When Clients Are Laid Off, How to Ease the Sting: Advisors' Advice

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Layoffs can be devastating to a client’s well-being and finances.

“It will shake you to the core when a dear client replies to your email with, ‘A few things have changed. Bank eliminated my job and let me go this morning. I need to read and sign the severance package,’” said Jay Beynon, a financial advisor with Axió Capital Advisors at Stifel Independent Advisors.

Despite a strong jobs report last month, layoffs have dominated headlines early this year and are unlikely to cease. A recent study by Resume Builder found that nearly 4 in 10 employers expect layoffs in 2024. So if clients haven’t been personally affected yet by layoffs, they or someone close to them might be soon.

But like any crisis, layoffs can also be an opportunity.

Advisors who show up in a client’s lowest moments can set themselves up to retain that client’s business when the good times return, and ultimately over the long term.

From helping clients cut expenses and rethink retirement plans to weighing COBRA against other health insurance options, opportunities abound for financial advisors to demonstrate value after a layoff.

We asked advisors to share what their top advice would be for a client who’s been laid off, and/or what they do to help such clients.

See the accompanying gallery for what they had to say. The responses have been edited for clarity and length.

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