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When layoffs happen, they’re often immediate — former employees are shown the door and locked out of their company email within hours. Others are given a few days to tie up loose ends. But in a few cases, the good-byes drag on … and on and on. Sometimes laid-off workers have to stay on for weeks if they want severance and even train their replacements themselves. It’s awkward! Still, you’re getting paid just to keep showing up. Here, three laid-off women share what they did — and didn’t do — with the extra weeks they had to hang around their old jobs.
At the beginning of December, we all woke up to an email that was like, “The company’s closing in three weeks.” I think it went out at 7 a.m. on a Monday. Everyone came into the office and met with their bosses. And then it was basically several weeks of intense senioritis. No one was working hard or doing much of anything. People were openly interviewing for new jobs at their desks. You’d walk by and hear someone being like, “Well, my strengths are …” Everyone was like, “Who are you talking to? Do you know anyone hiring?” There was a sense of solidarity, and no one gave a shit anymore. Even our bosses were getting laid off, so there wasn’t anyone to be mad at — I mean, maybe extreme upper management, but they weren’t in our office.
It was a weirdly fun time to be at work. All the guise of professionalism was gone. We were all in the same boat, using that time to network and stealing company swag. Within a few days, the office supply closet was completely bare. All I managed to get were some mugs and pens.
They also gave us really good severance — six months of full pay. I wound up having a new job lined up before our last day. Frankly, I don’t think anyone was really that surprised that we were closing. It was a start-up and terribly managed, and they just threw money at everything. At the beginning, they were flush with VC cash, and we could do whatever we wanted — I’d pitch a project that would require me to fly across the country, and they’d be like, “Okay!” It was clear that it wasn’t going to last. There was almost this sense of having gotten away with something.
Five weeks ago, a meeting was put on my calendar on a Friday to discuss changes within my organization. I knew that layoffs were coming at some point — our chief marketing officer had told us a few months ago — but I didn’t think I’d be affected. They’d hired a consulting firm to go through and “streamline” certain departments, but if anything, I thought I’d get good news. I’d built a lot of relationships in my role, and I’d heard that the team I managed, which consisted of 20 people, might be expanding. So I got on the meeting — we’re mostly remote — and made some stupid joke and then I saw my manager looking terribly sad. And they said my role had been eliminated and my team would be decentralized. My boss was sending me text messages the whole time like, “I’m so sorry, I had no idea.”
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Come Monday, I found out which members of my team had been laid off too, and was completely shocked. One was a top performer. There were huge cuts across the company, almost at random. But no one knew who was safe and who wasn’t, which created more gossip. I got a call from a colleague who was like, “Oh my gosh, it’s a bloodbath.” He started listing all these people who were being let go. And I was like, “Yeah, and me too.” He couldn’t get off the phone fast enough.
Some people were dismissed immediately; others were given two weeks. They gave me five weeks, which I think was an attempt to be nice. But is it nice? It seems like they picked my final date based on the end of the quarter, so that they wouldn’t have to budget for my salary next quarter. Ultimately, it was just very awkward. I care a lot about my team, and I wanted to try to help with the transition as much as I could. But five weeks is a very long time to be hovering and feeling useless, the object of people’s pity. My end date was conditional — I had to stay for that five weeks if I wanted my severance package — but toward the end, I was just hanging around. During my last week, I got an automated email from the company congratulating me on my two-year work anniversary.
I stopped setting an alarm in the morning. If somebody needed me, they knew how to reach me, but I was only working for about two hours each day. There just wasn’t that much for me to do. I live near Disney World, so I went there a fair amount. I did a lot of reading. I went to 4:30 p.m. pilates classes. I’ve been looking at my LinkedIn. I trained for a 10K. I spent more time with my friends, and my dog got a lot of exercise. With my severance package, I technically don’t have to work for the rest of the year. Hopefully I find something new before then. But I also need some time to mend from this experience. I know I was valuable here, but they didn’t care — I was just a number on a spreadsheet.
