Tech Layoff Survival Guide - Karoly Nyisztor's website

So, you were laid off recently, or you’ve got that bad feeling that you’re going to be let go soon. Here’s a framework that will help you through this challenging, effed-up period.

Watch the video version here: https://youtu.be/EAjGt6uaBbU?si=kWoWN866iOrm5wuc

As someone who’s spent over two decades in the corporate world and the software industry, my advice will probably be valuable.

#1 Face reality

In this situation, it’s normal to feel threatened, betrayed, and unsure of what tomorrow brings. But it’s important to keep a straight head. Instead of entering panic mode, sit down and try to plan the next step ahead.

Don’t live in the past, and don’t try to blame yourself or someone else for what happened. Even if you feel cheated, control your anger and focus on what’s ahead of you.

You’re not to blame, and you’re not a victim either. You’re one of the many hundreds of thousands of tech workers who were let go in the past year. Face this fact and don’t get bogged down in the rabbit hole of self-pity and pain. That’s the worst thing you can do!

So what should you do instead?

#2 Calm your mind

Right now, it keeps ringing the alarm bell and projecting mostly unfounded fears. This will paralyze you and rob you of your ability to plan.

Planning is the second step in this framework that paves the road to your new future. But first, you need to calm that racing mind.

How do you do that?

Go out for a walk. Actually, take long walks. If your neighborhood is uninspiring, travel somewhere you’ve always felt great. It doesn’t have to be expensive. It usually takes half an hour to reach a completely different environment.

I had a friend who lived in New York. When he got fed up with the busy city, he’d hop on a train and ride north. In less than an hour, he’d reach the Hudson Valley, an area full of forests, rivers, and quiet towns, perfect for long walks and contemplation. There, he’d clear his head, then come back to the Big Apple with new ideas and enough motivation to keep him going for another week.

This was after the lockdowns, after being furloughed. He was in the same situation as you.

Any physical activity will calm your mind. Hit the gym if you enjoy lifting weights. Hike, ride a bike, or run, anything that distracts you from the endless loop of “What am I going to do now?” This will also help you sleep better and balance out the negative effects of the shock of being let go.

Definitely do not gather with former colleagues who share your fate. This will only amplify your fears without solving anything. Someone who’s been laid off and managed to get their life straight can be a great mentor. But avoid people who are struggling themselves.

Once you’ve calmed your mind, had a few good nights of sleep, and your thoughts aren’t focused solely on the negatives anymore, that’s when you should start the third phase.

#3 Planning

First, take a piece of paper and answer a few questions.

3.1 Do I have savings?

If the answer is yes, move on to the next question.

If the answer is no, it’s a different story. Now you need money first. Is there any job you can take? Take it. It doesn’t matter if you dislike it or don’t enjoy it. It’s temporary and meant to keep you afloat.

I know someone who was let go more than a year ago. She’s been looking for jobs, but she’s very picky. She refuses to try anything else. This stubbornness led to a constantly degrading quality of life and increasing financial pressure on her family. She lives off her elderly mother’s pension, and now they both struggle to make ends meet.

If she doesn’t change her mindset, she’ll get stuck. And if her mother passes away, she’ll end up under a bridge. I genuinely don’t understand why she wouldn’t take any job, even if it’s not the perfect one.

You’ve got to do everything in your power to avoid the trap of living on welfare or your parents’ pension.

Now, back to planning. Assuming you do have some savings, the next question is:

3.2 How long will my savings support my current lifestyle?

Take everything into account. All expenses, even the smallest ones. You might discover subscriptions, apps, or streaming services you’ve completely forgotten about. Twenty dollars here, five dollars there, and it adds up quickly.

Go through the list and see where most of the money goes. You’re a tech person, so use Excel or Numbers to highlight the biggest expenses. Then decide what’s truly needed and what can be cut. The more expenses you eliminate, the longer your savings will last.

Yes, it will be uncomfortable to cancel habits like eating out every day or keeping that Hulu subscription. But these are nothing compared to a reality where your savings disappear completely.

Once you’ve stripped away unnecessary spending, check the numbers again. How many months or years can you survive without making any money? This is the worst-case scenario, and you need to be honest about it.

