Recently Alphabet joined tech companies like Meta, Coinbase, Meta, Twitter, Microsoft, Salesforce and hundreds others in announcing organisation-wide layoffs. The Google parent on January 20 announced role eliminations, impacting 12000 employees across product areas, functions, levels, and regions.
In 2022 and 2023, many technology companies implemented mass job cuts, dismissing a significant number of employees. These layoffs were a result of a hiring surge that took place in 2020 and 2021 during the pandemic, which caused a surplus of workers.
According to data from Layoffs.fyi, a website that monitors job losses in the technology industry, over 200,000 tech employees were let go in 2022 and 2023. Specifically, in January 2023 alone, over 55,000 workers were terminated. The reason behind these layoffs is likely a result of the surplus of workers and potentially a shift in the industry or company’s priorities
In India, so far Meesho, Swiggy, Instamojo, ShareChat, Dunzo, BharatAgri, Ola, CoinDCX, CureFit, Unacademy, Furlenco, Zomato, Patym, CarDekho, MakeMyTrip, WhiteHatJr, and several others have fired employees in 2022 and 2023.
A look at severance packages that tech giants are offering to sacked employees
Microsoft
CEO Satya Nadella said Microsoft was making changes that will result in the reduction of 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of the company’s total employee base.
For its US-based employees, the company announced a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days’ notice prior to termination, regardless of whether such notice is legally required.
Benefits for employees outside the U.S. will align with the employment laws in each country, Nadella had said.
Google
CEO Sundar Pichai, in an email addressed to Google employees, said the decision was taken after a rigorous review across product areas and functions. Severance benefits for Google employees will differ in geographies according to local laws.
In the US, Google has promised the following benefits to those affected: a full salary for the notification period (60 days), a severance package starting at 16 weeks salary plus two weeks for every additional year at Google, accelerated vesting of at least 16 weeks of GSU, 2022 bonuses, and remaining vacation time, as well as six months of healthcare, job placement services, and immigration support. Outside the US, the company will support employees in line with local practices
Meta
In November 2022, Meta (formally Facebook) announced the reduction of its workforce by about 13%, impacting 11,000 employees. Meta blamed over hiring and excessive investments done done by the company in 2020 during extra normal growth phase of the pandemic. While severance packages differed across geographies, here’s what Meta gave its employees in the US.
Severance. 16 weeks of base pay plus two additional weeks for every year of service, with no cap.
PTO. All remaining PTO time.
RSU vesting. Everyone impacted will receive their November 15, 2022 vesting.
Health insurance.Healthcare insurance cover for impacted employees and their family members for six months. Career services.
Three months of career support with an external vendor, including early access to unpublished job leads.
Immigration support. A notice period before termination and some visa grace periods
