Did anyone notice the $715MM severance charge they took in the 4th quarter? Is this a move to lessen all the upcoming EOI’s or have they already paid this to the lucky execs that have been shown the door? Way to continue to cut cost EB
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How is taking the hit in 2024 if payout doesn't happen until the future align with GAAP?
Looking back, the 2020 severance charges were $1.2 billion, suggesting that these cuts will be roughly 60% of 2020 cuts. 2020 had a lot more expensive EOIs (boomers), so cuts could be higher than 60% of 2020 cuts. Also, if EOI is not as generous as 2020 (likely), cuts could also be higher than 60% of the 2020 staff loss. Not good news.
It's a charge against costs to be incurred in 2025 for reorg and severances