American Express announced on Friday, October 23, 2026, that it plans to cut about 5% of its global workforce, roughly 3,500 of its 78,000 jobs, and took a $336 million restructuring charge in the third quarter. It came the same week eBay disclosed plans to cut about 9% of its staff. If you are in one of these companies, or in any team that just heard the word "restructuring", the most expensive mistakes usually happen in the first meeting with HR, not months later.
This page gives you eight word-for-word scripts for those conversations, the dates and rules that protect you in the US, and the one number most people underestimate: what keeping your health insurance through COBRA can cost.
What happened this week
Chief executive Stephen Squeri disclosed the American Express plan on the company's third-quarter earnings call, according to Reuters. He said the company needed "to become a more agile and efficient organization", and the cuts are widely reported as part of preparing the business for AI. The company has not published a role-by-role schedule. Separately, eBay said it will cut about 9% of its global workforce, expects $130 million to $150 million in mostly severance costs, and aims to be substantially done by the end of March 2027.
The wider job market is slower than a year ago. US employers added just 29,000 jobs in September 2026, unemployment rose to 4.2%, and 1.9 million people, 27.1% of the unemployed, had been looking for work for 27 weeks or more (Bureau of Labor Statistics, released October 2, 2026). That is why the terms you agree in the next few days matter: they may need to last longer than you expect. Some employers are offering voluntary exits instead, such as the Microsoft buyout offered to about 60,000 staff.
Scripts 1 to 4: in the first meeting
You do not need to argue in the first meeting. Your only job is to collect information in writing and buy yourself time.
Script 1: Get it in writing.
"Thank you for telling me. Before I respond, could you email me the separation agreement, my last working day, my final pay date, and a summary of my benefits end dates?"
Script 2: Ask for time.
"I'd like to review this properly before signing. What is the deadline, and is there any flexibility on it?"
If you are 40 or older and asked to waive age-discrimination claims, federal law (the Older Workers Benefit Protection Act) generally gives you at least 21 days to consider the agreement, or 45 days when it is part of a group layoff, plus 7 days to revoke after signing, according to the EEOC. Group-layoff agreements must also list the job titles and ages of people selected and not selected.
Script 3: Understand the formula.
"Can you show me how my severance was calculated? Does it include my years of service, my bonus target and any unused vacation?"
Script 4: Notice period.
"Is this layoff covered by WARN Act notice? If so, how is the 60-day notice period being handled for me: working notice, pay in lieu, or both?"
The federal WARN Act generally requires employers with 100 or more employees to give 60 days' notice of plant closings and mass layoffs (US Department of Labor). Some states have stricter rules. Whether it applies to you depends on your site and the number of people affected, so the question is worth asking.
The number most people underestimate: COBRA
COBRA lets you keep your employer health plan, usually for up to 18 months, but you can be charged up to 102% of the full premium, including the part your employer used to pay (US Department of Labor). Using the average 2025 employer premiums from KFF's Employer Health Benefits Survey:
| Coverage | Average yearly premium | COBRA at 102%, per month | Typical worker share before, per month |
|---|---|---|---|
| Single | $9,325 | $792.63 | not given by KFF summary |
| Family | $26,993 | $2,294.41 | $570.83 |
Our calculations from KFF 2025 averages (US). Your plan's real cost will differ; ask HR for your exact COBRA rate.
For an average family plan, COBRA can cost about four times what you paid from your paycheck. That one line can swallow a severance check fast.
An illustrative example: if a severance formula paid two weeks per year of service, someone earning $80,000 with six years of service would get 12 weeks, about $18,462 before tax. Eight months of average family COBRA would cost about $18,355. That is why the health-insurance question belongs in your first week, along with comparing COBRA with a Marketplace plan at HealthCare.gov, where losing job-based coverage usually opens a special enrollment period.
From the shop
When a layoff lands, the hard part is not knowing which bill to cut first or how long your money really lasts.
Layoff-Ready: The Income Shock Playbook walks you through it step by step:
- a runway worksheet that turns severance, savings and unemployment benefits into a clear number of months
- a bill-triage list for what to pause, cut, renegotiate or protect first
- checklists for the first 72 hours, the first 30 days and the job search
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Scripts 5 to 8: before you sign
Script 5: Health cover end date.
"On what exact date does my health coverage end, and what will my monthly COBRA premium be for my current plan? Is any COBRA subsidy included in the package?"
Script 6: Bonus, equity and vacation.
"What happens to my 2026 bonus, any unvested shares and my unused vacation days? Could you confirm each in writing?"
Script 7: A reasonable ask.
"Given my years here and my results this year, I'd like to ask whether the company could extend my severance by [X] weeks, or cover part of my COBRA premium. Who would make that decision?"
Script 8: The way out.
"Can we agree on a neutral reference and how my departure will be described? And am I eligible to apply for open internal roles before my last day?"
A few practical notes. Apply for unemployment insurance in your state as soon as you are eligible; rules on how severance affects benefits vary by state, and CareerOneStop (sponsored by the US Department of Labor) links to every state's office. If the agreement is complex or you are being asked to give up significant rights, a short consultation with an employment lawyer can be worth it. And if this week's news is making you anxious, talk to someone you trust; you do not have to work through it alone.
For the hour-by-hour version, see AI layoffs are rising in 2026: your 72-hour money plan. If you are still employed but worried, our 30-day money plan for an uncertain job market and how much emergency fund you need in 2026 will help you prepare. For the next big signal on the job market, see what the October 2026 jobs report could mean for you.
Frequently asked questions
How many jobs is American Express cutting?
About 5% of its global workforce. The chief executive put the company's headcount at about 78,000 and the cuts at roughly 3,500. The company took a $336 million restructuring charge in the third quarter of 2026.
Do I have to sign a severance agreement right away?
Usually not. Ask for the deadline in writing. If you are 40 or older and waiving age claims, federal law generally gives you 21 days, or 45 days in a group layoff, plus a 7-day revocation period.
How much does COBRA cost after a layoff?
Up to 102% of your plan's full premium. Based on KFF's 2025 averages, that is about $793 a month for single coverage and about $2,294 a month for family coverage.
Sources
- Reuters, "AmEx CEO says company to cut 5% of total workforce", October 23, 2026 (via AOL); TipRanks, October 23, 2026 (3,500 jobs, 78,000 staff, $336m charge).
- eBay Inc., Form 8-K filed October 22, 2026, as reported by StockTitan.
- US Bureau of Labor Statistics, The Employment Situation, September 2026, released October 2, 2026.
- US Department of Labor, EBSA, "FAQs on COBRA Continuation Health Coverage"; DOL, "Plant Closings and Layoffs" (WARN Act).
- US Equal Employment Opportunity Commission, guidance on waivers under the Older Workers Benefit Protection Act.
- KFF, 2025 Employer Health Benefits Survey (as reported by Becker's Payer Issues, October 22, 2025).
If the news has your stomach in knots, our free 7-Day Money Anxiety Reset journal is a good first step.
Educational content only. Not personalised financial advice.