How to Cope with Layoffs in the IT Industry: A Mental Health Guide for the AI Era
đ The Reality: Smart People, Uncertain Times
The AI boom was supposed to be exciting.
Instead, itâs unsettling.
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Tools like ChatGPT, Copilot, and automation frameworks are rewriting job descriptions.
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Companies are ârightsizingâ teamsâoften overnight.
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Many mid-level engineers, testers, project managers, and even new graduates are facing sudden layoffsâwith silence, guilt, or confusion.
Itâs not just a financial setback. Itâs an identity crisis.
đŹ What People Say in Therapy
âI worked hard, didnât take breaksâand I was still let go.â
âEveryone says reskillâbut I donât even know where to begin.â
âMy self-worth is destroyed. I feel disposable.â
âI can’t tell my family. They’ll panic.â
These are not irrational thoughts. They are emotional side effects of professional trauma.
đ§ Why Layoffs Hurt So Deeply
1. Work = Identity in Indian Tech Culture
For many, your job is your name, worth, and social standing.
To lose it is to lose structure, status, and self.
2. Sudden Loss of Control
Layoffs are often impersonal, algorithmic, and opaque.
This unpredictability triggers anxiety, insomnia, and self-blame.
3. Shame and Isolation
Especially among high performers, being laid off feels like a personal failureâeven when itâs not.
4. Comparison and Panic
LinkedIn announcements. Up-skilling posts. Remote offers from abroad.
Everyone else seems to be âmoving onâ while you’re just trying to breathe.
đ ď¸ Mental Health Strategies to Cope
â 1. Name the Grief
Layoffs are a form of loss.
Let yourself feel anger, confusion, sadnessâeven numbness.
Use journaling, voice notes, or therapy to process these emotions.
â 2. Separate Self from Job
You were more than your job before it, and you still are.
Try affirmations like:
âMy skills didnât vanishâonly the position did.â
âAI changed the playing field, not my value.â
â 3. Create Structure in the Chaos
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Fixed wake/sleep times
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Job search hours (not 24×7 scrolling)
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Skill-building time
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Downtime without guilt
This helps reduce free-floating anxiety.
â 4. Rebuild Emotional Bandwidth
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Exercise, even simple walking
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Reduce doomscrolling
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Speak to mentors
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Avoid overconsumption of AI panic content
â 5. Talk to a Professional
You donât need to âwait until crisis.â
Short-term therapy can help you:
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Reframe failure
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Set goals
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Rebuild identity
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Tackle anxiety or depression
đź Practical Tips for Reorientation
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Make a list of transferable skills (communication, documentation, logic, systems thinking)
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Explore roles adjacent to your core skill (e.g., developer â tech writer, QA â prompt engineer)
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Consider short certifications in AI ethics, LLM tools, MLOps, or UX with a human-centered angle
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Be kind to yourself during interviewsâyou are not behind, you are in transition
đŹ Real-Life Example
Vikram, a 35-year-old backend engineer, was laid off after 11 years. In therapy, he said, âI built the backbone of systems, and now I feel spineless.â
Through therapy and career mentoring, he reframed his identity, built an AI-enhanced product demo portfolio, and now works as a freelance solution architectâon his own terms.
đ Dr. Srinivas Rajkumar T
Consultant Psychiatrist â Career Stress, Burnout & Transition Care
Apollo Clinics Velachery & Tambaram | Mind & Memory Lab
đ www.srinivasaiims.com
đ Consultation: +91 85951 55808
Helping professionals navigate layoff trauma, rebuild mental clarity, and create meaningful next steps.