The big picture: Many tech companies saw record profits during the pandemic, prompting them to increase investment and rapidly expand their staff. However, amid growing concerns about a global recession, more and more companies have recently announced mass layoffs affecting thousands of employees.
In the first three weeks of this year, more than 100,000 tech workers lost their jobs. A new report shows that compensation packages vary widely from one tech giant to another.
on friday alphabet, on Google parent company, announced the layoffs of 12,000 employees, representing about 6% of its global workforce. According to a statement from the Securities and Exchange Commission, the severance package for US employees includes 16 weeks of salary and accelerated stock vesting, as well as an additional two weeks for each year of service with the company. The fired employees will also receive their 2022 bonuses, paid vacation and six months of medical care.
At the start of the year, Amazon confirmed it planned to cut a record 18,000 jobs, or about 1.2% of its total workforce. Retail workers in the United States will receive full wages and benefits during the mandatory 60-day notice period without having to continue working. The company will also offer several weeks’ compensation, compensation, temporary health benefits, as well as employment.
Meta CEO Mark Zuckerberg announced last year that the company would cut more than 11,000 jobs worldwide, representing about 13 percent of its workforce. The sacked employees were promised 16 weeks’ severance pay, plus two additional weeks for each year of service. The company said it will also cover their health insurance for six months and offer vesting of RSUs, career services, remaining paid leave and immigration support for employees on visas.
Salesforce recently announced it would lay off more than 7,000 employees, and CEO Marc Benioff suggested younger remote workers may be to blame for the company’s declining productivity. The severance package includes at least five months of salary, six months of health insurance and two months of severance benefits.
CEO of Twitter Elon Musk initially planned to cut staff by 50 percent after taking over last year, although many chose to leave rather than stick to the new “hardcore” work culture. Musk later said that all those leaving were offered a three-month severance package.