I’d planned to send out a nice farewell note and put up an out-of-office message on my last day. But then, after I had five weeks to plan it, I got cut off from the system early, before I could do it. After all that, I didn’t even get to say good-bye. Now I just have to mail in my laptop.
When I was laid off and told that my last day would be in a month, I was in such shock that my immediate response was Maybe if I work extra hard before my last day, they won’t actually let me go. It was like a bad breakup where you hope you can change their mind. I had just turned 30 and gone through an actual bad breakup with my college boyfriend, too, so I was grappling with my self-esteem on multiple fronts.
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Not that I even considered it, but if I’d left before my end date, I would just get two weeks of severance. So the choice was either get paid for six more weeks or two more weeks — sort of a no-brainer. I was looking for a new job the whole time, but I was also still working my butt off. I stayed in this denial phase that maybe, if I proved myself, they’d be like, “Oh, we’ll keep you on for one more month, and another month after that.” It was delusional.
Some people have the intuition that they’re getting let go. I did not. I was never really given a reason. It seemed like a weird mismanagement issue, though I never really got to the bottom of it.
After I talked to HR, I went back to my desk. I sort of assumed my boss would say something, but she didn’t. So I waited for maybe an hour and then was like, Fuck this, I’m going home. Then I went out with a friend and got really, really drunk. The next morning I was so hungover, but I went into work anyway. And for the next few weeks, I was just trying to do everything as perfectly as possible. There was actually a lot of work to do. I had to finish up all of my deliverables and create a handover memo for all my responsibilities. I was also trying to be strategic. I figured that everyone I worked with might hopefully be a reference for me someday. So I wanted to be in everyone’s good graces.
I had a lot of access to free products at my job, but I didn’t take anything. I was honestly too nervous. I downloaded my contacts and some of my work off the company server, and I even felt guilty about that, which I know I shouldn’t have. At one point I asked my boss if we could say that I was leaving — not that I had been laid off — and she was like, “No.” She was not interested in being remotely helpful. Looking back, I’m so glad I got out of that job. It was such an awful workplace. And it’s wild to me that I was so desperate to stay for as long as I could.
Email your money conundrums to mytwocents@nymag.com(and read our submission terms here.)
Reader question: My spouse has little interest in our financial position. As we age, this concerns me. I try to share some basic information (income, spending, account balances, debt, and so on) each month but rarely get a response. I think graphs or charts might be of more interest to her than a bunch of numbers. What recommendations would you have for illustrating our financial position so that I am not the only person aware of how we are situated? Thanks!
Answer: Your situation is pretty common. Most couples I know develop a division of labor over time, where one person is in charge of financial matters and the other person is less involved. That’s definitely the case for my husband and me. He’s in charge of paying all the monthly bills and preparing our tax returns, but the financial planning and investment decisions are up to me. This type of arrangement might work well for a long time, but can become less sustainable with age, particularly if the “finance person” in the relationship dies or develops a major health issue.
Online tools and mind maps
Illustrating your financial situation with charts and graphs is a great idea that might help your spouse become a little more involved. Morningstar’s Portfolio X-Ray tool includes a variety of images that help illustrate your financial situation. Websites for most major brokerage firms also include some visual tools. Schwab, for example, offers a Portfolio Checkup and a bar graph illustrating your account’s monthly income from dividends and interest income. Vanguard has a Portfolio Watch tool and a variety of performance illustrations, tools, and calculators.
A mind map, which we used with clients when I worked for a financial advisory firm, can be another way to picture your entire financial situation on one page. There are various softwaretemplates for drawing a mind map, or you can simply sketch it out with a large sheet of paper and a pencil. Start with your names at the center of the page. Then draw spokes connecting to various categories, such as names of other family members; investment accounts; real estate and other assets, insurance policies, estate plans, key goals and values, and contact information for accountants, estate planners, and other professionals. It can be helpful to go through the mind map together and make any updates needed at least once a year.
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Other ways to communicate about money
A few other ideas—though not related to charts and graphs—might also be useful.
