Fired or Laid Off? How to Cope with the Emotional Fallout
Posted by Improving Lives Counseling Services, Inc. | Mental Health, Uncategorized
WORKLESS
I miss your morning greetings
rewards throughout my day
the challenges your scripts impose
the benefits you paid
Bestowing incentives for bonus
rewarding each year with a raise
enriching each hour – perfecting each task
applauding my genius through praise
All I could be you challenged
you broadened my outlook my views
provided food, clothing, and shelter
my dreams and ambitions infused
In this world of global recession
at the realm of depression and gloom
my career, my job, my future all gone
and I miss it.
From the book “LISTEN”
by Shirley Howard Hall
“This too shall pass,” “The only thing we have to fear is fear itself,” and “Tough times never last, but tough people do” are all great quotes, but they might mean nothing to someone who has lost a job due to a layoff. Newsweek reports, between January 20, 2025, and April 11, 2025, more than 200,000 federal employees have experienced job loss – and as a result businesses in the surrounding private sector have laid off workers, with two to three jobs in Washington D.C. no longer existing. In 2025, a total of over 172,012 private sector employees were laid off across 1,220 companies in the United States. This includes over 141,076 tech jobs from 468 companies.”
Regardless of what part of the country a person is in, where they worked, or how long they had been on their job, a layoff can lead to fear, anxiety and uncertainty – particularly for employees with 20+ years of longevity, and those over 55, or close to retirement. Even the prediction or rumor of a layoff can lead to a reduction in performance, extreme anxiety, ongoing stress, and depression. Recent research has revealed that being without work is associated with more than a twofold increase in suicide risk. In fact, people who are unemployed are over 16 times more likely to die by suicide compared to those who are employed. This risk is especially pronounced among individuals who have been jobless for more than six months.
Unless someone is already in therapy, individuals who are fired or laid off are unlikely to seek counseling or therapy, even when they recognize symptoms of uncontrolled anxiety and chronic stress. Improving Lives Counseling Services’ diverse team of highly trained counselors, therapists, and clinicians offers guidance on the practical challenges of job loss, and a healthier more adaptive ways of coping with its emotional impact.
LAID-OFF VERSES FIRED
Although both situations involve job loss, the psychological and physiological effects are quite different. While both can include a loss of income and the potential loss of basic needs such as food, shelter, and clothing, layoffs often occur in groups with fellow coworkers. In contrast, being fired leaves the individual isolated and alone.
Fired Workers
Being fired is much more than the loss of a job; it can feel like a personal blow that rattles an individual’s sense of self. The initial shock and confusion can leave one disoriented and unsure – their sense of security, and self-worth shattered; their core beliefs, values, and principles questioned. The emotional weight of being fired is often compounded by the financial strain that comes with job loss – deepening anxiety and stress. The pressure of how to cover bills or provide for loved ones can make the most basic tasks feel overwhelming, affecting mental health and diminishing focus during the search for new opportunities.
For workers whose identity was deeply tied to their work, the loss is felt even more acutely. It’s not just about losing a paycheck, it’s about losing a part of themselves which can trigger feelings of deep sadness, hopelessness, and loss. Anger and resentment may emerge, especially if the firing feels unfair or sudden. Many fear how family and friends might perceive them, pulling away, unsure of what to say or how to face them. Being fired can shake someone to their core, not only professionally but emotionally, leaving them with the difficult task of rebuilding both their career and their self-confidence.
Laid-off Workers
Whether it is a pending layoff, a scheduled one known in advance, or the sudden shock of finding a sign on a locked office door, the underlying emotion is often the same: fear. Recognizing that you are not alone can offer some comfort, however, such shared experiences during difficult times can create a sense of competition, creating emotional intricacy once the full impact of the situation becomes clear. Layoff can feel like a wave crashing unexpectedly, even when there have been signs of organizational restructuring, downsizing, or budget cuts. It is not just the loss of a job (especially for the specialist and/or high performer) it is the abrupt disruption of personal identity and stability.
