Layoffs: What Really Happens, and How to Move Through It

Gerald Ang
Gerald Ang
May 21, 2025
5 min read
Gerald Ang, founder of Wild & Wise.co
For the person affected, it’s not just the end of a job, it’s the beginning of a very personal, very real psychological process.

There’s been a wave of layoffs again. You've seen it on the news.

It's sad, but that is the reality of the business landscape today if you are an employee.

Behind every announcement is a human story.

For the person affected, it’s not just the end of a job, it’s the beginning of a very personal, very real psychological process that we don’t talk about enough.

A layoff doesn’t just disrupt your career. It can disturb your identity, your sense of control, and sometimes, your self-worth.

In my work with leaders and creatives navigating reinvention, I’ve seen how important it is to understand what’s happening under the surface. Here’s what research tells us, in simple terms, about the emotional and mental journey and how we can navigate it with clarity and care.

1. The Shock and the Shame

Even when you know it’s not personal, it feels very personal.

The first question that comes up is often: What did I do wrong?

From a psychological perspective, this reaction is hardwired. A layoff triggers our brain’s fear response, especially the amygdala, which processes it as a threat to our stability and safety. Studies have even likened this to the early stages of grief.

What may help: Let yourself feel the loss. It’s okay to grieve. Talking to someone or simply acknowledging what’s happening internally makes a difference.

2. The Spiral of Self-Doubt

In the days or weeks after, it’s easy to slip into comparison mode.

You see others posting about new jobs or promotions, and start questioning your value. You might even feel pressure to “bounce back fast.”

But research consistently shows that job loss affects self-esteem, particularly when we link our worth to our work.

What may help: Give yourself permission to pause before reacting. Instead of rushing into job boards, take time to reflect. Take a short break if you can. What do you truly want now?

3. The Narrative Breakdown

Most of us carry a mental story about where we should be by now.

By 30, I should be a manager. By 40, I should be regional head.

A layoff can shatter that script if the job is tied closely to your identity.

Psychologists call this a disruption to our “narrative identity.” When the storyline breaks, it’s disorienting.

What may help: Reframe your story. Start small. Instead of “I failed,” try “I’m in transition.” The language you use matters.

4. The Silence and the Shame

You may go quiet. You will perhaps temporarily stop replying to texts. You may avoid LinkedIn.

But staying silent only deepens the shame. And shame, left unchecked, can grow in the dark.

What may help: Reach out to a few people who’ve been through it. You don’t need a massive support group, just a few people who understand. You’d be surprised how quickly honesty leads to connection. You will find your tribe when you reach out. We all need each other!

5. The Opening for Clarity

After the initial fog clears, when you are purposeful on it, and when you work on your well-being and your mental health, something unexpected can emerge: clarity.

You start asking different questions. What do I actually want now? What matters to me, beyond just a job title?

Psychologists refer to this as post-traumatic growth. The idea is that meaningful growth can come after the crisis. Not despite it, but because of it.

What may help: Ask yourself some clarifying questions:

  • What do I want to carry forward?
  • What boundaries do I want to create?
  • What kind of work and people do I want to align with now?

If You’re Going Through This Right Now

You are not your job.
You haven’t failed.
You are not behind.
You’re simply at a pivot point.
This isn’t the end of your story. It’s just a chapter change.

If this resonates with you, I invite you to stay connected to explore how I can support your journey. For more real conversations on career, creativity, and leadership, be sure to subscribe to this website. And if you know someone navigating a season of change who could use a little clarity, please share this with them.

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