Whether you’ve just been laid off or are watching the headlines and wondering if you’re next, you’re not alone. It's important to take steps quickly, like managing your severance pay, researching government benefits, and applying for Employment Insurance
Amid mass layoffs and economic uncertainty, this guide will walk you through exactly what to do if you’re laid off, so you can take control of the situation and move forward with clarity and confidence.
Layoffs in Canada in 2025
If you've recently lost your job, you're not alone, and you’re not just dealing with a company-wide restructuring. You’re living through a pivotal economic moment in Canada.
The latest wave of layoffs reported by CBC saw the loss of 33,000 jobs – and this isn't an isolated incident. It’s part of a larger downturn triggered by sweeping U.S. tariffs that have disrupted trade, driven up costs, and shaken the foundations of some of Canada’s most critical industries.
These mass layoffs bring home the point that it's not always your fault if you've been laid off. Some major companies take on way too much growth and will shed employees just as easily. It doesn't always come down to skill, talent, or passion.
Canada may be entering a prolonged period of instability. Provincial governments are scrambling to respond, but the pace and scale of job losses are moving faster than support systems can adapt.
This is no longer just a story about corporate profits, but the future of Canadian workers, Canadian industries, and Canada’s place in the global economy.
Now is the time to take advantage of Employment Insurance
Employment Insurance (EI) is a government benefit designed to support you if you lose your job through no fault of your own.
A cut of every paycheque goes towards EI, even if you've never had to take advantage of it in your life. If you've been laid off, apply for EI immediately.
There are different types of benefits, so we'll outline which ones you could apply for depending on your situation.
EI eligibility requirements for regular benefits
You can apply for EI if you've been laid off and if you meet these requirements:
- You've worked for a certain number of hours
- You've been without work for at least 7 consecutive days in the past year
- You're currently looking and willing to work
Depending on your eligibility, you should receive about 55% of your earnings, capped at $650 per week, for a duration of 14 to 45 weeks. To see the full list of requirements, see EI regular benefits: Do you qualify.
How many hours, exactly? Well, that depends on where you live and the unemployment rate for your region. It can be anywhere from 420 hours to 700.
If you're ready to apply, see "EI regular benefits: Apply."
Applying for EI if you're self-employed
Canadians who are self-employed are able to apply for EI Special Benefits by registering with the Canada Employment Insurance Commission. You could get access to 6 different types of benefits, including maternity, sickness, and compassionate care.
The downside is you have to wait 12 months after registering in order to apply for the benefits. So if you haven't registered yet, you may want to do that ASAP and read the next section for extra benefits that could help you in the short term.
You can register through the My Service Canada Account and apply for benefits here: EI benefits for self-employed people: Register.
Your severance package details
If you've lost your job, your employer may have offered you severance pay or a severance package. Here's more information on what this means for you.
What's a severance package?
Depending on your eligibility, severance pay is money your employer pays you after layoff or dismissal. You may also be offered certain benefits as part of a severance package or agreement.
Severance pay is typically available to long-term employees (at least 5 years of continuous employment) and is technically different from your pay in lieu of notice. The minimum here is usually 1 week's pay per year of service, but this can vary greatly and your employer can opt to increase that amount at their discretion.
There are many factors that go into calculating fair severance pay. Refer to your employment contract and talk to an employment lawyer if you feel like the amount you've been offered isn't reasonable.
Pay in lieu of notice, also known as termination pay, is typically provided after your probationary period is completed and should align with employment standards in effect in your province.
As its name suggests, employers could instead opt to give you "notice" and let you know ahead of time (typically 2 weeks) that your employment will be ending. If this is the case, then the pay in lieu of notice is waived.
Just cause dismissal is another reason why both severance pay and pay in lieu of notice might be waived.
If you'd like more information, see Understanding your severance pay.
What do you get in a severance package?
