Even though the job market showed signs of a rebound late last year, surveys revealed that more than a third of tech workers were still concerned about layoffs. As we move deeper into 2025, that sentiment has shown no signs of abating, especially given the recent turbulence in the stock market.
It appears that ongoing staff reductions, along with fears of becoming obsolete due to rapid advancements in artificial intelligence (AI), are continuing to weigh heavily on tech workers' minds.
The worst part is that layoff anxiety can erode your confidence and actually keep you from taking the initiative to move your career forward. In other words, it can become a self-fulfilling prophecy.
To keep your fears from becoming reality, here are six strategies for turning layoff anxiety into action.
Catch it, Challenge it, Change it
While updating your resume and launching a job search can help you take the initiative against job insecurity, it also has a secondary benefit. “Identifying and quantifying your achievements from past roles helps you remember how brilliant you are,” said Pavi Theva, leadership and career transformation coach. Besides boosting your confidence, it’s part of a broader strategy to replace negative thoughts with positive ones.
You have more control over your thoughts than you might think. If self-doubt or internal questions about your competence are causing you to feel anxious about losing your job, practice a highly effective cognitive behavioral therapy strategy called the three Cs: catch it, challenge it, change it.
The goal of catching negative thoughts, challenging them and changing or replacing them is to help you explore other ways of looking at the situation, Theva said. Here’s an exercise to help you identify and challenge negative or unhelpful thinking.
Creating a brag book or journal is another way to defeat negative self-talk. A brag document helps you track wins in your career, positive feedback from colleagues and performance reviews as well as recommendations. As a bonus, creating a record of your accomplishments can help you visualize your future state.
Visualize Success through Your Future Self
Instead of being consumed by your current predicament, setting goals and envisioning yourself in a new role or company can help you focus on activities and tasks to get there. When you create a roadmap with actionable steps to bridge knowledge gaps, learn new skills and achieve the vision, your worries will start to fade.
Even better, turn your worries into to-do lists that include updating your personal brand, working on side projects, and blogging and leveraging storytelling to connect with hiring managers and recruiters.
The bottom line is that avoiding your fear will only make it worse. Solve multiple problems by redirecting that energy toward creative, productive activities.
Help Your Body Function Better
Helping your body function better will help your brain work more efficiently, especially during times of stress noted Dr. Jeanette Bennett, associate professor of Psychological Science at the University of North Carolina, Charlotte.
When our bodies are poorly fed or tired, stress takes an even greater toll on our health and our performance suffers, Bennett said. Protect and maintain your parasympathetic nervous system by practicing good sleep hygiene, exercising and paying attention to your heart and breathing rate.
If you heart rate is elevated even when you’re sitting, incorporate stress-reducing activities like deep breathing, meditation, yoga or exercise. The key is to focus on regaining control of your situation in small increments by taking manageable steps, making consistent progress and celebrating small wins.
Connect with Inherently Resilient People
Don’t go it alone. Seek support and guidance from others, especially successful people who have overcome numerous obstacles in their careers.
It’s crucial to expand your network beyond those who have also been laid off, Bennett said. A broader network can suggest a wider range of opportunities and offer diverse perspectives and advice.
Seek Internal Opportunities
Rather than waiting around for the axe to fall, try to turn the tables in your favor. While there's no guarantee, employees who are visible, valuable and proactive are often less likely to be laid off during downsizing.
For example, see about transferring to a mission-critical project. Alternatively, consider volunteering to mentor colleagues or junior associates or take some things off your boss’s plate. Surveys show that people who served as mentors experienced lower levels of anxiety and described their job as more meaningful than those who did not mentor.
At the very least, use your remaining time to make yourself a more marketable prospect. Proactively seek out and utilize training and development opportunities, as well as attend seminars or conferences, to keep up with the latest industry trends and gain fresh perspectives.
Get Your Finances in Order
If you suspect that you might be laid off, proactively revisit your finances by assessing your current debt, savings and spending habits to prepare for a potential reduction in income.
Make yourself available for work from home and remote contract and part-time jobs. Having a secondary source of income can bolster your emergency fund and pay some bills while you look for another job.
If your company is struggling financially, consider resigning early to potentially secure a more generous severance package. Review your insurance, flexible spending account, comp time, bonus plan and 401(k) because you don’t want to leave anything on the table.
By preparing for a layoff both emotionally and financially, you can minimize anxiety and ensure that you are ready to move forward should you lose your job.
