6 Financial Steps to Take if You’ve Been Impacted by a Corporate Layoff

The recent news of the Houston-based oil giant ConocoPhillips’ upcoming reduction in force has left many professionals facing difficult and unexpected decisions. Unfortunately, these events are not uncommon across industries, and they raise similar questions for employees nearing retirement or managing substantial assets.

“I was 5 years from retirement…what do I do now?”
“I’m not ready to contemplate a career change, let alone an early retirement decision.”
“My child just started college, how can I make this work?”

These and other frustrating questions arise whenever employees are caught up in large corporate layoff events. While these are difficult to predict and never feel good, having a better understanding of your financial options and potential income-generating solutions can help alleviate some of this stress. Walking through this journey of understanding and discovery with a team of trusted advisors is highly recommended.

Here are our 6 recommendations before choosing a package offered or feeling like you’ve got to jump on the next opportunity:

1. Understand the Offer

Take the time to review the layoff package that is being offered carefully. This typically includes severance pay, continuation of health benefits, and possibly pension or 401(k) treatment. Each of these components can have a significant effect on your near-term financial stability.

Questions to ask: How long will the severance cover essential expenses? Are there lump sum or payout options? Does the timing of benefits align with when you may begin drawing on other income streams?

Having clarity upfront ensures you’re not caught off guard later.

2. Review Your Employee Benefits

Many people underestimate the value of employer-provided benefits. Layoffs can bring immediate changes to health insurance, life insurance, and disability coverage. You may have the option to continue health coverage under COBRA or move to a spouse’s plan, but timing is critical. Gaps in coverage can lead to unnecessary stress or increased costs. Understanding what continues, what stops, and what your options are will help you maintain protection for yourself and your family.

3. Assess Stock and Incentive-Based Plans

Layoffs often accelerate timelines for stock options, restricted stock units (RSUs), and other incentive-based compensation. You may be required to exercise options within a short window or risk losing them. RSUs could vest sooner than expected, which may also trigger tax implications. These decisions are rarely straightforward and can significantly impact your wealth. Having a plan in place—particularly for high concentrations of employer stock—helps you make confident choices instead of reactive ones.

4. Address Stock Concentration Risks

If a large percentage of your portfolio is tied up in employer stock, a layoff only increases your financial exposure to that single company. Concentration risk can erode your long-term security if the company’s stock price falls. A disciplined diversification strategy—such as structured sales, exchange funds, or gifting strategies—can help reduce risk while balancing tax consequences. Turning concentrated wealth into a more resilient portfolio is often one of the most impactful steps you can take after a layoff.

5. Evaluate Early Retirement Options

For some, a layoff may force an earlier-than-planned retirement. While the idea of stepping away may feel daunting, this could also be an opportunity to reframe what retirement looks like.

Questions to ask: Do you have enough assets to sustain your lifestyle? Would part-time consulting or a passion project bridge the gap between now and full retirement?

By modeling scenarios with a financial advisor, you can assess whether early retirement is truly feasible and explore creative alternatives that balance financial needs with personal fulfillment.

6. Understand the Tax Consequences

Every financial move—accepting severance, exercising stock options, selling company shares, or taking pension payouts—carries tax implications. Poorly timed decisions can unintentionally push you into higher tax brackets or create avoidable penalties. By proactively planning, you can minimize taxes and ensure that more of your wealth stays with you and your family. Strategies may include spreading out income, utilizing tax-efficient investment vehicles, or coordinating charitable giving with liquidity events.

Turning Uncertainty Into Opportunity

A layoff may feel like a setback, but it can also serve as a turning point. With the right guidance, you can safeguard your assets, replace lost income, and establish a secure future.

At Mission Wealth, we specialize in helping accredited investors and those approaching retirement navigate transition events with clarity and confidence. Whether it’s income replacement strategies, stock concentration planning, or preparing for liquidity events, our team is here to help.

If you’ve recently been impacted by a corporate layoff, connect with us to explore your options and create a personalized plan. Schedule a confidential discovery call today.