How much money you'll receive and what other benefits you can expect depends on several factors:
- Federal and provincial employment standards
- Your employment contract
- Length of your continuous employment
- Your employer's annual payroll,
- Reason for your job loss
- Union agreements (if applicable)
Here's a good compilation of all the Termination of Employment legislation by province.
Benefits can include help with finding a new job, certain pension benefits, and so on.
Some industries (like banks and air transportation) are regulated by the federal government.
How will your severance package be paid out?
There are three different ways you could receive your severance pay:
- As a lump-sum payment
- As a continuation of your normal salary for a set period of time
- As deferred payments paid out over two or more years
You may be able to choose how it's paid out if a certain method works better for you.
When you get your payment depends on the province and should be outlined with the rest of your information. For example, Ontario legislation states you must receive it either 7 days after losing your job or your next regular payday (whichever is later).
Any questions about your severance package? Don't be afraid to ask
Before you get your payment, you'll need to sign and accept a severance agreement. This should give you all the details.
You should be given time to review the document in detail, so be sure to read everything carefully and don't be afraid to consult with a lawyer before signing. And if you do, call multiple trusted labour lawyers in your area. Find out how much a contract review would cost, and then ask about their labour experience, their process, and their timeline (as severance offers typically have an end date).
You can also reach out to your company's HR department with more questions. If you worked for a smaller business, reaching out directly to your boss is likely your best bet.
Managing your money after being laid off
If you've lost your job, it can be overwhelming to wrap your head around how to keep yourself afloat with what money you have left. After all, the bills and necessities in your life will keep coming whether you have a job or not.
Here are 6 things you can do to keep your money in check.
1. Take advantage of all government benefits as quickly as possible
First, consider applying for resources like the EI as soon as you can.
We discuss them in more detail above, but in short, these benefits can get you extra money to support you while you're looking for a job, without needing to take out any loans or going into your savings. It's best to do this first so you can get approved and start getting your payments ASAP.
2. Dip in to your emergency fund
As they say, desperate times call for desperate measures.
If you've built that emergency fund everyone recommends for you, this may be exactly the time you've been waiting for.
No emergency fund? Might be something to get started on once everything goes back to normal. After all, things like this happen. The rule of thumb is to have at least 3 months of expenses saved up.
3. Get a low interest loan
If you need money right now, getting a low interest personal loan is a course of action you may want to consider. Just make sure to do the math and see if the interest rate you're being offered is something you can reasonably afford.
And once you have your feet back on the ground, make sure your debt doesn't hang around gaining interest. Make a plan to pay off your loan as soon as you can once you find a new job.
It makes sense to do this now while your credit score remains strong and you're hopefully still officially employed.
4. Consider the second-hand economy
While you wait for your EI and loan applications to go through, one option you have is to turn to the second-hand economy – using things like Kijiji, Craigslist, and the Facebook Marketplace.
Selling any items you don't really need is one way to get some extra cash when you need it.
If you need the money right away, you could even arrange "dead drops" where you leave the items outside for pickup and the purchaser leaves the money in your mailbox.
5. What to do if you need to sell investments
The one thing to keep in mind through all of this is it's not forever. You'll want to avoid making any rash decisions that could jeopardize your future just because you're scared of what's happening right now.
If you feel like you need to sell your investments, it may be best to sell your fixed income assets first. If you sell your equity assets while the stock market is low, you'll essentially be locking in your losses before they have a chance to recover.
If you're invested in a broad ETF or mutual fund that includes both fixed income and equity investments, you might consider splitting them into a 100% equity fund and a 100% fixed income fund according to your asset allocation and risk tolerance.
Once you've done that, you'll be able to sell off the fixed portion of your investments much more easily.
This strategy is only right for you if you won't need to sell off the equity portion of your portfolio anytime soon. Market recoveries take an average of 3 years based on the last 3 major market crashes (1987, 2001, 2008).
Please consult a qualified and unbiased investment advisor (preferably fee-only) to get help with your personal situation before making any big decisions.
