The 90-Day Financial Roadmap After a Tech Layoff

Author: Hazel Secco, CFP®, CDFA®

Estimated reading time: 7 minutes

Meta is announcing layoffs this Wednesday. If you’re one of the people who might be affected or if you’ve watched this wave coming and started wondering what you’d actually do — this is the roadmap you want before the paperwork hits your inbox.

The first 90 days after a tech layoff are not the time to panic. They are the time to move deliberately. The people who come out ahead financially are not the ones who got lucky. They’re the ones who knew what to do, and in what order, before they signed anything.

Here’s what actually matters.

The 90-Day Roadmap at a Glance

DAYS 1–30Severance & Equity	DAYS 30–60Healthcare & Tax	DAYS 60–90Your Next Offer
Read severance before signing — don’t rush	Decide between COBRA, ACA, or spouse’s plan	Research salary benchmarks (Levels.fyi, Glassdoor)
Negotiate non-compete scope, COBRA coverage, equity acceleration	Evaluate Roth conversion window while income is low	Ask for signing bonus to replace unvested equity
ISO holders: clock starts day 1 — 90 days to exercise at favorable rates	Harvest capital gains at 0% if income drops below threshold	Understand vesting schedule and acceleration triggers before accepting
Check unvested RSUs — forfeited unless acceleration clause applies	Map 12-month cash flow before pausing any contributions	Negotiate start date — 30 extra days can change your tax year

Days 1–30: Don’t Sign Anything You Haven’t Read

Your Severance Agreement

Severance is an offer, not a mandate. Companies negotiate — especially with senior employees — and most people don’t know that.

Before you sign, look for:

• Non-disparagement and non-compete language — how broad is it, and does it affect your next role?
• COBRA extension — some severance packages will cover your healthcare premiums for a period; the standard offer often does not
• Equity acceleration — does your agreement include any provision for unvested shares?
• Review window — federal law (the OWBPA) gives employees aged 40 and older 21 days to review a severance agreement, or 45 days if you’re part of a group layoff. You have time. Use it.

Your RSUs, ISOs, and Stock Options

This is where most tech employees leave serious money on the table.

• Unvested RSUs are typically forfeited at termination — unless your agreement includes an acceleration clause. Check before you assume.
• Vested but unexercised ISOs come with a 90-day post-termination window to exercise. After that, they convert to NQSOs and lose their favorable capital gains tax treatment. See IRS Topic 427 for the rules. This is one of the most expensive clocks in equity compensation, and it starts ticking the day you leave.
• NQSOs have exercise windows that vary by plan — read yours carefully.
• ESPPs — depending on the offering period timing, your accumulated contributions may be returned or used to purchase shares at the discounted price. This varies by plan.

The mistake most people make: they focus on the size of the severance check and miss equity decisions that are worth two or three times more.

Days 30–60: Healthcare, Cash Flow, and Tax Planning

Healthcare

COBRA continues your existing coverage, but you pay the full premium — typically two to three times what you were paying while employed. Individual coverage typically runs $400–$700/month; family coverage $1,200–$2,000/month or more. Learn more at DOL’s COBRA page.

Your alternatives:

• ACA marketplace coverage — a layoff qualifies as a Special Enrollment Period; coverage can start quickly and premiums may be lower depending on your income during the gap
• Spouse’s employer plan — a qualifying life event allows you to join mid-year
• HSA funds — if you have an HSA, you can use it for qualified medical expenses tax-free regardless of employment status

Cash Flow

The instinct after a layoff is to stop everything — pause contributions, pause transfers, pause anything that feels like spending. That instinct is understandable. It is also, in many cases, wrong.

The question is not “how do I cut everything?” The question is: what does my cash flow actually look like for the next 12 months, and what decisions does that unlock?

Many tech professionals, particularly those with significant equity comp, are in the lowest-income year of their career immediately following a layoff. That changes the math on almost every financial decision.

Tax Planning

A tech layoff, handled correctly, can be one of the most tax-efficient transitions of your financial life.

If your income drops significantly this year:

• Roth conversion window — traditional IRA or 401(k) balances converted to Roth this year will be taxed at your current lower rate, not the higher rate you’ll pay in a higher-income year
• Capital gains harvesting — if your taxable income falls below $49,450 (single) or $98,900 (married filing jointly) in 2026, your long-term capital gains rate drops to 0%. See IRS Topic 409 for details.
• ISO exercise timing — exercising ISOs in a lower-income year can significantly reduce your AMT exposure. See IRS Topic 427 for ISO tax treatment.

These decisions are not theoretical. They are specific to your income, your account balances, and your equity comp. The window is real and it closes.

Days 60–90: Your Next Negotiation Starts Now

Most people negotiate salary. People who’ve been through this before negotiate the full package.

Base salary: Research comp data (Levels.fyi, Glassdoor, Blind) for your target role and level. Know what the range actually is before you name a number.

Signing bonus: Often available, often not offered unless requested. A signing bonus is typically used to offset unvested equity you’re leaving behind — if you’re leaving RSUs or options on the table, this is the ask that makes you financially whole.

Equity grant: Understand the vesting schedule before you accept. Four-year with a one-year cliff is standard. Ask about acceleration triggers. Ask what happens to unvested equity if there’s an acquisition.

Start date: Negotiable more often than people realize. An extra 30 days can determine whether you’re in a low-income tax year or not — which affects every equity and Roth decision you make.

One thing worth knowing: a financial advisor who works with equity compensation can quantify exactly what your current package is worth after tax and tell you what you need to ask for in your next offer to make yourself financially whole. That analysis is specific to your numbers — it’s not general advice.

Equity Comp at a Glance: What Happens When You Leave

Type	What Happens at Layoff	Key Deadline	Tax Note
RSUs	Unvested shares forfeited unless your agreement has an acceleration clause. Vested shares you already own.	Check agreement before signing severance	Vested RSUs already taxed as ordinary income at vest — no additional action needed
ISOs	90-day window to exercise at ISO rates. After 90 days, automatically convert to NQSOs.	90 days from last day of employment — hard deadline	ISOs = potential capital gains treatment. NQSOs = ordinary income. Could be a 5-figure difference.
NQSOs	Exercise window varies by plan — could be 30 days, 90 days, or longer. Read your plan document.	Per your stock option agreement — check immediately	Taxed as ordinary income at exercise on the spread (FMV minus strike price)
ESPP	Depends on offering period. Contributions may be returned or used to purchase shares at discount.	Varies — check plan documents or HR	Discount at purchase typically taxed as ordinary income; gains on shares held >2 years may qualify for LTCG

What a Financial Advisor for Tech Layoffs Actually Does

Not every financial advisor works with equity compensation. The ones who do can help you:

• Calculate the after-tax value of each equity grant — RSUs, ISOs, NQSOs, ESPP — before you make any irreversible decisions
• Model the tax impact of exercising ISOs this year versus next
• Evaluate whether a Roth conversion makes sense during your income gap
• Structure your cash flow so you’re not drawing down savings unnecessarily
• Review your severance agreement and new offer letter for financial red flags

Hazel Secco, CFP® CDFA® is a fee-only fiduciary advisor based in Hoboken, NJ, serving clients virtually nationwide. She specializes in equity compensation and retirement planning for women in their 40s and 50s who are navigating major financial transitions. No products. No commissions. The analysis is on your side of the table.

If you’re affected by this week’s Meta layoffs — or you want to be ready before the next wave — book a call here with a financial advisor for tech layoffs.