Imagine working hard in your organization and one-day receiving notification that your employment is being terminated prematurely and that you are among hundreds of those being laid off because your company simply cannot afford you. Consider the anguish, agony, and disappointment. Mass layoffs are especially painful when they occur after you have given your all to a company for years.
They are, unfortunately, not uncommon. Companies that announce mass layoffs in a single broadcast message frequently cite economic uncertainty, the need to reduce redundancies, and the need for restructuring. However, letting go does not imply that employees pack their belongings and leave.
Severance pay is given to terminated employees as “compensation” for their abrupt termination. Here’s how these large corporations compensated their employees following mass layoffs in 2022.
1. Twitter
For obvious reasons, we begin with Twitter. Elon Musk took over the social media company and fired the top executives, including the CEO, CFO, and others. He then initiated a wave of mass layoffs that appeared more distorted than usual, given that the man was legitimately firing people for tweeting against him. Hundreds of employees also left in droves after he warned them to either commit to a “hardcore culture” or leave. The laid-off employees were reportedly given three months’ severance pay for their abrupt termination.
2. Amazon
Amazon laid off a large number of corporate employees last week, citing uncertainty and concern about the macroeconomic environment. According to the New York Times, Amazon plans to lay off 10,000 employees worldwide.
According to reports, the company implemented a Voluntary Separation Program (VSP) to encourage Indian employees to leave 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; medical insurance coverage for six months or an equivalent insurance premium amount; and medical insurance coverage for six months or an equivalent insurance premium amount.
3. Meta
According to reports, Meta fired 11000 employees from various departments around the world. In an email to employees, Mark Zuckerberg accepted responsibility for the decision and apologized to those affected.
The terminated employees will reportedly receive 16 weeks of base pay, plus two weeks for every year of service, with no cap. The MNC also promised to provide immigration assistance and health insurance coverage for all laid-off employees and their dependents for six months. The fired employees will also receive three months of career counseling and “early access to unpublished job leads.”
4. Unacademy
Unacademy laid off 10% of its workforce, or approximately 350 employees, in November, citing cost-cutting needs in an uncertain economic environment. Unacademy co-founder and CEO Gaurav Munjal apologized to employees in an internal note for breaking his earlier promise not to lay off any more employees.
According to reports, the laid-off employees received severance pay equal to the notice period plus two months’ salary. The ed-tech firm also promised to cover medical insurance for an additional year in exchange for a committed placement and career support for the affected employees.
5. BYJU’s
BYJU’s announced mass layoffs for approximately 2500 employees last month to eliminate redundancies and increase profitability. According to an email obtained by Business Today, the ed-tech platform requested that employees serve a 15-day notice period. BYJU’s has not confirmed or denied this.
In addition, the termination package included medical insurance coverage for the fired employees and their dependents. In addition, the company established outplacement services to ensure that impacted employees find suitable jobs.
6. Stripe
Online payments company Stripe announced a mass layoff of 14% of its employees across multiple divisions. According to reports, CEO Patrick Collison sent an email to employees announcing layoffs and emphasizing the importance of cost-cutting to adjust to the newer economic conditions.
Employees who were laid off were entitled to at least 14 weeks of pay. Furthermore, the company promised to pay the 2022 annual bonus with unused PTO time. Severance pay also included the cash equivalent of six months’ worth of existing healthcare premiums, as well as extensive immigration and career counseling for departing employees.
7. HP
HP, an American multinational technology company, is the most recent layoff victim. According to reports, as part of their ‘Future Ready Transformation plan,’ between 4000 and 6000 HP employees will be laid off by 2025.
According to CBS News, the layoff announcement mentioned severance pay and early retirement costs. Over the next three years, HP will pay out approximately $1 billion to laid-off employees and early retirees.
8. Vedantu
Education technology firm Vedantu has laid off 700+ employees in various rounds of mass layoffs throughout 2022 as part of their business restructuring and cost-cutting exercises. According to Inc42, the fired employees were entitled to a two-month salary as severance pay.
9. Better.com
Better.com, a digital mortgage company based in the United States, made headlines last year after firing a large number of employees during a Zoom call. In March 2022, the company fired approximately 3,000 employees in the most heinous way possible when it ‘accidentally’ distributed cheques before announcing mass layoffs. According to TechCrunch, the impacted employees were paid within 60-80 days.
Adding to the list, major startups such as Ola, Meesho, Cars24, LEAD, WhiteHat Jr, and MPL laid off a large number of employees this year. While companies strive to remain profitable, such firings can be brutal and unfair to employees. Because they are flawless.