5 ways to cope with layoffs and depression
Above and beyond the financial stressors, losing your job can take a toll mentally. Here are 4 things to keep in mind to stay productive despite the stress and situational depression.
1. Stick to a schedule despite being laid off
Despite feeling like your days are empty now, having a defined schedule in place can help increase your productivity and keep your spirits high.
Sure you can let yourself sleep in a bit, but waking up at a decent time and getting ready as if you were going into work can help keep you from descending into a depression.
As many lazy weekends have taught us – the more you laze around, the lazier you feel. If you make sure you're still getting up and keeping active, you'll have more energy to face the next phase of your life.
2. Set goals for yourself
Every day, give yourself small (or big!) goals that you want to achieve. These can help you clearly define what you need to do each day, give you a sense of accomplishment when they're achieved, and a general direction for your day-to-day life.
One example is setting a goal for a certain number of job applications completed per day. Remember to adjust as necessary if you find you're always coming up short or overshooting your goal.
3. Create your own dedicated work space
Once you're ready to get working on some new skills or job applications, it can help to create your own dedicated workspace.
This can be as simple as a repurposed dining table to as elaborate as a brand new desk set up in a room you cleared out to be an office. Let your budget and needs decide how far you need to go.
Having a separate area to do work can help get you into that work mindset much easier. It's best to avoid working where you play.
4. Finding a job is now your full-time job
It sounds cliche, but now that you don't have a job, your full-time job should be to make sure you will find or prepare yourself for a new job as quickly as possible.
Job hunting is challenging and rife with setbacks. However, if you're willing to put in more effort and hustle than everyone else, your chances of success will rise exponentially.
5. Rethink your career, upgrade your skills, and fill in your skill gaps
As they say, when one door closes, another opens.
Maybe this is the time to finally put into action that new life you've been dreaming about.
It may be a good time for some self-analysis. Think about your personal skill set – are there gaps you could fill in? Or could you improve and cultivate some of the skills you already have?
Or if you want to start a brand new career path, it's a good time to start working on the skills required for that.
There are plenty of online resources to help you out. YouTube is one place to start, but sites like Udemy and Skillshare offer detailed seminars on more topics than you could imagine.
Your 4-step plan to landing your dream job
Getting a new job can be stressful – so how can you make sure you stand out?
1. Polish your resume and LinkedIn account
Making a resume is an inexact science, but the first thing anyone can do is read through it again and make sure everything is up to date and clear.
The recommended length and format of resumes vary from field to field. For example, if you want to be a graphic designer, you may want to have your resume act as a demonstration of your skills. But if you're applying for an engineering position, keeping your information succinct and clear in plain sans serif text may be a better fit.
Don't neglect your LinkedIn account either. It serves as a database for recruiters, so keep it updated. Get a nice photo uploaded and spruce up all your information. Reach out to past colleagues, bosses, and professors and ask them to leave endorsements on your profile as well.
Finally, get that resume reviewed by peers and former colleagues to make sure you'll stand out as much as possible.
2. Go in prepared for your interview
Then once you do snag that interview, here are a couple of tips to help you make a great impression:
- Research and understand the business well to clearly show your interest.
- Focus on how you can make a meaningful impact on the company's results.
- Go in prepared with your own questions to ask them.
- Find things you have in common with the interviewer.
- Don't be afraid to take a second to think through your answers.
- Be friendly but confident.
- Follow up shortly after the interview.
All of these things can help get across that you care about this opportunity, are dedicated to making a good impression, and are capable of getting things done if you are hired.
3. Actively cultivate your network
On top of having the right skills, knowing the right people can be the edge you need to get your foot in the door. Connecting with people on LinkedIn and Twitter is a good way to make an impression online, or you can attend seminars and other events related to your field to get your name out there.
Sure, it'll be out of your comfort zone, but getting to know people face to face is a great way to get yourself known and recognized.
And remember that most people are there for similar reasons, so don't be afraid to introduce yourself.
4. Work on your personal brand
As an employee, you are your biggest asset. And in order to get your dream job, it's all about positioning yourself well and with the right people.
