"VSP can be denied by the recipient but if the group doesn't meet criteria for headcount reduction then a VSP (usually a very good severance package with an option to be able to be rehired in the future) will turn into an ISP (not a good package at all with no option of being able to return)."
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Because you received that email you are on that short list. If you deny it, then your name would more than likely carry over to the ISP list as those are ones they are targeting for separation.
Yes. If you are on VSP then you are a non-ISP candidate.