I have friends at a large public company that are going through layoffs. Towards the end of December 2023 they were notified of layoffs. Now, I know different people got different “deals” but one of them, for example, was told her position would be eliminated in July 2024. Then, given her tenure, her severance would cover to the end of the year.
What are the business benefits / reasons for laying someone off with 7 months notice and then six months of severance? How does that affect the books / financials for 2024 and beyond?
In: Economics
Not quite the same maneuver but definitely the same cost-cutting motivation: If your boss assigns a younger (i.e. cheaper) protégé to work with you on a project to “shadow you”, take that as an indication you are training the person who will be replacing you – and they’re probably less expensive than you.
Usually, in my experience, they are outsourcing jobs overseas and need the current staff to train their replacement.
So they make the severance attractive so people will stay until the transition instead of quitting before the transition.
It’s basically so they can stagger out their WARN notices and not get a major news announcement that they’re paying off a lot of people. Like they give 400 people notices a month for 12 months that have staggered termination dates. News papers wont run an article of 400 people. But they will for 5k people. It’s to avoid the bad news making headlines.
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