How to hire top talent during layoffs?

Layoffs are the perfect time to recruit because experienced and skilled talent are once again in the market.

All of them are looking for a job, and recruiters’ inboxes are packed with resumes.

But here’s the real challenge: How do you find the perfect match amidst all that noise?

To be real, your old hiring playbook won’t work right now. 

But are you not sure how to revamp your recruiting during layoffs?

We’ve got you covered.

This guide shows you how to:

• Hire the right fit
  
  
• Filter diverse talent strategically
  
  
• Win top talent before your competitors do

How are layoffs determined?

51% of companies base layoffs on cost-cutting and budget restructuring.

A combination of financial pressures, shifts in business strategy, and role redundancy affects which positions will be eliminated and which will stay.

So, how does the process of layoffs begin? 

It starts with identifying functions no longer aligned with core priorities or future growth objectives.

While individual performance can be a factor, the focus is usually on dissolving entire teams or merging overlapping positions following any restructuring.

The choices are shaped by unit profitability, goals for cost reduction, or the automation of manual roles.

You need to understand that these moves are rarely personal.

Top performers can also be affected, especially in teams undergoing restructuring. This is why layoffs can suddenly increase the pool of high-quality candidates who are fired for reasons unrelated to their performance.

How to hire the best talent during layoffs?

Step 1. Revamp your sourcing strategies

When mass layoffs happen, these candidates don’t show up on traditional recruiting channels.

Instead, they network in their known circles, update their LinkedIn, or start asking for referrals.

If you’re only sourcing through job boards and waiting for applicants to apply, you’re missing out on the chance to hire this top talent pool.

Find the top professionals during layoffs by revamping your hiring strategy in three simple steps : 

a. Expand your sourcing areas

Don’t stick to your usual sourcing channels.

Layoffs often hit niche teams like design, data science, or DEI. Once these candidates are laid off, they generally send resumes and request referrals in alumni groups and other platforms like : 

1. Niche Slack communities: Slack workspaces like TechLadies, DataTalks, or DesignX become active hubs for laid-off talent to share their portfolios and resumes.

2. Industry Discord servers: Creative and tech-focused Discord groups often have active jobs or referral channels for peer support.

3. Layoff-specific talent lists: The moderators of alumni groups often create public Google Sheets or Notion boards like LaidOff.fyi, which are lists of pre-vetted talent with roles, skills, and contact info.

4. Referral-based LinkedIn posts: Viral posts from ex-teammates or managers tagging laid-off employees or using LinkedIn Recruiter can help you spot professionals in search of a job.

5. Newsletter communities: Newsletters like Hire Tech Ladies or Remote First Jobs feature laid-off talent looking for remote or contract roles.

6. Subreddits: Niche subreddits like r/UXDesign, r/dataisbeautiful, or r/cscareerquestions have job threads supporting laid-off professionals.

7. Notion resume hubs:  Some laid-off candidates build shared Notion pages with mini-portfolios that are available on Google search results.

8. Internal Employee Resource Groups (ERGs):  ERG alumni networks for DEI, LGBTQ+, or Women in Tech share the resumes of impacted members.

9. Hiring-focused Twitter threads: X (formerly Twitter) threads tagging dozens of job-seeking peers often go viral post-layoff, expanding visibility fast.

Start by networking on these platforms. Talk about the open roles you’re hiring for. Tweak your outreach to show that you’re open to hiring laid-off candidates and offer special assistance to help them in the next steps of their career.

b. Utilize social media

Once a layoff hits, social media is filled with candidates who are engaging in the conversations related to the industry.

All you need is the right strategy to attract the laid-off talent and convert them into successful hires. 

 This three-step  LinkedIn strategy will help you hire laid-off candidates with ease:  

• Focus on creating niche talent pipelines for laid-off talents: Use keywords like “open to work,” “recently laid off,” or “actively looking” in LinkedIn and Twitter searches to find the profiles of these professionals. 

Then, build a custom pipeline based on skills and industries affected by layoffs using Recruit CRM. Utilise its Gen AI feature and craft tailored messages for each of the candidates. Engage regularly with these candidates through posts, messages, and updates to stay top-of-mind.

