Amazon, Meta, Microsoft and Twitter all cut jobs. This is the person who offers the most generous package
Tech companies continue to cut their headcount in an effort to cut costs as the economy contracts, providing multiple severance packages for the workforce.
Microsoft (MSFT) – Get a free reportThe tech giant founded by Bill Gates is the latest to join a wave of massive job cuts as slower revenue expected growth.
Software giant based in Redmond, Washington lay off 10,000 employees or 5% of its workforce on January 18.
While most tech companies seem to offer more than full severance packages that include salary and healthcare benefits for several months, employees at Meta Platforms (META) – Get a free report received the most generous offer of a minimum of four months’ salary paid.
Amazon (AMZN) – Get a free report is rumored to have provided three months of salary while Microsoft did not mention the length of the severance payments but only said it would provide “above market severance pay,” according to the CEO. published Satya Nadella in the filings of the United States Securities and Exchange Commission.
Microsoft is also offering health care coverage for six months, continuing to award stock awards for six months, and giving 60-day notice prior to termination, “whether such notice is legally required or not,” he said. “Benefits for employees outside of the US will be consistent with the labor laws in each country.”
The company said it also incurred a $1.2 billion charge in its fiscal second quarter related to severance costs, hardware portfolio changes and office leasing consolidation costs.
“These decisions are difficult, but necessary,” Nadella said. “We are committed to ensuring that all those who have been removed from their roles receive our full support during this transition.”
A tough time for technology
On the 4th of January Nadella speak The tech industry should be prepared for the next two challenging years. He said it will face more hurdles before it recovers.
“I would say the next two years are probably going to be the most challenging, because after all, you know, we’ve had a lot of acceleration during the pandemic and that demand has been normalized. to some extent,” Nadella said. CNBC.
Revenue growth is expected to slow, prompting other tech companies like Meta Platforms to cut 11,000 jobs, the first time since the social media giant’s founding in 2004. The commerce giant Amazon Electronics said it would cut more than 18,000 jobs.
one Platforms, the owner of Facebook, Instagram and WhatsApp, cut 13 percent of staff in November.
The social media company gives its workforce the ultimate in severance by offering 16 weeks of pay, plus two extra weeks for every year of service with no cap.
Meta CEO Mark Zuckerberg laid out a generous severance package for employees in a blog post. The company will pay all paid leave (PTO) and all participants of the restricted share unit (RSU) program will receive their bonus on November 15.
The company said Meta will continue to pay for six months of health insurance for both employees and their dependents, and provide three months of career support with an outside provider, including “rights early access to unpublished potential jobs”.
The company is also known for hiring employees who are working in the US because they have company-sponsored visas. The tech giant also offers immigration experts to provide guidance.
“I know this is especially difficult if you’re coming here on a visa,” Zuckerberg said. “There is a pre-termination notice period and some visa extension period, which means people will have time to plan and work through their immigration status.”
Continue to lay off Amazon employees
Amazon continued to lay off on January 18, for a total of 18,000, which is the largest number in its history.
According to CNBC, employees in some departments received “voluntary severance” offers in November of last year when the layoffs began.
The report said those employees received severance pay equal to three months’ salary, plus one week’s salary for every six months they worked at the company.
Amazon employees also receive a 12-week weekly allowance that can be used to pay premiums for COBRA premiums after their health coverage ends on December 31.
Twitter’s new CEO, Elon Musk, said he would offer three months’ salary upon severance, but some employees said they’ve only received one month so far, plus two months of non-working pay. Notice of Worker Adjustment and Retraining (WARNING) Action.
The WARN Act requires employers to give 60-day notice for layoffs that occur across the company.
A judge has ruled that a class action lawsuit from some employees who want more pay must be resolved by private arbitration instead of a signed employment contract with Twitter.