Laying off 10k employees = a LOT of severance money. Does Intel even have enough cash left in the piggy bank?
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The only package that they are required to pay is the 60 days notice period required by WARN. Anything else is optional. Paying 2 months of compensation to get rid of dead weight is cheap. Employment is at will. You can leave when you want and they can let you go when they want but they are required to give you the 60 days notice or payout. It’s really pretty simple.
The job market is really difficult nowadays so employers have the advantage. Intel will also be able to get away with reducing total compensation as described by others. Compensation has been dwindling for over a decade.
If you survive the layoffs get ready for your work life to change dramatically.
They don't need layoff packages when they get rid of remote work, require 8 to 5 in office 5 days a week, stop 401k matching, take away bonuses, reduce salary temporarily indefinitely, assign people to uncomfortable tasks, demotions, etc... Things will sort themselves out. I've already seen managers being voluntold to step down back to staff.
First they need to figure out how to weed out unproductive employees. Else layoffs will do more than monetary damage.
If they do another ACT, it will be the doom of the company.
When LU collapsed, they used pension fund to pay the severance in 401k like pay out.
Same place they got it last time - borrowed out of free cash and repaid by a massive cut to remaining employees’ salary.
If they can't afford the severance, then they can't afford to meet payroll. Paying dead weight to continue doing nothing is more expensive then paying severance to make them go away. Doesn't seem that complicated.
Companies get some tax breaks / accounting wizardries for severance pay versus standard salaries… they wouldn’t do it unless there was a benefit to doing so, let’s be honest…
Your assuming there will be a package.
Severance cost is only a one time cost. It's even more expensive to keep paying the employees' salaries.
Maybe reducing the severance benefit package?