
To help bring structure to an otherwise overwhelming process, we created a Tech Layoff Decision Timeline outlining common financial decision windows after a tech layoff. It organizes decisions into immediate, short-term, and medium-term phases, allowing individuals to prioritize what truly requires attention.
For those navigating layoffs with significant equity exposure or complex tax considerations, this kind of clarity can be invaluable. Some individuals work through these decisions independently. Others choose to validate assumptions with specialists before deadlines pass. Either approach benefits from a clear understanding of timing and tradeoffs.
For a deeper exploration of why tech layoffs create unique financial challenges, we also published a whitepaper on the financial reality of tech layoffs and how timing influences outcomes, entitled “When Timing Matters Most.”