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
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.
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