• Create interactive content tailored to their needs: Host live Q&A sessions or share behind-the-scenes content about your company culture, hiring needs, and candidate retention ways to build trust and attract candidates who resonate with your values. You can run a weekly Ask Me Anything live session with your hiring manager, discussing roles and answering candidate questions regarding the placement of laid-off candidates.

• Develop customized marketing strategies: Run hyper-targeted ad campaigns focused on laid-off professionals, highlighting flexibility, growth opportunities, and an inclusive workplace culture. Use inclusive language that speaks directly to those who have been recently impacted.

Step 2. Build a personalized outreach strategy

A generic message won’t cut through the noise during layoffs. 

While navigating uncertainty, candidates are often unsure of where they fit next. That’s why you need to take the time to reach out with empathy and offer honest guidance.

Craft a customized outreach strategy by following these three steps:

a. Understand why top candidates are laid off to create custom outreach

Layoffs aren’t always about poor performance. 

Often, high-performers are let go due to structural shifts, overhiring in certain phases, or budget rebalancing. 

For recruiters, this means top-tier talent is suddenly available.

But before sourcing them, you need to understand why they were affected.

This will help you craft personalised outreach messages and confidently pitch job offers.

Your outreach needs to be customized and focus on: 

• Specific details from their recent work or achievements: Referencing a recent project, certification, or accomplishment demonstrates you’ve done your homework and increases candidate engagement.
• How your opportunity aligns with their career goals: Connect the dots between their past roles and how your position can help them grow or pivot positively. Don’t just rush to collect their resumes; instead, find the best match by offering a clear value proposition.

b. Reach out to laid-off candidates in your network

If someone in your LinkedIn groups just posted about being laid off, don’t copy-paste template-based comments like “More power to you”.

Instead, send thoughtful and personalised notes like,  “Saw your update. It’s unfortunate, and I’m really sorry for your loss. If you’re open to it, then I can share insights and job openings that can be of help.” 

Level up your networking skills and reach out to laid-off candidates in your network. This will let you connect with professionals and acquire a talent pool ready to pivot. 

c. Provide guidance about recruiting.

Most laid-off professionals haven’t been on the job market in years. They might not know how to tailor resumes for today’s applicant tracking systems.

Use content marketing as your assistant to inform these candidates on how hiring methods have changed. 

Publish content that offers honest advice, like what kind of roles are trending, what skills are in demand, or how to prep for recruiter screens.

Create infographics, guides, and lead magnets that walk them through how to position themselves better in interviews. This builds trust with the candidates and increases sign-ups to your talent pipelines.

Step 3. Optimize the criteria for filtering candidates

Laid-off candidates don’t always follow a linear path.

Many of them are ready to pivot, pick up new skills, or bring value in other industries.

But often these candidates don’t make it past the screening stage because their title doesn’t match a keyword based on which the ATS filters their resumes.

That’s why you must optimize the criteria for filtering candidates during layoffs.

 Focus on skills, impact, and growth potential, and follow this three-step strategy : 

• Identify transferable skills: Instead of only looking for “ex-Amazon SDR” or “healthcare recruiter,” focus on what the candidate can do. Focus on skills and find which experiences can apply across industries. 

Determine whether they can manage pipelines, build client relationships, or lead a team.

• Remove outdated filters related to degrees: Years of experience, degree requirements, or specific company backgrounds can create unnecessary barriers.

If someone crushed targets at a startup for 2 years, why screen them out for not having the “minimum 5 years”?

Utilize Recruit CRM to create customizable filters and smart tags based on diverse candidate insights. This will ensure that you’re screening people, and not filtering just resumes.

• Access achievements/skills instead of job titles:  Focus on the scope of work and impact of the open job role.

Instead of searching professionals using  job titles, use phrases like “built,” “launched,” “increased,” “led,” or “reduced.” These signal ownership and the results that the candidates have achieved. 

Step 4. Invest in diversity hiring

When companies cut teams quickly, underrepresented groups, especially newer hires, remote workers, or DEI-specific roles, often get hit first. 

Your hiring methods must be intentional during a rebuild or rehire phase.

Here’s how you can focus on diversity hiring in a post-layoff scenario : 

a. Create inclusive job descriptions

Exclusionary language or extensive lists of unnecessary requirements and experience can deter candidates from unconventional backgrounds. Particularly those who have already been affected by layoffs.

