Imagine working in your organisation with utmost dedication, and one fine day you get a mail that your employment is being untimely terminated & you’re among hundreds of those getting laid-off cos your company just can’t afford you. Think about the pain, the agony, and the disappointment. Mass layoffs are brutal, and more so when they happen after you’ve given your all to a place for years.
Unfortunately, they aren’t uncommon. Economic uncertainties, minimising redundancies, and the need for restructuring are some commonly cited reasons by companies announcing mass firing in a single broadcast message. But letting go does not mean employees pack their bags and leave.
Companies give severance pay to terminated employees as ‘compensation’ for the abrupt termination of their tenure. Here’s how these big companies have compensated their employees after mass layoffs in 2022.
We begin with Twitter for obvious reasons. After Elon Musk took control of the social media company, he fired the top leadership, including the CEO, CFO, & others. He then ushered a spree of mass layoffs that seemed more distorted than usual since the man was legit firing people for tweeting against him. Scores of employees also opted for mass exodus after he warned them to commit to a ‘hardcore culture‘ or leave. Apparently, the laid-off employees were given three months of severance pay for the sudden termination of their tenure.
However, CNBC TV18 reported that Indian employees have been offered a two-month deal.
Amazon laid off scores of employees from the corporate rank in November amid uncertainties and fear about the macroeconomic environment. The New York Times reported that the firm has planned to sack 10,000 employees around the world.
Reportedly, the corporate rolled out a Voluntary Separation Program (VSP) for Indian employees to quit before November 30 in exchange for benefits. The severance package included 22 weeks of Base Pay, including a one-week base salary for every six months of service up to a maximum benefit of twenty weeks paid severance; along with medical insurance coverage for six months or an equivalent insurance premium amount.
Reportedly, Meta sacked 11000 employees across the globe from different departments. In an email to employees, Mark Zuckerberg took accountability for the decision and apologized to the impacted employees.
Apparently, the terminated employees received 16 weeks of base pay, including two additional weeks for every year in service, with no cap. The MNC also promised to provide immigration support, and cover health insurance for six months for all the laid-off employees and their dependents. The fired staff will also get three months of career support with “early access to unpublished job leads.”
Citing cost-cutting needs amidst a turbulent economic environment, Unacademy fired 10% of its workforce i.e., about 350 employees, in November. In an internal note sent to the employees, Unacademy co-founder and chief executive Gaurav Munjal apologized for retreating from the earlier promise to not lay off anymore.
Reportedly, the laid-off employees received severance pay equivalent to the notice period with two months of salary. The ed-tech company also promised to cover medical insurance for an additional year with a committed placement and career support for the impacted staff.
Last month, the ed-tech startup, BYJU’s announced mass layoffs for about 2500 employees to remove redundancies and enhance profitability. Basis an email cited by Business Today, the ed-tech platform asked employees to serve a 15-day notice period. However, BYJU’s hasn’t confirmed or denied this.
Additionally, the exit package included medical insurance coverage for the fired staff and their dependents. The company also established outplacement services to ensure impacted employees get suitable jobs.
Online payments giant, Stripe, announced a mass layoff for 14% of its employees from various divisions. Reportedly, CEO Patrick Collison sent an email to the employees announcing layoffs and stressing the need for cost-cutting to adjust to the newer economic conditions.
The laid-off employees were entitled to at least 14 weeks of pay. Additionally, the company promised to pay the annual bonus of 2022 with the unused PTO time. The severance pay also included the cash equivalent of 6 months of existing healthcare premiums with extensive immigration and career support to departing employees.
The latest addition to the layoff spree is the American multinational technology company HP. Apparently, somewhere between 4000 to 6000 HP employees will be laid off by 2025 as a part of their ‘Future Ready Transformation plan.’
CBS News reported that the layoff announcement included mentions of severance costs and early-retirement expenses. HP will pay around $1 billion to laid-off workers and early retirees over the next three years.
Edtech company Vedantu has laid off 700+ employees over the course of 2022 in different rounds of mass layoffs as a part of their business restructuring and cost-cutting exercises. Inc42 reported that the fired staff was entitled to a two-month salary as severance pay.
The US-based digital mortgage company, Better.com, grabbed headlines for mass firing scores of employees over a Zoom call last year. In March 2022, the company again fired around 3,000 employees in the most awful way possible when it ‘accidentally’ rolled out cheques before announcing mass layoffs. TechCrunch reported that the impacted employees received 60-80 days of payment.
Adding to the list, big startups like Ola, Meesho, Cars24, LEAD, WhiteHat Jr, and MPL also laid off scores of employees this year. While companies wanna survive profitably, such firings become brutal and unfair for the employees. Cos they are faultless.