Currently at DFS anticipating a successful merger and then getting laid off in short order. How does severance work at CapOne?
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Thank you all for the info. Very helpful.
Associates and below get roughly 3 months, managers/senior managers get roughly 6 months, and directors+ get roughly 9 months. Capone will also subsidize your COBRA for the same period.
Assuming acquisition goes through, could be one of the following scenarios:
- Layoffs (if any, but probably a sure thing for some roles/teams where significant overlap exists) on DFS’ side will be done prior to formal acquisition and thus follow existing DFS policies around severance. Not able to speak to how DFS handles that today. This is a tactic sometimes used to keep balance sheets clean upon the transaction closing and to save time and resources, avoiding onboarding cost invested in migrating associates over (to only then implement a severance decision)
- Post acquisition living under one Capital One with existing policies in place, there is a severance scale based on role level (not tenure). It’s typically a minimum of 60 days notice where the associate finishes up their work in the first 2 weeks or so and then can use Capital One resources for resume writing, networking, upskilling, and applying for other internal roles. After the 60 days, there is a lump sum payout based on level.
Keep in mind Capital One may revise the severance package policies in light of any significant associate impact numbers.
Merger will get blocked