Instead, use clean, inclusive language and focus on what’s truly essential.

Use inclusive language like :

• We encourage candidates of all backgrounds to apply, including women, people of color, LGBTQ+ individuals, people with disabilities, and veterans.

• Our recruiting team values transferable skills and welcomes applicants who bring a diverse range of experiences, even if they don’t meet every listed qualification.

• This company is an equal opportunity employer and is committed to creating an inclusive environment for all employees.

• Flexible work hours and remote options available to support different life circumstances and needs.

• Our belief is that diverse teams make better decisions and this our hiring drives strive to include a variety of perspectives in everything we do.

b. Redesign your skills assessments

Layoffs bring diverse skills and experiences to the market. 

Professionals who’ve worn multiple hats in startups or pivoted industries may not shine in rigid candidate screening models.

Don’t just fish for the perfect score in assessment rounds.

Instead, consult with industry leaders and develop interview questions to assess their transferable skills to understand what they can do, not just what their job title is.

c. Commit to DEI policies

If underrepresented talent doesn’t see DEI commitments in your messaging or process, they may assume diversity isn’t a priority anymore.

Mention your ongoing DEI efforts in outreach. Share data or stories about how your company conducts recruitment drives with inclusivity in mind.

Disclaimers like “We’re actively working to rebuild our teams with more diverse perspectives after recent layoffs” can double the response rate of candidates from underrepresented groups.

Step 5. Be innovative with hiring strategies

After being laid off, professionals don’t rush to jump into any open roles.

It’s essential for you to understand that these candidates are not available in conventional job portals or sourcing groups.

You need to build innovative strategies to attract them and get them into your talent pipeline.

Revamp your traditional recruiting methods in the following ways to boost your sourcing process during layoffs : 

• Invest in passive candidate engagement: Your sourcing shouldn’t only target “actively applying”  or “open to work” candidates. Instead, you need to target professionals who have been laid off and are passively looking for the perfect job role. 

Send personalized InMails, invite-only webinars, or monthly check-ins invites to your network. This will ensure that you’re signing up passive candidates to your list and showing them how you can support the next steps in their career.

• Provide freelance, part-time, and contractual opportunities: Not everyone laid off is ready to join a full-time role. Some want flexibility. Others want to test new industries. Offering project-based work or short-term contracts is a win-win: the company fills urgent gaps, and the candidate returns to new roles.

• Collaborate with leadership and finance teams: Hiring decisions during or after layoffs are rarely made in isolation. To stay aligned, you must partner closely with finance and leadership, not just for headcount approvals, but to explore other hiring methods like contingency recruiting.

Step 6. Build a positive employer brand image

Your communication strategy determines how your employer brand will be showcased.

You need to show empathy, transparency, and respect to the laid-off candidates throughout the sourcing and screening process. 

You can offer resume support and internal referrals, or even host alumni talent events to help people find and land new job roles. 

The key is to find which method aligns with your brand and can help you connect with these talents. 

Here are three ways in which you can build an inclusive and positive brand image during layoffs : 

a. Provide referrals to candidates laid off in your network

If someone good just got laid off and you can’t place them right away, don’t ghost them for that.

Instead, a quick intro, LinkedIn post, or DM to another hiring manager can make a massive difference to the candidate experience. 

Providing these candidates with access to your network fosters loyalty and enhances a positive employer brand.

b. Work closely with the marketing team and build compassionate hiring campaigns.

Collaborate with marketing teams to develop outreach strategies that acknowledge the current job climate.

Replace creative and quirky job descriptions like “rockstar wanted” with inclusive phrases like “We’re hiring and welcome those affected by recent layoffs”.

These changes foster trust and attract high-quality candidates who might be hesitant to apply for new job postings. 

c. Share testimonials of stability from candidates you’ve placed

Candidates who were laid off are looking for security. 

Sharing stories or quotes from others you’ve recently read is a great way to build trust with them.

Highlight their onboarding experience, supportive teams, or company stability to clarify doubts.

It gives proof that you’re placing people in roles where they’re actually being valued, not just filling seats.

Step 7. Upgrade your candidate experience

In a post-layoff market, candidate experience sets your brand apart.

Because how you treat laid-off candidates creates a lasting impression. 

A faster response, more transparent communication, or even a kind rejection can build long-term trust (and referrals) when people need it most.

