A layoff notice from Visa starts several time-sensitive clocks that most employees don't know about. On July 28, 2026, Visa announced it's cutting approximately 2,600 jobs, about 7% of its global workforce, with the company pointing to AI-driven operational changes as the main reason. Visa also recorded a $563 million restructuring charge tied to the cuts. If you're affected, the decisions you make in the next few days and weeks will have real financial consequences. This guide covers each one, in deadline order.

What happened

Visa announced the cuts on July 28, 2026, as part of a restructuring driven by what the company describes as AI-driven operational evolution. The reduction affects roughly 2,600 employees globally, representing 7% of the total workforce. Visa booked a $563 million charge in connection with the job cuts. Specific severance terms for affected employees have not been publicly disclosed.

What should you do about unemployment insurance?

Unemployment insurance is a weekly cash benefit paid by your state while you look for work. You apply through your state's workforce agency, and the money is not retroactive. That means if you wait two weeks to file, you lose two weeks of benefits. File on your last day, or the morning after.

Most Visa employees are based in California or work under California jurisdiction. File at edd.ca.gov. California's maximum weekly unemployment benefit is $450, per the California Employment Development Department. You'll need to verify your identity during the application, so have your ID ready. The state typically uses ID.me for identity verification.

If your work location is outside California, file in the state where you physically worked, not where Visa is headquartered. Each state has its own weekly benefit cap and waiting period rules, so check your state's workforce agency website directly. California has no waiting week requirement in 2026, meaning your first eligible week is your first week of unemployment.

Should you sign the severance agreement right away?

No. Read it first, and take the time the law gives you.

Under the Older Workers Benefit Protection Act (OWBPA), if you're 40 or older, you must be given at least 21 days to review an individual severance agreement before signing. Because this is a group layoff affecting 2,600 employees, that window extends to 45 days, per the EEOC. After you sign, you have 7 additional days to revoke your signature. The agreement isn't binding until that 7-day window closes.

Even if you're under 40 and the OWBPA doesn't apply to you, don't rush. Severance agreements often include non-compete clauses, non-disparagement language, and waivers of claims you may not realize you have. A few things worth checking: whether your severance amount is negotiable, whether you're being paid for unused PTO, and whether any equity acceleration is tied to signing. Some of that is negotiable, even in a large layoff. HR can rescind an offer that hasn't been signed, so there's a balance to strike, but you don't have to sign on day one.

Don't sign anything before you've reviewed the full agreement, including the exhibits. If you're 40 or older, you have the legal right to take your time. Use it.

What should you do about health insurance?

Health insurance is one of the most time-sensitive decisions you'll face after a layoff, and you have two real options: COBRA and the Marketplace. Both have 60-day windows that start when you lose employer coverage.

COBRA lets you keep your existing Visa health plan, but you pay the full premium, including the portion Visa was covering, plus a 2% administrative fee. The average individual COBRA premium in 2026 runs about $703 per month, according to KFF. Family coverage costs significantly more. That said, COBRA has one useful feature: you don't have to elect it immediately. You can wait up to 60 days, and if you end up needing care during that window, you can elect COBRA retroactively and pay the back premiums. This is useful if you're healthy and want to wait to see if you land a new job with benefits.

The Marketplace is your other option. Losing employer coverage is a qualifying life event that triggers a 60-day Special Enrollment Period, per healthcare.gov. Depending on your income this year, you may qualify for a premium subsidy that makes Marketplace coverage significantly cheaper than COBRA. You can compare plans at healthcare.gov or covered.ca.gov if you're in California.

The decision comes down to cost and continuity. If you have ongoing care with specific providers or prescriptions that require your current plan's network, COBRA may be worth the cost. If you're relatively healthy and want to lower your monthly expenses, check the Marketplace first.

What about your equity and stock options?

Visa is a publicly traded company, so equity is relevant for a significant portion of affected employees. The rules differ depending on what type of equity you hold.

If you have Incentive Stock Options (ISOs), you have 90 days from your termination date to exercise them and keep the favorable ISO tax treatment under IRC Section 422. After that 90-day window closes, any unexercised ISOs convert to non-qualified stock options (NQSOs), which are taxed as ordinary income when exercised rather than receiving capital gains treatment. The 90-day clock starts on your actual last day of employment, not on the announcement date.

One additional consideration for ISOs: exercising them can trigger the Alternative Minimum Tax (AMT), depending on the spread between your strike price and the fair market value at exercise. This is worth modeling before you exercise, especially if you're looking at a large position. The AMT calculation is complex enough that many people find it worth talking to a tax professional before acting.

If you hold Restricted Stock Units (RSUs), unvested RSUs are typically forfeited at termination unless your equity agreement or the restructuring terms say otherwise. Any RSUs that vested before your termination date are yours; you've already recognized income on those. Check your equity award agreements carefully, and review any company communications about accelerated vesting as part of the restructuring.

Non-qualified stock options (NQSOs) usually have a shorter post-termination exercise window specified in your grant agreement, often 90 days as well, but the terms vary. Check your grant agreement for the exact window.

What about taxes on your severance?

Severance is taxed as ordinary income. The IRS classifies it as supplemental wages, which means it's subject to a flat 22% federal withholding rate on the first $1 million, per IRS Publication 15. That 22% is a withholding rate, not your actual tax rate. If your total income for 2026 puts you in a higher bracket, you may owe additional tax when you file.

California also taxes severance as ordinary income at the state level. Combined with federal tax, your effective tax rate on severance could be meaningfully higher than the 22% withheld upfront.

If you exercised stock options this year or received a large lump-sum severance payment, you may need to make an estimated tax payment to avoid an underpayment penalty. The Q3 2026 estimated tax deadline is September 15, 2026, per the IRS. If you received your severance before June 15, the Q2 deadline has already passed, so Q3 is your next checkpoint. Check your withholding situation sooner rather than later so you're not surprised when you file.

What are your options for your 401(k)?

A 401(k) rollover is the process of moving your retirement savings from your former employer's plan to another tax-advantaged account after you separate. You have a few options, and the rules matter.

The cleanest move is a direct rollover: you instruct Visa's plan administrator to transfer your balance directly to an IRA or your new employer's 401(k) plan. No taxes withheld, no deadline pressure. This is almost always the right approach for most people.

If you take an indirect rollover (meaning the plan cuts you a check), you have 60 days from the date of distribution to deposit the full amount into a qualifying account, per IRS rollover rules. The plan will withhold 20% for taxes upfront. You have to deposit the full original amount, including the 20% withheld, to avoid a taxable event. That means you'd need to come up with the withheld portion out of pocket and reclaim it later from your tax refund. Most people don't want to do this.

You can also leave the money in Visa's plan temporarily if your balance is above $5,000; employers are not required to keep smaller balances. There's no immediate tax consequence to leaving it, but you won't have access to new contribution options, and investment choices may be limited compared to a rollover IRA. Review the post-layoff checklist on the Layoff HQ site for a full 401(k) decision framework.

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

The Layoff Guide

The deadlines above apply whether or not you are tracking them. The Layoff Guide from Layoff HQ is a 33-page field guide that covers all twelve post-layoff deadline events in the order they arrive: unemployment, the severance review and revocation windows, COBRA and the Marketplace, your FSA, your equity window, your 401(k), and your taxes. Each event comes with timed checkpoints, the decision math, and the one mistake that costs people the most, plus a fill-in worksheet that turns your last day worked into your complete personal deadline calendar. One-time purchase. No subscription. Instant download, with a 14-day full refund if it is not useful.

Get The Layoff Guide, $39 or build your free Decision Calendar.