Overcoming the Shock of Executive Career Disruption

Leaders confronting major career disruption sometimes feel like they’re burying a lifelong career. How can resilient executives reframe unexpected change as the dawn of reinvention, where new possibilities begin?

While having a professional career once carried with it the promise of long-term security, it’s no longer unusual for executives to face unexpected career disruption. Encountering detours and obstacles has become a defining feature of leadership in a corporate world constantly affected  by uncertainty and change.  

Market and geopolitical volatility, organizational restructuring, investor pressure, and the acceleration of AI are just a few of the issues reshaping boardrooms and executive suites across various industries. In 2024 alone, more than 200 global CEOs left their posts – a record high that highlights how instability continues to grow within even the most senior levels of leadership. 

Charles Martin, Managing Partner at Signium in London, shares his thoughts on the matter:

“For  leaders experiencing this disruption, the personal impact can feel seismic. A sudden exit, whether voluntary or forced, doesn’t just shake professional identity. It can also rattle financial security, relationships, and personal well-being. The first days and weeks after a career break are often marked by feelings of disorientation: What now? Where do I start?” 

At this stage survival and recalibration matter most. It’s about acknowledging the shock, protecting your immediate stability, and preparing to reframe what comes next. 

The first 3 steps to finding ground under your feet 

When a career disruption hits, one’s instinct is often to react quickly, and sometimes hastily. Yet rather than focusing on acting with speed, there’s often value and wisdom in taking the time to approach the future with steadiness.  

In the immediate few days and weeks, leaders in the midst of a disruption should think less about the next big move and more about regaining their footing. A clear, structured response helps create a sense of control, and the right decisions made now will set the foundation for a healthier, more strategic comeback. 

1. Assess finances early 

Executives often assume they have more time than they do. While severance packages or accumulated savings may provide a buffer, this is the moment to map household liquidity.  

“It’s difficult to confront finances without panicking,” says Martin, “but it’s an important step toward establishing clarity about the immediate future. Outline your recurring commitments, discretionary expenses, and how long you can sustain yourself without new income.” 

2. Refresh professional materials 

It goes without saying that executives navigating a career break will need to update their CV and LinkedIn profile to reflect their most recent role and achievements. However, this isn’t just a tactical step – it’s also psychological. Seeing their experience laid out in a clear, forward-facing way helps to shift a leader’s mindset from “I’ve lost something” to “I have something really valuable to offer.” 

3. Inform a trusted network first 

For leaders encountering major occupational changes, an executive network can serve as a career lifeline and a valuable support system. However, rather than taking a “send-to-all” approach, Martin urges executives to approach their network strategically: “Start with a small circle of confidants, such as mentors, peers, or advisors, before expanding outward. This allows you to test your exit narrative and refine it for broader audiences, where rapport still needs to be established.”  

Finding financial stability while income is on hold 

Even at the highest levels of leadership, financial disruption is one of the most pressing anxieties after an unplanned exit or change. While executives may have substantial earnings histories, lifestyle inflation and complex obligations can leave them surprisingly vulnerable to financial challenges. 

Practical steps to creating stability include: 

• Creating a revised budget – Stripping finances down to essential expenses and identifying areas where outflows can be reduced without eroding quality of life. 

• Reviewing contractual obligations – Equity, deferred compensation, or non-compete clauses often provide either support or constraints that must be factored into financial decisions. 

• Exploring interim opportunities – Advisory work, board roles, or short-term consulting projects can generate income while also maintaining visibility in the industry. 

The executives who manage disruption most effectively are those who take ownership early, making conscious choices rather than being swept along by circumstance. Although a period of financial disruption presents a real setback, addressing budgetary concerns swiftly positions leaders to focus on exploring opportunities as quickly as possible.  

Mental health and well-being: Navigating an invisible emotional toll 

In the words of psychiatrist and holocaust survivor Viktor Frankl, “When we are no longer able to change a situation, we are challenged to change ourselves.” This is why career disruption often feels disorienting. This is not only because of financial or logistical change, but because our role frequently shapes our identity. When that role disappears or changes, part of who we are can feel cast adrift. 

Research from Harvard Business Review considers the concept of lingering identities – the idea that we carry parts of our prior roles with us when transitioning, and that this can complicate the psychological process of moving on. These ghostly traces of past identities mean we aren’t starting from a blank slate. Instead, we’re negotiating who we are in relation to who we once were. 

What helps leaders manage loss of identity? 