Figuring out the best parts of yourself and capitalizing on them will make it easier for your potential future employer to see exactly why they should hire you.
Determine what your interests and passions are, then work on making yourself the perfect person to do them.
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If you're worried about the consequences of the looming recession, making yourself a valued employee can increase your chances of keeping your job.
1. Think and act like an owner
The first step is to take ownership of your work and your company. If you think like an owner, all your tasks no longer seem like something just to get done and over with.
Try to see how each task plays into the bigger picture of the company. Act like your livelihood – and your job – is on the line, because technically it is.
If you think like an owner, you'll become more than just an employee. You'll be integral to the company.
2. Make yourself indispensable at work
If you bring something to the table that no one else does, it'll be really hard for your employer to make the decision to cut you. So make yourself the best at something no one else can do.
Learn everything at work inside and out, and study and hone your skills during your free time.
And one way to demonstrate your worth? Show how your work directly impacts the bottom line. If there's one thing business owners love to hear about, it's that their company is improving. Sketch out every way you impact the company, improve on it further, and make sure your boss knows it's you who's doing it.
3. Up-level and diversify your skills
Of course, it's great to be good at what you do, but what about being able to do stuff you're not expected to do either?
If you can take on multiple different roles at work, your value as an employee increases.
How to save money while layoffs loom
As you can imagine, we write a lot about saving money. To get you started on cutting your expenses, you can see our full list of money saving tips.
But getting laid off means unprecedented times, so maybe taking some extra steps is necessary. Here are some extra tips that go above and beyond simply cutting expenses.
Don't be afraid to call to negotiate interest rates
Call your loan providers, mortgage brokers, credit card companies, car loan company...anyone that's loaning you something – and ask for a break from the rate.
Honestly, the worst they can say is no.
Does this call for a mortgage holiday?
If you've ever paid extra on your mortgage (through prepayments, double-up payments, or higher than normal payments), then you're ahead of your amortization schedule. Many lenders will allow you to skip or reduce payments until you're no longer ahead.
But if you don't qualify, and if things get really bad and mortgage payments seem too much to handle, breaking your mortgage contract and moving to a smaller apartment is one option. It may seem really extreme, but if you lose your job or get sick – it might be better to cut your losses.
Here's some government information on breaking your mortgage contract.
Take advantage of food banks and other resources
If things start getting really tight, you may want to consider taking advantage of the help around you. Food banks, homeless shelters...they're all there to help people who need it.
Who can go to a food bank?
Eligibility requirements may differ from place to place, so it may be a good idea to call or visit one near you and ask them directly.
You don't need to be destitute to take advantage of a food bank either. Even if you have some savings, you can use a food bank to help reserve your money for rent and other essential expenses.
See Food Banks Canada's Find A Food Bank page for local information.
FAQ
How can I apply for Employment Insurance?
Those who lost their job may qualify for Employment Insurance (EI). As long as you meet the requirements, it's best to apply as soon as possible so you can start receiving your benefits while you're job hunting.
What's a severance package?
Severance pay is an amount of money employers sometimes offer upon termination of your contract. You may be offered other benefits as part of a severance package. Details will be in the agreement you'll need to sign upon dismissal.
Can employers drastically cut my hours and/or wages?
This depends on your employment contract and situation, but could be considered a constructive dismissal – if so, you may want to speak with an employment lawyer. In any case, you may qualify for EI or the new Emergency Benefits.
Are layoffs happening in Canada?
Unfortunately, yes, layoffs are happening. March 2025 saw the loss of 33,000 jobs – the largest loss since January 2022. According to Statistics Canada, the unemployment rate also increased from 6.6% to 6.7%.
Who is most at risk of layoffs?
There is no safe industry during a recession. However, sectors that rely on exports are susceptible to market fluctuations, making them more vulnerable during economic crises. The manufacturing sector, especially automotive, steel, and aluminum, will face immediate impacts from tariffs.
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