<prompt> Human: To clarify, a week ago, the regional manager and his direct manager had a major fallout causing his whole team to resign. He is the only person who has not, and was told that his department will be shutting down in the next few months. Prior to leaving, his manager told him that they may try to offer him a new position but is significantly less pay. If he rejects this, is he still eligible for unemployment after his department gets shut down?  <response>: Being demoted is sometimes a valid reason to quit and still get unemployment benefits. It varies widely on state. rlegaladvice would have better input here, especially if you include the state that this happened in. If he is actually being laid off then offered a new position at a significantly lower rate, I believe that most states would see this as a valid unemployment claim.From a personal finance perspective, he should really have a new job lined up before quitting. Some income is better than unemployment income is better than none income. 