Following along with this, I find the real hits to self-worth post layoff are in the process of finding that next job. Even when you have a job, a serious job search can be exhausting and, depending on the feed back you're getting, really whittle away at self confidence.
But when you can feel the financial timer ticking, you continually start to question yourself and, dangerously, drop your standards. Desperation is a serious trap that can easily lead you to a situation where you are less likely to succeed (despite believing that dropping standards will increase you chances), leading to even further anxiety and insecurity. It's one thing to get rejected from a dream job, but getting rejected from something you internally think is beneath you really stings. Ironically I've found it's in desperate times that confidence and self respect is the most valuable. Clearly, this is much easier said then done.
For people with some financial buffer, you can afford the time to clear your head, and focus on finding something that will lead you to success. Without it, it's possible to have someone who could otherwise end up working for a place like Anthropic getting rejected from a small town startup offering half their previous pay (being a bit hyperbolic here, but I've seen situations like this narrowly avoided).