The Impact of Layoffs on Mental Health & How to Heal
An unexpected job loss can throw life into chaos. The bills keep coming, kids and pets still need to be fed, and rent or mortgage payments don’t wait. Our first instinct is often to leap into problem-solving mode—updating résumés, searching for jobs, figuring out how to stay afloat.
When I was laid off from my role at a mental health tech startup in 2018, that’s exactly what I did. And in my experience, it’s what ambitious, career-oriented women do time and again: we keep moving, keep fixing, keep pushing forward.
But there’s another side to this story—one that often gets overlooked.
The Emotional Toll of Job Loss
Layoffs can shake more than just our routines—they can deeply impact our mental health. In the U.S., we place enormous cultural value on work and career, which means being let go feels personal, even when we know it isn’t.
Self-confidence takes a hit. Our sense of identity and worth gets rattled just as we’re stepping into networking conversations or job interviews. On top of that, we may feel anger or betrayal toward former colleagues, bosses, or larger political and economic forces that are far beyond our control.
It’s a lot to process—and often, we feel like we don’t have the time or energy to do it.
What Helps in the Aftermath
The good news? There are ways to navigate the storm with compassion for yourself while building strength for what comes next.
1. Create a routine.
Adding structure to your day helps maintain a sense of normalcy. It gives you an anchor in a time that feels uncertain—"and can help you stay on track for both self-care and job hunting.
2. Give yourself permission to grieve.
Job loss is a loss. The wide range of painful emotions you’re feeling—sadness, frustration, anxiety—are normal. Allowing space to grieve not only supports your mental health, it also clears the way for clarity about your next steps.
3. Get support.
This might mean talking with a trusted friend, connecting with a mentor or career counselor, or seeking out therapy to process the impact. You don’t have to go through this alone.
Final Thought
Losing a job can feel like losing part of yourself. But with time, support, and intentional care, it can also become a turning point—a chance to reimagine your path, rediscover your resilience, and rewrite what comes next.
