Layoff Runway Calculator for Software Engineers
Tech layoffs have become a recurring feature of the industry: FAANG companies, high-growth startups, and mid-size SaaS firms have all executed significant reductions in force since 2022. Software engineers face a distinctive financial profile during a layoff — often higher savings, significant equity compensation, and a concentrated exposure to a sector that can experience simultaneous hiring freezes across hundreds of companies.
Salary Tiers and Runway Estimates
| Level | Monthly Income | Typical Monthly Expenses | Base Runway (savings only) |
|---|---|---|---|
| Junior / Entry ($85k) | $7,083/mo | $3,500/mo (lean) | ~3–4 months |
| Mid-Level ($120k) | $10,000/mo | $5,200/mo (median) | ~4–6 months |
| Senior / Staff ($160k) | $13,333/mo | $8,000/mo (comfortable) | ~5–8 months |
Runway estimates assume 3 months severance + 3 months savings as a starting buffer. Your actual runway depends on your specific savings balance — use the calculator above for your number.
What’s Different About a Software Engineer Layoff
Tech severance is more standardized than most industries. The widely observed norm is 2–4 weeks of base pay per year of service, plus continuation of health benefits during the severance period. Many companies — particularly large ones — offer a minimum floor (often 8–12 weeks) regardless of tenure. Mass layoffs at companies with 100 or more employees at a single site may trigger the federal WARN Act, entitling affected employees to 60 days of pay and benefits even if notice was not given.
RSU vesting cliffs are the most financially significant variable in a tech layoff. An engineer laid off one week before a major vesting cliff may forfeit tens of thousands of dollars in stock. Before signing any severance release, verify your next vesting date and whether the company is willing to extend your termination date or provide cash compensation in lieu of unvested grants. Severance releases are typically irrevocable once signed.
The structure of severance matters for unemployment insurance. Lump-sum severance is typically treated differently from salary continuation: many states allow you to file for UI immediately with lump-sum severance, while salary continuation (where you remain on payroll) delays UI eligibility. Verify your state’s rules before assuming when your UI clock starts.
Worked Example: Mid-Level SWE Layoff
Engineer with 3.5 years of tenure, $120k salary, $40,000 in savings, laid off in a WARN Act event.
Severance: 4 weeks × $2,308/week = $9,231 (lump sum)
WARN Act pay (60 days): $120,000 ÷ 260 × 60 = $27,692
Total buffer: $40,000 + $9,231 + $27,692 = $76,923
Monthly expenses: $5,200 — UI benefit: $1,900 = $3,300 effective burn
Runway: $76,923 ÷ $3,300 = 23+ months
WARN Act pay is the most underappreciated financial buffer in a tech layoff. If you were in a mass layoff and didn’t receive 60 days notice, you may be owed significant additional compensation.
Action Checklist for Software Engineers
- Check your RSU vesting cliff immediately. Do not sign a severance release until you know what equity vests in the next 30–90 days and whether you are forfeiting it. This is often negotiable.
- Verify WARN Act applicability. If your layoff affected 100+ employees at your site, your employer may owe 60 days of pay and benefits regardless of what the severance letter says. File a complaint with the Department of Labor if not provided.
- Understand lump-sum vs. salary continuation. Salary continuation keeps you on payroll (and delays UI eligibility). Lump-sum severance may allow you to file for UI immediately. Know which you have before making financial plans.
- Calculate your garden leave or non-compete duration. Some tech employment agreements include non-compete clauses (enforceable in some states, not others) or garden leave provisions that restrict your next role. Know the scope before your search begins.
- COBRA vs. ACA marketplace. Tech health plans are expensive — COBRA can run $700–$1,500/month for an individual. A layoff is a qualifying life event for ACA marketplace enrollment. Compare plan costs carefully; ACA is often significantly cheaper for those whose income will drop.
- Plan for a 3–6 month search, longer at senior levels. In a hot market, mid-level SWEs can land in 6–8 weeks. In a soft market with simultaneous industry-wide layoffs, 5–9 months is realistic for senior and staff-level engineers. Build your runway calculation around the conservative estimate.
Frequently Asked Questions
Does a tech layoff trigger the WARN Act?
Yes, if 100 or more employees are affected at one site within a 30-day period. Employers must provide 60 days advance notice or pay 60 days of wages and benefits in lieu of notice. Many large tech layoffs have triggered the WARN Act — check whether your layoff qualifies. If it does and you didn’t receive notice or equivalent pay, you have a legal claim.
What happens to unvested RSUs and stock options after a tech layoff?
Unvested RSUs are typically forfeited on your termination date. Incentive stock options (ISOs) have a 90-day post-termination exercise window before they expire worthless. Non-qualified stock options (NSOs) vary by grant agreement. Review every grant agreement before signing a severance release — you may be giving up equity that vests within days or weeks of your termination date.
How long does a software engineering job search take after a layoff?
Typically 2–6 months for mid-level engineers and 4–9 months for senior and staff-level engineers. In a down market where hiring freezes are widespread, add 2–3 months to those estimates. Plan your runway calculation around the upper end of these ranges — it’s better to have buffer remaining when you land than to run out while still searching.