Follow these three strategies to make sure you provide the best experience to laid-off talents: 

a. Be responsive and consistent throughout the hiring process

Laid-off candidates often apply to multiple roles at once.

If your team takes too long to reply or goes silent after an interview, they’ll move on, even if they were a perfect fit.

Set up automated “next steps” cold emails within 24 hours of every interview to avoid such candidate drop-offs. These follow-throughs won’t guarantee an offer but will elevate your employer brand and candidate retention.

b. Keep the rejected laid-off candidates in your talent pipelines

Many candidates are highly skilled but just not right for a particular role. 

With the proper tagging and notes in your pipeline, you can re-engage them when the right opening comes up.

Use automated tools like Recruit CRM to create a custom talent list of laid-off professionals who didn’t make the final cut but had strong potential. 

Its advanced filters and tags can help you keep them subscribed to your outreach strategies so that you don’t have to source them from scratch when another opening comes up.

c. Speed up the screening and selection process

Audit your interview loops. Decide on which steps can be reduced or removed to save time. 

Try pre-scheduled interview slots, skills-first screening calls, or same-day panel interviews.

These will ensure you’re not forcing the skilled and experienced professionals to undergo unnecessary skill assessment rounds. 

Step 8. Invest in upskilling to suit current market trends

Hiring market trends can fluctuate during layoffs. By upskilling, you gain an advantage over your competitors.

It will help you identify skill gaps early, guide candidates to focused learning, and enhance your team’s expertise to fill roles faster and build stronger relationships.

Here are three ways to upskill your recruiting skills even in uncertain times: 

a. Upskill on new AI tools to boost recruiting efficiency

Staying updated on AI-powered sourcing, screening, and engagement tools can give you a considerable advantage.

Utilize AI tools like automated resume parsers, competent candidate ranking, and AI email assistants to reduce the time lost in repetitive admin work. 

Invest time in mastering these technologies, and use tools like Recruit CRM to speed up workflows and improve candidate sourcing, all in a single interface.

If you want to revamp your hiring strategy and master sourcing top talent during layoffs, sign up for the FREE trial of Recruit CRM now!

b. Stay updated on labor market insights

Use tools like LinkedIn Talent Insights or Burning Glass to dive into labor market trends.

Learn to notice the changes in demand for different skills in your region and try to figure out trends like:

• What emerging skills are becoming more sought-after in your local job market right now?

• How do shifts in your region’s industry landscape affect the types of skills clients are looking for?

• Which traditional skills are declining in demand, and which new skills are replacing them in your area?

Having a clear idea of the labour market helps you guide laid-off professionals as well as clients who are looking for new hires during this time.  

Frequently asked questions

1. Where do most recruiters go wrong during layoff seasons?

Most recruiters treat laid-off candidates like low-risk, high-availability hires. But they forget to adjust outreach tone, speed, and screening filters. Many still use outdated job titles, ignore transferable skills, or delay responses, thus missing top talent that gets scooped up fast.

2. Does a hiring freeze mean a layoff?

Not always. A freeze usually means pausing new roles to stabilize budgets, but it often precedes restructuring. During hiring freezes, leadership still greenlights critical hires through exceptions or cross-functional reshuffling. 

3. What month do most layoffs occur?

January and February. These align with new fiscal plans and budget cuts. A quieter second wave often comes in May–June, after Q1 performance reviews. Recruiters tracking LinkedIn trends often spot spikes in “Open to Work” updates during these times.

4. Are tech layoffs still happening?

Yes, but they’ve shifted from mass layoffs to team-level cuts. Instead of big announcements, companies now quietly trim product lines or mid-level roles. Recruiters should monitor team structure changes and GitHub activity because those signal shifts before headlines do.

5. How to know if layoffs are coming?

Watch for subtle signs: sudden leadership exits, project pauses, hiring slowdowns, or unusually tight budget meetings. Also, internal hiring freezes and vague communication from top down are early red flags recruiters can catch before official notices.

6. How to compare the recruiting results between post-layoff and pre-layoff hiring drives?

Track changes in offer acceptance rates, time-to-fill, and quality of hire (via first 90-day performance or manager feedback). Also, review inbound application volume and diversity metrics as post-layoff hiring often draws more varied talent if outreach is handled right.