Laid off with startup equity — what happens now

A layoff starts a fast, expensive clock on your equity, usually before you've had time to think. Here's what happens to each kind of equity, the deadline you can't miss, and a calm order to work through it.

What happens to each kind

Vested options: usually yours to exercise — but only within the post-termination window (often ~90 days). Miss it and they expire.
Unvested options/RSUs: normally forfeited on your last day, unless your agreement or severance grants acceleration.
Already-exercised shares: yours — subject to the usual transfer restrictions and any repurchase right.
Double-trigger RSUs: time-vested but unsettled units may be forfeited if there's been no liquidity event — check the grant.

The deadline you can't miss

The 90-day clock (confirm yours) is the one that catches people. Within it you must decide whether to pay to exercise vested options — strike price plus any AMT or income tax — or let them go. Some companies offer an extended exercise window; check your agreement and any severance terms, and ask HR in writing.

A calm order to work through it

Find your numbers: vested options, strike, type, and the exact exercise deadline.
Cost it: the exercise & AMT calculator shows what exercising really costs.
Decide: if you can't fund it, see can't afford to exercise (sell-to-cover, financing, partial exercise or walking away).
Negotiate: ask about an extended window or any acceleration in your severance — in writing.
Keep your documents before you lose system access.

Frequently asked questions

How long do I have to exercise options after being laid off?

Commonly around 90 days from your termination date, but it varies — some companies offer extended windows of several years. Check your option agreement and any severance terms, and confirm the exact date in writing. Missing the window means vested options simply expire.

Do I lose my equity if I'm laid off?

Unvested options and RSUs are usually forfeited. Vested options are typically yours to exercise within the post-termination window (often ~90 days). Shares you've already exercised are yours, subject to transfer restrictions. Double-trigger RSUs that haven't settled may be forfeited — check your grant.

Can I negotiate my equity in a layoff?

Sometimes. It's reasonable to ask — in writing — about an extended exercise window, any acceleration of vesting, or including equity terms in a severance package. Outcomes vary, but asking costs nothing and the exercise-window extension in particular can be worth a great deal.

Get the numbers before you decide

Free, no sign-up: estimate what your stake is worth, the cost to exercise, and whether you can sell.

Value my equity (free) → · All free tools → · Glossary →

When you're ready to go deeper, there's an optional Equity Toolkit and Report.