Google headquarters in Mountain View, California, US on September 26, 2022. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images)
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Technology companies have fired tens of thousands of workers in recent months as the industry grapples with a reduced risk appetite from investors and increased borrowing costs. Laid-off employees in the technology sector are entering an uncertain job market as the number of employees is cut across all skill levels and teams. Few companies, with possible exclusion of Applereceived immunity.
Dismissed workers will receive severance packages of varying size and length depending on where they work. Here’s what some of the biggest names in tech have promised their employees.
CEO Sundar Pichai said on Friday Google plans to lay off 12,000 employees by “product areas, functions, levels and regions”. The laid-off U.S. employees will be paid during the notice period and will receive 16 weeks of basic severance pay, with an additional two weeks for each year they worked at Google, Pichai said in a memo to employees.
The laid-off employees will also receive “at least” 16 weeks of accelerated stock vesting and 6 months of health insurance, he said.
A Submission of documents to the Securities and Exchange Commission of Google parent Alphabet shared a memo from Pichai but did not specify the cost of the layoffs.
on wednesday Microsoft said it was laying off 10,000 employees as the software maker expected slower revenue growth next year. The cuts will continue through the end of March, and a spokesperson told CNBC that sales and marketing will see more severe cuts than engineering.
This was stated by CEO Satya Nadella employee memo which some will find out this week when they lose their jobs.
U.S. workers who are eligible for benefits must receive severance pay, six months of health care and stock options, and 60 days of notice, Nadella wrote. Microsoft’s CEO has already hinted at possible cost-cutting efforts in an interview with CNBC-TV18.
“We will also need to focus on keeping our spending in line with revenue growth,” Nadella said. said.
Microsoft will take a $1.2 billion impairment charge as a result of the restructuring and layoffs.
Amazon has been going through periodic layoffs since last year. In November it is job cuts have begun which primarily affected divisions such as recruitment, tools and services. At that time, the company offered its devices and services employees severance pay, which included separation pay, transitional health care benefits and employment.
Earlier this weekit has embarked on its latest wave of layoffs, with the biggest cuts felt in its retail and human resources divisions.
For U.S. retail employees, Amazon is offering full pay and benefits for a 60-day period where Amazon will continue to keep them on the payroll, but they are not expected to continue working. After that period, Amazon will offer laid-off employees several weeks of severance pay based on length of service with the company, severance pay, transitional health benefits and employment.
Amazon’s severance benefits are similar for affected employees in other divisions. Chief Human Resources Officer Beth Galetti said the company will offer severance pay, health benefits depending on country and employment.
It’s unclear whether Amazon’s severance package includes any provisions that would allow employees to accelerate the payment of stock compensation. This is important for Amazon employees, as the company’s compensation has historically been heavily weighted toward equity. An Amazon representative did not immediately respond to a request for comment.
CEO Marc Benioff told employees on Jan. 4 that Sales department reduce the head count by about 10%, or more than 7,000 workers, in response to challenging economic conditions. The laid-off employees will receive a minimum of “almost” five months’ salary. Benioff’s letter to employees also said that laid-off employees would receive health insurance assistance and career development resources.
A spokesperson told CNBC that the severance package will include six months of health insurance and “a minimum of two months of employment support.”
Some employees who lost their jobs were notified the same day.
“Those outside the US will receive a similar level of support,” Benioff wrote. The company expected impairment charges of between $1 billion and $1.4 billion related to severance payments and “employee transitions,” according to the filing. the 8-K document.
Benioff the employees said A few more days after the announcement of the January layoffs, new layoffs may begin.
CEO Mark Zuckerberg made the announcement on November 9 more than 11,000 jobs will be cut as part of an effort to become a “leaner and more efficient company.” Meta the stock had been badly hurt in the months before, and investors had become more critical of Zuckerberg’s expensive pivot to virtual reality.
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., center, leaves federal court in San Jose, California, U.S., Tuesday, Dec. 20, 2022.
David Paul Morris | Bloomberg | Getty Images
At the time, Zuckerberg promised “each” laid-off employee 16 weeks of severance pay, plus two weeks for each year of service, as well as RSUs and health insurance for a predetermined period of time.
In December 2022, some laid off workers from a non-traditional training program told CNBC that they received substandard severance packages compared to other recently laid-off employees. Instead of Zuckerberg’s promised 16 weeks, they received only 8 weeks of base pay, among other significant differences.
Redundancies at Twitter began shortly after Elon Musk completed a takeover deal in 2022. Twitter was expected to fire more than 3,700 employees, or more than 50% of its workforce. in the end many more employees quit after Musk announced that Twitter employees would be required to “hardcore“work environment.
Under the terms of Musk’s buyout agreement, existing exit agreements had to be honored by new management. But a group of Twitter employees filed suit in Novembershortly after his firing, accusing Twitter of firing him in violation of California’s severance law.
Mask had said before that the fired employees will receive three months of severance pay, but some Twitter employees argued that in exchange for a non-disparagement agreement and a legal waiver, Twitter is only offering them one month of severance.
The class action lawsuit was renewed shortly after the filing alleging that Twitter offered some of the laid-off employees half of what they were promised.
Twitter also laid off more than 4,000 contract workers without notice, CNBC reported reported earlier.
CNBC’s Annie Palmer, Jonathan Vanian, Jennifer Elias, Jordan Navet, Laura Kolodny, Ashley Capote and Sophia Peet contributed to this report..
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