How The Severance Packages From Meta Amazon And Netflix Stack Up
Amazon became the latest tech company to lay off employees last Wednesday, cutting about 260 staffers, mainly from its devices division. The e-commerce giant plans to reduce its headcount by 10,000 jobs through 2023.
Tech layoffs have been headline fixtures in recent months as companies contend with rising costs due to inflation and declining revenue as wary customers cut spending ahead of a recession. Those left shouldering the brunt of this economic storm are rank-and-file employees.
More than 120,000 tech workers have lost their jobs so far this year, according to Axios. In an age in which internal communication doesn’t stay internal for long, layoff memos have provided great fodder for leadership critique and an inside look at how employers are trying to soften the blow—namely with hefty compensation and benefits packages.
Here’s how tech severance packages compare to one another.
Number of employees cut: 260 of a planned 10,000,
Compensation: Laid-off employees will receive one week of base pay for every six months at the company, up to 20 weeks. Registered stock units (RSUs) will continue to vest during that time period.
Health: Amazon extended health care coverage through January 17, 2023. Employees will also receive an additional $297 for each week of severance pay to be used for COBRA insurance when Amazon’s lapses.
Immigration: Employees weren’t given specific details about immigration support, a source told Fortune.
Other: Employees who received signing and relocation bonuses will not have to pay back the company, according to one ex-employee.
Number of employees cut: 11,000, 13% of workforce
Compensation: Employees will receive 16 weeks of pay and an additional two weeks for each year at the company, with no cap. Those with stock options scheduled to vest on November 15 received their full equity, though they were let go six days prior. Employees will also be reimbursed for unused PTO.
Health: Meta will pay premiums for employees and dependents for six months.
Immigration: Meta is providing “dedicated immigration specialists” for employees who aren’t U.S. citizens but did not specify what that entails.
Other: Employees will get access to job leads through an external vendor before they become public.
Number of employees cut: 700, 14% of workforce
Compensation: Sources tell Fortune that employees received 10 weeks of pay with an additional four weeks for those who’ve been at the company longer than four years. Those with stock options will receive this quarter’s equity, which vests on November 20.
Health: Health care coverage is extended through April 2023.
Immigration: There’s been no direct mention of immigration support, sources tell Fortune.
Other: Lyft provided access to a talent spreadsheet but “nothing more official than that,” according to an ex-staffer. Employees can also access the online learning platform Udemy through January 2023 and the telehealth platform One Medical through the end of this year.
Number of employees cut: 1,000, 14% of workforce
Compensation: Stripe employees received 14 weeks of pay. Those with longer tenures received additional pay, but Stripe didn’t publicize the length of employment required or specify the amount of pay. Workers will receive their 2022 bonus and be reimbursed for remaining PTO.
Health: Employees can choose to have Lyft cover their premiums for six months or receive that amount as cash.
Immigration: Employees will get free consultations with immigration experts to discuss their status.
Other: Stripe offered access to unspecified career support. The company will also offer discounts on Stripe products for employees who start a business.
Number of employees cut: 550, 18% of workforce
Compensation: Employees received 10 weeks of pay. Those who’ve been with the company longer than two years got an additional two weeks for every year of service.
Health: Health care coverage will continue for four months.
Immigration: Opendoor’s email to employees did not reference additional support for workers with sponsored visas.
Other: Opendoor launched an opt-in talent directory of laid-off employees that other companies can access.
Number of employees cut: 1,000,
Compensation: Full-time employees received one week of pay for every six months at the company. Stock options scheduled to vest in this six-month period will continue to do so. Microsoft extended the stock grace period for employees who’d been with the company 24 years or more.
Health: Microsoft will cover COBRA coverage premiums for six months for employees and their dependents.
Immigration: Documents reviewed by Fortune did not reference dedicated immigration support.
Other: Employees received job placement services for 16 weeks, the option to join a talent directory, and mental health support from Spring Health, which includes up to 12 therapy sessions.
Number of employees cut: 1,200, 20% of workforce
Compensation: Employees will receive four months of severance pay.
Health: Snap will offer health care plans through the end of December 2022.
Immigration: The company mentioned additional resources for U.S. workers on a visa but did not cite specifics.
Other: Snap created a talent directory for laid-off employees to connect with prospective employers.
Number of employees cut: 1,000, 10% of workforce
Compensation: Employees received a base severance pay of 16 weeks, with an additional week per year of service.
Health: Shopfiy is extending medical benefits, but it’s unclear for how long.
Immigration: Publicly available information did not mention targeted services for visa holders.
Other: The company is offering job placement benefits, including career coaching and interview support, and a talent directory. Shopify will also cover employees’ internet bills while they look for new jobs, provide a stipend to purchase a laptop, allow workers to keep home office furniture they bought with the company card, and provide free Shopify accounts for those who start their own company.
Number of employees cut: 450, 4% of workforce
Compensation: Employees received four months of pay split between two months of WARN Act benefits and two months of severance pay, sources told Fortune.
Health: Netflix extended health care coverage for two months.
Immigration: Netflix is not providing visa-holders with immigration support.
Other: Netflix offered job placement services, which one ex-employee characterized as “typical outplacement jargon, but nothing proactive.”
Number of employees cut: 3,500, 50% of workforce…and counting
Compensation: Employees tell Fortune they didn’t receive severance information when they were let go. Workers were told details would be shared this week but that’s now been postponed until after Thanksgiving due to recently filed litigation, according to sources. Employees shouldn’t hold their breaths for a large payout. Just Days into his acquisition of Twitter, Musk reportedly tried to get out of paying employees a regularly scheduled stock bonus by laying them off right before it was due. He reneged when he realized the cost of lawsuits would exceed the cost of the bonuses.