Now comes the next question.

3.3 Do I know anyone in my industry who could help me find a job?

Before knocking on McDonald’s door, try to find a job in your industry. This is the logical step. You’re probably smart enough to flip burgers, but that’s not where you shine.

You’ve spent years in tech. So reach out to people who might help you find a position in your niche. A former colleague, a relative, or even that random person you once debated C++ smart pointers with on LinkedIn could be your savior.

You lose nothing by asking. Having a real person put in a good word for you is infinitely better than sending your résumé to a random email address or applying through LinkedIn. Today, when soulless AI bots are everywhere, a real human connection is priceless.

If you know someone who might help, don’t be shy. Email them, or better yet, call them and ask if there’s an open position. There’s a good chance things will start moving quickly.

If you don’t have that option, apply online. But always prefer a real human connection if you have one.

And while applying, don’t just sit and wait. Prepare for the worst case: you might not find a tech job before your savings run thin.

That’s when you need to explore other options.

3.4 What other jobs are available that fit me?

Look beyond tech jobs. What else could pay your bills without burning through your savings?

Create a list with three columns:

Job | Income | Qualification (1 to 5)

Think outside the box. Despite being a software engineer, you might be good at things you’ve never considered monetizing.

Maybe you painted your own home. Check if there’s demand for painters. Maybe you’re great at cleaning up messy gardens and already have the equipment.

Be creative and open. Even wild ideas are worth writing down. This is about survival. You can’t afford to be judgmental or picky.

You might believe the only way you can earn money is by writing code. That’s simply not true. You’re smart, and you likely have many other skills that can be monetized.

If you’ve landed a job, make sure you never end up in the same shitty situation again.

#4 Take Action

Once your life is back in order, ask yourself the final question:

How do I make sure this never happens again?

You need to accept that corporate loyalty and job security no longer exist. If you ask me, they’ve never existed.

Once you’re employed again, start a side business.

Without exception, all my former managers told me not to build my own thing–whether it was writing books or developing my own software products. I didn’t care. You know what they did when the sh@t hit the fan and people were let go en masse? They were the first to leave and take care of themselves. If I hadn’t had my side business, I would have been toast. So, you know where to shave your “You shouldn’t do that” advice, Mr. Boss.

So, do start working on something while you are employed.

Use the same level-headed approach you used here. Look for ideas and products people are willing to pay for. Use your skills and creativity. Now, AI can 10x your output.

Create iOS apps, write a book, if you have a 3D printer, print simple accessories—cup holders, hooks, small interior add-ons for cars—and try to sell them on Etsy… Anything that doesn’t require a huge upfront investment is worth trying.

When you make your first $100, you’ll know you’ve found something with potential.

Final advice: beware of snake oil salesmen and fake gurus

Everybody and their mother seems to have a SaaS product or a ‘zero-code’ mobile app that makes $50,000+ per month. YouTube is full of self-made (or should I say, self-proclaimed) millionaires and “vibe coders” who supposedly built a fortune with a brilliant idea on a single Saturday afternoon.

Don’t fall for it.

Even if some of them made money, it’s usually due to reputation, timing, or pure luck. Many are simply lying.

Ask yourself this: why would someone making $50,000 a month with a simpleton app give away their secrets for free on YouTube?

The most important rule for becoming a successful entrepreneur is creating something that sells and is hard to replicate by others, not by you. Most of these SaaS millionaires claim to have made tons of money with simplistic apps no one in their right mind would pay for. Trust me, it almost never adds up. In the best case, they used to make money, but the idea is stale by now, so they switched to making money on YouTube.

Now download the framework PDF (you can find it in the video version’s description: https://youtu.be/EAjGt6uaBbU?si=kWoWN866iOrm5wuc) and start following the steps. I genuinely believe these no-BS steps can help you get through this phase.

And if they did, come back and let me know. We could all use a bit more positivity in this crazy, deranged, upside-down world.

God bless, and have a better new year.

Share your thoughts in the comments!

If you enjoyed this, you’ll likely find my other content just as useful.

🎓My Courses: