Layoffs in the tech industry continue to pile on as we settle into 2023. The wave of hiring freezes and layoffs picked up full steam in 2022 with large tech companies firing more than 5-20% of their work force. Many believe the job cuts are in major part due to over hiring and over paying for talent during the height of the pandemic. Firms hired aggressively to capitalize on the demand for online purchases and social media use during lockdowns.
These mass layoffs were seen recently at big name tech firms, such as:
- Amazon, which cut 18,000 employees
- Microsoft, which cut 10,000 employees
- Salesforce, which cut 8,000 employees
- Meta, which cut 11,000 employees
- Google, which cuts 12,000 employees
Others included Alphabet, Spotify, Yahoo, Twitter, and Zoom and the list continues to grow as the economy braces for a potential downturn. These larger companies will often offer severance packages or separation agreements to recently terminated employees. The offers usually include a monetary payout to tide former employees over until they find new employment and may also include other financial components including but not limited to, overtime pay, bonuses, accrued vacation time, retirement, pensions, stock, as well as medical insurance. Knowing how to navigate these offers from your employer during these stressful times is extremely important.
Regardless of what industry you were laid off from, a proper review of these severance agreements is highly recommended before signing and blindly accepting them. These legally binding documents often require you to release any claims against your employer which no longer allow you to sue them even if you feel you are still owed money. An employment attorney can help you better understand the terms of your offer and make sure everything that is rightfully owed to you is included in the agreement. Negotiations of severance or separation packages is not uncommon, so if you have any questions or concerns about what has been offered to you amidst your layoff, know that you have the right to discuss the terms of your separation agreement with your employer. Our firm, Fitapelli & Schaffer, LLP, can be reached (212) 300-0375 for a phone consultation to see if we can assist you in better understanding and potentially negotiating the terms of your offer. Also, feel free to view our website here for helpful information regarding your rights when it comes to workplace terminations.