For executives, these emotions are especially pronounced. Titles, responsibilities, and professional routines often become deeply intertwined with self-image. When those are removed, leaders don’t simply confront a career change. They face what can feel like an identity crisis. 

“Part of the challenge is that the emotional toll feels like an invisible adversary,” says Martin. “When something feels immeasurable, it can also feel insurmountable. Reframing these emotional experiences as tangible allows executives a better perception of what they’re facing. Being able to measure an emotion removes its mystery and makes it infinitely less powerful.”  

• Acknowledge the emotional complexity 

Recognizing that lingering identities exist and that they can feel destabilizing helps normalize the emotions that follow disruption: anxiety, self-doubt, or a sense of loss. 

• Create space for transition 

Identity isn’t rebuilt in an instant. Pausing to reflect can ease the internal friction between who a leader once was and who they are becoming. Easy methods, such as journaling, mentorship, or quiet contemplation, can support this process in a tangible, material way.  

• Talk it through 

Sharing the experience with trusted peers or coaches can be a clarifying mirror. Hearing how others navigated their own lingering identities also makes the journey feel less isolating and more manageable. 

Control the narrative by clear and careful communication 

One of the most complex tasks following a career disruption is finding the right words to explain what happened. Whether a leader leaves as part of a restructuring, steps down amid investor pressure, or exits for personal reasons, how they tell the story matters. 

Three principles can guide this process: 

1. Maintain professional transparency 

Executives must avoid the temptation to obscure or over-explain the situation. A simple, factual account is often enough, such as “the company underwent restructuring” or “leadership alignment shifted”.  

2. Practice balanced positivity 

Acknowledging the reality without bitterness helps to frame the exit as part of a larger career arc rather than an isolated failure. 

3. Preserve relationships 

Even in tense circumstances, executives must protect their references and reputation. The global workplace is more interconnected than ever before, and burned bridges resurface in unexpected ways. 

“Think of your exit narrative as the opening chapter of what comes next,” says Martin. “It should be authentic and concise. Most of all, it should be positioned professionally and positively, even if it doesn’t feel that way at the time.” 

Embracing the break: How to plant the seeds of renewal 

Although the initial period of disruption can feel like pure survival, it’s also the moment when a subtle yet powerful shift can begin. Instead of asking, “How do I get back what I’ve lost?” leaders can start asking, “What can I build from here?” 

Executives who use their break as an intentional pause often discover opportunities for growth that may come in numerous forms:  

• Time to pursue neglected interests 

• Capacity to deepen industry knowledge 

• A pause to simply restore energy 

• Headspace to reimagine the future differently  

The forced stillness of a career disruption can become fertile ground for renewed purpose, and the first stage of that transformation is mindset. Embracing disruption as an opportunity is easier said than done, but it is possible.  

Consider the story of John Tarnoff, a former Hollywood film producer and entertainment executive. When a tech startup he co-founded collapsed in the dot-com bust, his career seemed to unravel overnight. Rather than rushing to replace what he had lost, Tarnoff took a step back. At age 50, he returned to school for a master’s degree in spiritual psychology, using the pause to redefine his sense of purpose. 

That recalibration laid the foundation for a new chapter. By 2006, Tarnoff was leading show development at DreamWorks Animation, where he designed leadership training and university outreach programs that helped the company become known as a top workplace in the industry. From there, he transitioned even further into academia as a professor at Carnegie Mellon University, while also building a coaching practice focused on mid and late-career professionals. His book, Boomer Reinvention: How to Create Your Dream Career Over 50, and his recognition as a Top Influencer in Aging by PBS/NextAvenue, underscore his influence in reframing how leaders can thrive after disruption. 

“Even as a successful executive, John Tarnoff was forced to reinvent himself,” says Martin. “Today, he continues to thrive as a coach, guiding other executives through transition. His journey shows us that disruption is not an ending, but a moment to pause, reflect, and re-strategize, with the potential to re-emerge stronger.” 

Executive career disruption is a catalyst for reinvention 

The immediate aftermath of career disruption is both daunting and defining. Leaders who ground themselves in practical steps, like achieving financial clarity, refreshing professional tools, and drawing on supportive networks, while also tending to the emotional shock, create the conditions for renewal. 

“A disruption must never become the full story,” says Martin. He adds:

“It’s just the next chapter, and maybe the first of your next grand adventure.” Disruption can become the catalyst for reinvention, but only when the initial shock is met with steadiness, self-empathy, and – most of all – the courage to begin again.