I like the idea of putting together a net worth statement that itemizes cash, taxable accounts, real estate, retirement accounts, and debt for each member of the couple as well as items owned jointly. It’s a good idea to update this document at least once a year and discuss it as a couple. If you set up the document as a spreadsheet, you can include columns with additional information such as account numbers, what each account is used for, which accounts are subject to required minimum distributions, or tax issues like potential capital gains.
Many couples also put together a binder (sometimes humorously called a “Doomsday Book”) that contains information about where to find important paperwork, insurance policies, how bills are paid, what each account is for, steps the surviving spouse will need to take, final wishes, and any other critical information.
A well-qualified financial adviser can bridge the information gap
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Finally, you could consider working with a good financial adviser, who can help involve your spouse in financial matters while you’re still living and step in to fully manage investments and personal finance decisions if you pass away before your spouse. Make sure the adviser holds the Certified Financial Planner designation and charges fees that are reasonable. Although a 1% fee is still the industry standard for accounts of $1 million or less, it’s possible to find advisers who charge significantly less, including a few who price their services based on hours worked instead of a percentage of assets under management.
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This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.
Amy C. Arnott, CFA, is a portfolio strategist for Morningstar and co-host of The Long View podcast.
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What If This Turns Out to Be a Terrible Time to Retire?
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If you have ever taken out a mortgage, you’ll know there are a lot of requirements to meet. You may need to put down a certain amount and have a debt-to-income ratio below a certain threshold. You may also run into limits on how much you can borrow or what sources of income the lender will count.
These rules do not apply to all mortgages — just to conforming mortgages, which is what the majority of borrowers take out. However, mortgage lenders are increasingly offering what are known as nonconforming loans, or mortgages that do not “comply with every one of the strict standards put in place after the housing crisis,” said The Wall Street Journal. While “still a small portion,” the “share of mortgages using alternative lending practices” has “doubled in size over the past three years.”
What are nonconforming loans?
A nonconforming mortgage is a “type of home loan that doesn’t meet some or all of the guidelines that make them eligible for purchase by Fannie Mae and Freddie Mac,” said Bankrate. These are the government-sponsored entities that “support much of the secondary mortgage market in the U.S.,” meaning they often purchase resold mortgages.
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Fannie Mae and Freddie Mac have “federal rules that limit the purchase of loans deemed relatively risk-free,” said Investopedia. Loans that meet these guidelines are conforming loans; loans that do not are nonconforming. To be a conforming loan, a mortgage must fall under a certain loan amount, and the borrower must meet specific criteria when it comes to their credit score, debt-to-income ratio and loan-to-value ratio.
Effectively, any home loan that does not align with these stipulations is considered nonconforming. Examples include jumbo loans, government-backed loans, bridge loans and interest-only loans.
Why do people get them?
There are a wide range of reasons people may opt for a nonconforming mortgage. For one, “you may have no choice but to choose a nonconforming jumbo loan if you want to buy an expensive property,” said Rocket Mortgage. These loans can also provide more flexibility when it comes to the type of property you purchase, your credit score and your down payment amount.
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Nonconforming loans additionally “offer an opportunity for home buyers who might not otherwise qualify for traditional loans because they are self-employed or hold their wealth in assets such as real estate,” said the Journal.
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What are the drawbacks?
For starters, there are fewer lenders offering them “since they pose a higher risk to the bank or mortgage lender,” said Yahoo Finance. That said, availability can vary depending on the specific type, as “some nonconforming loans (like FHA mortgages) are common, while others (like USDA loans) can be harder to find.”
Nonconforming loans also “generally carry a higher interest rate for the borrower,” said the Journal, given the increased risk to the lender. Still, this can vary by loan type. For instance, “FHA, VA and USDA loans usually have lower interest rates,” while “less common nonconforming loans, such as bridge loans, often have higher interest rates,” said Yahoo Finance. There is also the possibility that a nonconforming loan “could have an unusual repayment schedule or other features that make it harder to repay,” said Bankrate.