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Agreed that 8 weeks is not generous in any sense, especially for employees that have been at the organization for a year or more. Layoffs are different from pe
by ryanSrich 7y ago
Agreed that 8 weeks is not generous in any sense, especially for employees that have been at the organization for a year or more.
Layoffs are different from performance based firings. My rule of thumb for layoffs is mandatory 3 months + 1 month for each year of service. Someone at the organization for 6 years deserves 6 months of severance if laid off.
These are standards you have to build into your financial model. I'm afraid we've been in the crazy world of terribly run startups for too long. When I look at some of the standout startups from 2005-2010 and some from 2011-now, the startups coming out of this recent decade are far less efficient with their cash than their counterparts from the decade before.
- 3fe9a03ccd14ca5 7y agoDoes that model still hold up when there’s company wide layoffs because of financial issues?
- alacombe 7y ago8 weeks sounds pretty awesome when a $100-millions company gives you 2 weeks (minimum legal here in Canada)...
- mattm 7y agoIt's probably a US thing. Canada has a stronger EI program so the hardship of unemployment is handled by society rather than falling solely on the hands of the employer.
- lmeyerov 7y agoYou may be coming from a very diff place than most startups In general for startups and if you can afford, max(2mo, 1mo per year). If you are in a slow industry like finance backoffice, good chance many people are 5-15yr and saved vacations, diff ballgame and HN is irrelevant ;-) Collapse is part of the choice of going for startups. But this is all nonsense right now: super hard for many people to get new jobs right now when not an easy FANG fit. So low severance layoffs right now are pretty career impacting FUs. Can't take the COVID SBA loans and apply it to severance, so not easy. Startups are risks anyways, so maybe time to instead take advantage of the chaos and grow instead!