For some professionals in tech, a layoff isn’t just about losing a paycheck — it’s about facing uncertainty across every corner of your financial life. 

You’ve built your career, your lifestyle, and your goals around steady income, ongoing vesting schedules, and company growth. When that’s suddenly interrupted, it can feel like the ground is shifting beneath you. 

At companies like Amazon, where thousands of employees were recently laid off, many people aren’t just asking “What’s next for my career?” — they’re asking, “What happens to my equity?” 

 

The Ripple Effect of a Layoff

When you leave a company, planned or not, the financial impact extends far beyond your paycheck: 

  • Equity compensation: Unvested RSUs or stock options may be forfeited or subject to short exercise windows. 
  • Cash flow: Severance packages, bonuses, and benefits all come with unique tax implications. 
  • Retirement and insurance benefits: Contributions stop, coverage changes, and decisions need to be made quickly. 
  • Goals and priorities: Plans tied to future income or vesting — from buying a home to funding education — may suddenly need to be reevaluated. 

For executives and tech professionals, these layers of complexity can feel paralyzing — especially when you combine it with the emotional weight of uncertainty. 

 

A Moment for Clarity and Strategy

The truth is, a layoff can also create a critical opportunity to step back, get organized, and realign your financial life. No one is saying this is a good thing, right? But looking at the facts and finding a silver lining can be part of keeping a healthy mental attitude as you navigate a layoff. 

 This is the time to ask: 

  • How long can I sustain my current lifestyle with existing liquidity? 
  • What’s the best strategy for my vested (and soon-to-expire) equity? 
  • How do taxes factor into severance, stock, and next steps? 

For some it also may lead to questions like this: 

  • What do I truly want this next chapter to look like? 
  • Is now a good time to retire? 
  • Do I want to change course and pursue other goals? 

Taking the time to answer these questions with a clear head and trusted guidance can make the difference between reaction and long-term success.  


Your Next Step: A Practical Framework

To help you take that first step, we created a 7-Step Layoff Response Checklist — a concise guide designed specifically for tech professionals navigating layoffs with equity compensation. 

It’s not just about managing a job transition — it’s about protecting your wealth, reducing stress, and setting the stage for what comes next. Moments like this can create analysis paralysis, but our checklist can help you take action of what you can control.  

 

arrow_small (1)  Download Checklist

 

If you have been contemplating finding a financial advisor who understands your unique set of equity compensation perks and challenges, then maybe it’s the perfect time to schedule a complimentary consultation to talk through your specific equity and cash flow considerations. 

At Schmidt Financial Management, we specialize in helping technology professionals and executives manage equity transitions — from IPOs to layoffs and everything in between.

If your employment just changed, this is the moment to pause, plan, and make your next move with clarity and confidence. 

Disclaimer: Schmidt Financial Management, Inc., (SFM) is a registered investment adviser. This information is only intended for clients and interested investors residing in jurisdictions in which SFM is qualified to provide investment advisory services. Blog posts do not intend to provide personalized investment advice through the various broadcasts and does not represent that the securities, services, or strategies discussed are suitable for any investor. Investors should consult with their financial advisors before making any investment decisions. The S&P 500 Index is a market-value weighted index representing the 500 largest U.S. public companies. The Bloomberg US Aggregate Bond Index measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. This video is for informational purposes only and does not constitute a recommendation to buy or sell cryptocurrency. This content specifically addresses restricted stock units (RSUs), which can be complex financial instruments. The information presented here may not be applicable to your individual situation. We strongly recommend consulting with a qualified financial advisor, tax professional, or legal counsel before making any decisions regarding RSUs or other financial matters. Equity 411, presented by Schmidt Financial Management, Inc. (SFM) does not guarantee the accuracy, completeness, or timeliness of the information provided. We are not liable for any losses or damages arising from the use of this information. Investing in securities, including RSUs, involves risks and may not be suitable for all individuals.