For many, work represents more than a paycheck. It provides a sense of pride, purpose, and structure. When a layoff occurs, even if it is clearly not the result of personal failure, it can feel deeply personal. The emotional response can be complex, blending shock, frustration, anxiety, uncertainty, and feelings of isolation. It is natural to: Why was I selected? What comes next?
The psychological toll of a layoff can lead to feelings of grief, loss of self-worth, heightened stress, anxiety, depression, or burnout. The impact can disrupt sleep, increase fatigue, and contribute to physical symptoms such as headaches, muscle tension, and digestive issues. The loss of a regular routine or social interactions tied to the workplace can compound these effects, leaving individuals feeling hopeless, isolated, or adrift.
For older workers nearing retirement, a layoff can be especially devastating. Many may have been planning to retire within a few years, only to find themselves cut off from a steady income, healthcare benefits, and retirement contributions. A time of preparation and winding down can quickly become a period of uncertainty, financial strain, and emotional upheaval. Re-entering the workforce at this stage is often challenging, as older individuals may face ageism, a rapidly evolving job market, and fewer employment opportunities. These obstacles can force a delay in retirement, require a reevaluation of long-held financial plans, and have a profound physical and psychological impact.
In addition to the emotional and financial toll, the physical effects of being laid off at this stage of life can be significant, often compounding existing age-related health concerns. The stress of sudden job loss can elevate cortisol levels, which, in older adults, is particularly harmful, contributing to high blood pressure, weakened immune function, cardiovascular issues, and the exacerbation of chronic conditions such as diabetes or arthritis. Anxiety over finances and retirement prospects may lead to sleep disturbances, which, over time, can result in fatigue, cognitive decline, and worsening of preexisting conditions. Isolation, loneliness, and hopelessness may further weaken muscles and bones, aggravate joint conditions, and increase the risk of heart disease and metabolic disorders. The emotional stress can compromise overall health.
Depression, though primarily a mental health condition, often presents physically in seniors, with symptoms such as persistent fatigue, unexplained aches, slowed movement, and neglect of self-care. For seniors, the experience of being laid off is deeply interconnected with emotional, financial, and physical health. Without adequate support, this transition can accelerate health decline and diminish quality of life.
Effect on Family
Coupled with the personal challenges of a layoff is the emotional difficulty of informing spouses, partners, children, and extended family. Their responses can vary widely, from supportive to indifferent, from compassionate to distant, and these reactions can add to the emotional strain already felt by the laid-off individual. A layoff often introduces immediate financial strain, forcing families to make difficult adjustments such as cutting household expenses, canceling extracurricular activities, eliminating weekly allowances, or postponing major plans. These changes can trigger feelings of sadness, disappointment, or even anger, particularly in children who may struggle to understand the situation.
Beyond financial concerns, the loss of income and routine can lead to anxiety, tension, and shifts in family roles. A partner may need to take on more work, while the laid-off individual might assume more domestic responsibilities, changes that can alter family dynamics and lead to conflict or stress if not communicated openly. Children may become emotionally withdrawn or act out, while parents may struggle with a sense of guilt, shame, or uncertainty about the future. The combined emotional and financial pressures can strain relationships, disrupt daily routines, and challenge a family’s sense of security.
SUMMARY
Whether the process is familiar or entirely new, the practical matters of handling severance paperwork, filing for unemployment benefits, managing finances with reduced or no income, and reassessing one’s career trajectory can be overwhelming, and may significantly affect family dynamics. Whether facing termination alone or receiving pink slips alongside friends and co-workers, the stress, anxiety, confusion, disbelief, anger, and fear of the future are all very real.
It is important to acknowledge the full scope of the experience, recognize the emotional and psychological effects, and reach out to our diverse team of highly trained, professional mental health counselors, therapists, and clinicians. Prioritizing self-care — for yourself, your spouse or partner, and your children — by speaking with a mental health professional can make a meaningful difference during this transition.
Improving Lives Counseling Services, Inc., offers individual, couples, family, and group sessions, in-person and online, tailored to the unique challenges of job loss. Our team provides compassionate support and practical tools to help you and your family navigate this time with strength, resilience, and hope. Call us to learn more.
