Meta Layoff 2026: What Washington State Employees Need to Do This Week

What happened

A layoff notice from Meta starts several time-sensitive clocks that most employees do not know are running. Meta filed a WARN notice with the Washington State Employment Security Department on May 23, 2026, listing 1,395 permanent separations across four locations: Bellevue (699 employees at the Spring District office), Seattle Dexter Avenue (215), Seattle Utah Avenue (44), Redmond (206), and 231 remote workers in Washington state.¹ Workers were notified May 20. Last day is July 22, 2026.

The cuts are part of a global reduction of approximately 8,000 employees, roughly 10% of Meta's total workforce, tied to the company's shift toward AI infrastructure. Software engineers and engineering managers were the hardest-hit roles in Washington, followed by technical program managers and data roles. Meta employed approximately 7,000 people in the Seattle region before the cuts. These layoffs represent about 20% of that local workforce.

What should you do before you sign anything?

Your severance agreement is the first thing that needs your attention, and the most important thing you can do right now is not sign it.

Because this is a group layoff involving hundreds of employees at similar job levels, federal law under the Older Workers Benefit Protection Act (OWBPA) applies to anyone 40 or older. You have 45 calendar days to review the agreement. The company cannot pull the offer during that window regardless of what HR says about internal deadlines.⁴

If you are under 40, there is no federal minimum, but check the agreement itself for the deadline stated in the document. Most companies give 7 to 21 days voluntarily.

Four things are commonly negotiable even in mass layoffs: the severance amount, the length of any COBRA premium support the company offers to pay, the reference language, and whether the company agrees not to contest your unemployment claim. Most people never ask. Most companies will move on at least one of these points if asked professionally in writing.

Use the free post-layoff checklist to track everything you need to review before you sign.

When should you file for unemployment?

File on July 22, your last day, or the next business day. Do not wait.

Washington's benefit year starts the Sunday of the week you file your initial claim at esd.wa.gov. If you wait one week after your last day, you permanently lose that week of benefits. You cannot go back and claim it later.

The maximum weekly benefit in Washington for 2026 is $1,152. The minimum is $366. Your actual benefit is based on the two highest-earning quarters of your base period divided by 52, calculated by the Washington State Employment Security Department.²

You will need your Social Security number, 18 months of employment history, and bank account information for direct deposit. The ESD system is available 24 hours a day at esd.wa.gov. After filing, you must submit a weekly certification confirming you are searching for work. Missing a weekly certification means missing that week's payment.

Washington has no waiting week for benefits, but ESD typically takes 2 to 4 weeks to process a new claim and issue the first payment. File immediately on your last day. Do not wait until you feel ready.

Note: you are still employed and receiving wages through July 22. You cannot file a UI claim before your last day. Use the 63 days between now and July 22 to gather your paperwork and plan your filing date.

What about your health insurance?

Your Meta health coverage continues through July 22. When it ends, you have two options: COBRA or the Marketplace.

COBRA lets you keep your exact Meta plan. The election window is 60 days from the date coverage ends, and COBRA election is retroactive. That means you can wait until day 55, see whether any medical need arises, and still elect coverage back to day one if you need it.³ You do not have to decide on July 22.

The catch is cost. COBRA premiums for employer-sponsored coverage average $703 per month for an individual. Meta was covering a large share of that cost. Under COBRA, you pay the full premium plus a 2% administrative fee.

The Marketplace is often cheaper. Open a Special Enrollment Period at healthcare.gov within 60 days of losing Meta coverage. If your 2026 income falls below your pre-layoff salary, premium subsidies may bring the monthly cost to $0 to $250 for an individual plan.

Do not elect COBRA on July 22 unless you have an active medical situation. The retroactive election rule means you have time to evaluate your options before committing to the higher premium.

Do you have RSUs or stock options?

Meta grants RSUs to most employees. Termination affects your equity in a specific way.

Unvested RSUs are forfeited on your termination date. Any RSU tranche scheduled to vest before July 22 will pay out on its normal schedule. Log into Fidelity NetBenefits this week and pull your complete vesting schedule. If you have tranches vesting in June or early July, confirm those will process before your last day. That is real money.

RSUs are taxed as ordinary income in the year they vest. Meta withholds taxes at vesting. If you have had RSUs vest in 2026, factor that income into your estimated tax calculation below.

If you hold stock options rather than RSUs, incentive stock options (ISOs) have a 90-day window after your last day to be exercised before they convert to non-qualified stock options. Non-qualified options are taxed as ordinary income at exercise rather than potentially qualifying for the more favorable long-term capital gains rate.⁶

What about the taxes on your severance?

Meta will withhold federal income tax on your severance at the 22% supplemental wage rate, which is the flat rate the IRS requires for lump-sum payments.⁵ Your actual marginal rate may be higher depending on your total 2026 income. Engineers and managers at Meta often have marginal rates of 24%, 32%, or higher once RSU income is included.

Washington has no state income tax. You do not owe the state anything on your severance payment.

Because your last day is July 22, your severance payment falls in Q3 of 2026. The federal Q3 estimated tax payment is due September 15, 2026. If Meta withholds at 22% but your marginal rate is higher, consider making an additional estimated payment by September 15 to avoid an IRS underpayment penalty.

What about your 401(k)?

After July 22, you have three options for your Meta 401(k): leave it in Meta's plan if the plan rules allow, roll it to a new employer's plan when you start your next role, or roll it to an IRA.

If you take a direct rollover, there is no tax consequence. The custodian sends funds directly to the new account.

If you take an indirect rollover (the check comes to you personally), you have 60 days to deposit it into a qualifying account. Miss that window and the IRS treats the entire amount as a taxable distribution, plus a 10% early withdrawal penalty if you are under 59.5 years old.

Take the direct rollover. Call Fidelity or whoever administers your Meta 401(k) to start the paperwork before July 22. Do not wait until after your last day.

Deadlines and rules described here reflect federal law and general state guidelines as of the article date.