Personal preparation for the “corporate restructure.”
Rogers, Arkansas – May 31, 2026 – Layoff announcements have been increasingly common in recent months. The month of May started with one of the more striking examples: Spirit Airlines ceasing operations on May 2nd. In April, the U.S. unemployment rate was 4.3%, unchanged from the prior month. The FRED data from the Federal Reserve Bank of St. Louis, places the average unemployment rate between January 2016 & December 2025 at approximately 4.6%. This means we are still operating near the long run trendline. The May unemployment figures will be released on June 5th. We will be watching closely.
As of today, layoffhedge.com accounts for over 82,000 people being displaced by the reported layoffs in May. The headlines hit close to home in Northwest Arkansas with Walmart cutting 1,000 corporate jobs earlier this month. The “corporate restructuring” sentiment echoes throughout the country as corporations navigate higher energy costs, private equity firms acquire small businesses, and artificial intelligence takes on different responsibilities across more industries. Job security for many professionals is no longer a given. This raises a critical question:
Would your financial plan survive a loss of income for 3 to 6 months?
Whether you’re anticipating a layoff or have already received the news, know this, you are not alone. The preparation you commit today could be the difference between a crisis and manageable transition. Below are five practical steps to strengthen your position as you navigate the uncertainty.
Develop an honest assessment of your financial runway
Begin by identifying your inflow resources. This may include severance pay, liquid savings, unemployment benefits, and any investment income. Next, calculate your total monthly obligations you have (mortgage, rent, loan minimums, insurance premiums, utilities, groceries, etc.). This is about clarity. Don’t underestimate your grocery bill or how much you pay in utilities each month. The arithmetic used to determine your financial runway (in months) is your inflow resources divided by your total monthly obligations.
Clarity about your runway should not be a cause for panic. It’s a source of agency, making proactive decisions rather than reactive ones. It provides a sense of control while navigating an uncertain time.
If you’ve received a severance agreement review it carefully before signing. Understanding what you agree to, and the possible rights you may be waiving, is a due diligence best practice. Considering a consultation with an employment attorney could be a reasonable and potentially worthwhile investment.
Evaluate your values and realign your cashflow management as necessary
Financial stress often reveals what’s most important to you and your family. At Crystal Oak, cashflow management is a foundational piece of our financial plans. Take the time to distinguish between what adds meaning to your life and what may have become habitual spending. This isn’t about cutting all your common comforts, it’s about aligning your spending with your priorities. Small, intentional shifts in spending (reviewing dining habits, discretionary purchases, or monthly subscriptions) can create breathing room without sacrificing the things that align with your values.
Treat your Emergency Fund as an asset, not a last resort
Financial planners across the country agree 3 to 6 months of your essential living expenses should be held in a liquid, accessible account. Unfortunately, most people do not treat it with the seriousness it deserves until it’s too late.
Your emergency fund exists for moments like this. A well-funded emergency fund is the buffer between a manageable transition and permanent setback. Using it thoughtfully can prevent reliance on high interest debt or premature liquidation of long-term investments.
Over 160,000 people were displaced by reported layoffs in April and May alone. The forces reshaping corporate America show no signs of slowing. Strengthening, or building, your emergency fund is one of the most rational financial decisions available to you. Start today. A consistent contribution to a dedicated account builds both resources and habits that will improve your financial situation for the future.
Measure the impact your employee benefits have on your peace of mind
Losing your employer sponsored benefits can introduce new costs and risks which aren’t initially clear. Health insurance is usually an immediate concern for those laid off. COBRA coverage is available in most situations, but the cost associated can be significant. Knowing your COBRA options in advance allows you to plan ahead rather than scramble at the worst possible time.
Beyond health insurance, employers may provide additional benefits like group life insurance and group disability insurance. At times these benefits are eligible to be ported to your next group plan or be converted into a personal policy for you. Understanding the limitations of your employer benefits allows you to more accurately quantify your risks and plan accordingly. If you have been relying on employer provided benefits for your insurance coverages, a layoff announcement is not the time to discover you need more coverage.
Review your investment portfolio with a steady hand
Market volatility often coincides with economic uncertainty and corporate layoff announcements. It’s natural to turn towards your investment portfolio and be tempted to make a change. However, there are other items that will necessitate your attention during this transition, trading your account more often should not be one of them. As your situation changes, yes, it’s important to review your investment portfolios but doing so with a steady mindset can be challenging.
Remind yourself, every dollar and investment account you own have their specific jobs and responsibilities. I encourage you to keep your focus on the goals of the dollars you’ve invested so far. Emotional decisions during turbulent times have consistently led to worse long-term outcomes. Your investment portfolio is not the vehicle for managing short-term liquidity needs. Your short-term liquidity needs should be serviced by your emergency fund.
If you have access to a retirement plan through your work, don’t rush into a decision on what to do next with it. You have options. Understanding the pros and cons of those options will depend on the retirement plan you may have access to at the next job. A financial advisor you trust should be able to clarify those options and guide you to the appropriate decision.
A closing thought
Every layoff statistic represents someone who is navigating a challenging situation without a crystal ball to see the future. If you or someone you know is navigating uncertainty, I want to be a resource for you.
A financial plan exists not to predict the future but to reduce your dependence on any single version of it.
As always, our goal is to provide clarity on the opportunities ahead.
