Does a layoff automatically accelerate my equity?

No. Acceleration happens only if your offer letter, plan document, or severance agreement says so. Ask for the acceleration clause quoted in writing during negotiation; layoff rounds frequently fund transition-month credit for retention-sensitive roles.

What happens to unvested RSUs when I am laid off?

They normally forfeit at separation unless a plan provision, a change of control, or a negotiated cash-out covers them. Ask for an itemized statement of vested, unvested, and expiring units as of your last day.

When does my post-termination exercise window start?

In most plans, from the separation date, not from the notice date or the grant date. Ask for the exact deadline date in writing, because that single date sets your tax year and whether ISO treatment survives.

Should I exercise options during layoff week?

Only with the math on paper. Exercise consumes cash and can trigger AMT in the same year you receive severance income. Compare the spread, the window, and the plan document in the vesting calculator before signing anything.

Equity Decisions in Layoff Week

Layoff week is the equity decision week: vesting dates freeze, exercise windows start, and severance negotiation carries equity asks. Work the order, not the emotion.

The Week-One Moves

Know the dates: the vesting dates between notice and last day, the exercise window start (last day), and the plan's separation rules. See the vesting guide and the AMT guide.
PTEP & acceleration asks: extended exercise windows cost the company nothing; acceleration of transition months is fundable in the round. The severance asks include the equity lines in the scripts guide.
Sell vs hold: selling vested RSUs immediately converts gains to cash; holding post-layoff keeps market risk, and the exercise AMT on ISOs is the trap to model (see the exercise guide).
Insider rules: trading windows for former employees survive separation; 10b5-1 plans bind post-exit.

Severance & 280G

Executive packages mix severance, acceleration, and parachute math — the 280G wall is in the golden parachute guide. The layoff cash order is in the cash plan, and the separation wording in the separation guide.

Put the rule into action

Write the letter with the free Layoff & RIF Response Letter generator. The state pages carry the local payout and notice windows, and the application tracker keeps the follow-up date in writing.

Put the rule into action

Equity Vesting (RSU & Options) — what it means and what to do

Five dates that decide layoff week

Layoff week is decided by five dates, not by the meeting. Get them in writing before you sign any severance paper, because each one carries money or a tax year.

Notice date. The day the layoff was announced or the WARN notice date, which sets the clock for others too.
Vest dates between notice and your last day. Anything that vests before separation is yours; anything after usually forfeits.
Separation date. Most post-termination exercise windows start here, not at notice.
Exercise deadline. The plan’s window for vested options, with the exact date.
Acceleration trigger. Whether a layoff, a change of control, or a retirement triggers acceleration at all.

Print your own schedule in the vesting calculator, then ask benefits to confirm the dates in writing. Put the answers beside the severance offer in the application tracker so you are negotiating from documents, and see the equity vesting entry for how RSUs and options diverge.

The equity asks in the severance letter

Add equity lines to the severance negotiation, in this order, because each has a different cost to the employer:

Transition-month vest credit. Ask that the notice period count as service so the next tranche vests. Layoff rounds often fund this.
Extended post-termination exercise window. Cheap for the company, valuable to you. Ask for the deadline date, not a period.
Cash-out of unvested units. Some rounds buy out near-term tranches at the deal or plan value.
RSU withholding method. Confirm whether shares are withheld at vest and at what rate, so you know the net shares you receive.
Written statement of what survives. Vested, unvested, expired, and assumed by an acquirer, itemized by grant.

Send those five asks with the severance negotiation letter, and keep the tenure and multiplier math in the severance calculator so the cash and equity asks match one document. Executive packages add parachute math: read the 280G entry before signing a closing agreement.

Sell, hold, or exercise: model it as cash

Treat every equity decision as a payment, because the tax arrives before the sale proceeds do:

Selling vested RSUs immediately converts income at vest into cash and removes concentration risk, but the vest is already ordinary income; the sale only moves the gain.
Holding after separation keeps market risk you no longer control, and a decline can leave you with tax paid on a higher value.
Exercising ISOs costs cash plus alternative minimum tax on the spread. Model both before you sign the exercise.
Missing the window converts ISO treatment into non-qualified treatment, with withholding and ordinary income.

Ask two questions in writing: the exercise deadline date, and whether any trading restriction still applies to former insiders. A pre-existing trading plan can bind after exit, so confirm with the stock administrator or counsel rather than assuming you are free to sell. Then keep the 1099-B, the withholding records, and the grant paperwork in one folder; the layoff response letter is where you request those records in the same week you confirm severance.

Decision	What it costs	Do it only if
Sell vested RSUs at vest	Ordinary income already exists; sale moves only the gain	You need cash and want less single-stock risk
Exercise ISOs before the window ends	Cash plus AMT on the spread in the exercise year	The spread is modeled, not guessed
Do nothing	Window expires and ISO treatment converts	You have confirmed the deadline date in writing

Before you rely on a date or an amount on this page, check it against the California Mini-WARN rule page and the Colorado Mini-WARN rule page, along with the Mini-WARN Law definition and the equity tax trails guide hub. Rules move, and those pages carry the current text.

Frequently Asked Questions

Does a layoff automatically accelerate my equity?: No. Acceleration happens only if your offer letter, plan document, or severance agreement says so. Ask for the acceleration clause quoted in writing during negotiation; layoff rounds frequently fund transition-month credit for retention-sensitive roles.
What happens to unvested RSUs when I am laid off?: They normally forfeit at separation unless a plan provision, a change of control, or a negotiated cash-out covers them. Ask for an itemized statement of vested, unvested, and expiring units as of your last day.
When does my post-termination exercise window start?: In most plans, from the separation date, not from the notice date or the grant date. Ask for the exact deadline date in writing, because that single date sets your tax year and whether ISO treatment survives.
Should I exercise options during layoff week?: Only with the math on paper. Exercise consumes cash and can trigger AMT in the same year you receive severance income. Compare the spread, the window, and the plan document in the vesting calculator before signing anything.