Tech layoff severance - what's standard?

Counteroffer · Answers · severance Source: https://trycounteroffer.com/answers/tech-layoff-severance-standard

Short answer: Standard tech layoff severance in 2024-2026 includes 2 weeks of base salary per year of service (with role-based floors), pro-rated bonus, 3-6 months of healthcare bridge, and (for senior roles) 6-12 months of equity acceleration. Big Tech (Google, Meta, Microsoft, Amazon) opens with 16 weeks plus 2 weeks per year. Late-stage private companies typically match this. Most tech severance has substantial room above the initial offer, especially on equity acceleration.

Big Tech severance baselines

Public Big Tech companies have well-established severance practices that became more visible during the 2022-2024 layoff wave. Typical opening packages:

Meta (Facebook):

16 weeks of base pay + 2 weeks per year of service
Pro-rated bonus
6 months of healthcare (COBRA or equivalent)
Earned RSU vesting credit
Outplacement assistance

Google (Alphabet):

16 weeks of base pay + 2 weeks per year of service
6 months of healthcare
Bonus payment for 2024 (varies by performance)
Outplacement and immigration support

Microsoft:

Less publicly disclosed but generally aligned with industry practice
Severance multiplier in the 2-week-per-year range
Healthcare continuation
Equity vesting through specific dates

Amazon:

Less standardized; varies by business unit and role
Generally 10-12 weeks base for most ICs
Higher for senior roles
Healthcare continuation 60-90 days

These baselines exist in part because each company faces ADEA decisional unit disclosure obligations in group layoffs, which creates pressure for consistent treatment.

Startup severance practice

Tech startups typically offer less generous severance than Big Tech, especially at earlier stages:

Stage	Typical IC severance	Senior leader severance
Pre-seed / seed	2-4 weeks total	1-3 months total
Series A-B	4-8 weeks	3-6 months
Series C-D	6-12 weeks	6-9 months
Late-stage private	12-16 weeks	6-12 months
Pre-IPO	Approaches Big Tech levels	9-12 months

Startup severance is heavily negotiable because:

The "policy" is often whatever the CEO decides in the moment
No HR machinery enforces consistency
The cash cost is more visible to leadership, which can cut both ways

For senior leaders at startups, the equity treatment is often more valuable than cash. Negotiating acceleration of unvested equity and extended option exercise windows can be worth significantly more than additional cash severance.

What's been included in recent waves

Reviewing severance packages from the 2022-2024 tech layoffs, the common structure included:

Cash component:

Base severance: 8-16 weeks for ICs, 16-26 weeks for managers, 6-9 months for directors+
Pro-rated annual bonus
Earned but unpaid commission (for sales roles)

Healthcare:

3-6 months of COBRA or equivalent for most roles
6-12 months for senior leaders

Equity:

Vesting through actual last day (not announcement date)
Some companies offered limited acceleration to align with next quarterly vest event
Extended option exercise windows in some cases (3 months to 10 years depending on company)

Other:

Outplacement services (often $5K-$15K value)
Immigration assistance for visa holders
Job search support
Mental health support (some companies)

What was usually NOT included in initial offers:

Significant equity acceleration (had to be negotiated)
Mutual non-disparagement (one-way standard)
Reference letters in writing
Removal of any added non-compete language

The pattern: initial offers cover cash and healthcare reasonably but leave equity treatment, release scope, and quality-of-life items on the table for those who negotiate.

Equity treatment trends

Equity treatment at layoff varies significantly by company stage:

Public tech companies:

Vesting through separation date is standard
Acceleration for senior leaders is increasingly common (6 months at director+, 12 months at VP+)
Option exercise windows typically default 90 days; extensions to 1-7 years emerging at progressive companies

Late-stage private companies:

Double-trigger RSU treatment is the norm
Unvested RSUs typically cancel; the question is whether time-vested-but-unpaid RSUs survive
Acceleration negotiation is critical because amounts can be substantial
Extended liquidity-event windows post-termination are sometimes available

Earlier-stage startups:

Limited acceleration as standard
Extended option exercise periods becoming more common
Equity treatment often most negotiable item because cash is constrained

If you're in tech and laid off, your equity treatment is usually the highest-dollar negotiable. Don't accept the default treatment without exploring acceleration and extension.

Negotiation leverage in tech layoffs

A few tech-specific factors that affect negotiation leverage:

Group layoff dynamics:

ADEA decisional unit disclosure (for groups, for employees 40+) can reveal patterns
Public attention to large tech layoffs creates pressure on companies to be perceived as fair
Internal Slack and external coverage shape narrative; companies sometimes improve packages mid-wave

Performance context:

High performers typically have more leverage on cash and equity asks
Performance reviews and recent feedback matter
Specific accomplishments documented internally support stronger asks

Network and references:

Industry visibility creates leverage for reference quality and non-disparagement
Reference language and designated reference contact are easier wins in tech
LinkedIn dynamics affect long-term reputational impact

Time vs cash tradeoffs:

Tech employees often have more savings buffer than other industries; can wait out negotiation
Stock-heavy comp packages mean equity treatment dominates total severance value
Healthcare bridges are particularly valuable in the US system

What to do next

If you want a delivered review of your specific tech severance package against industry benchmarks, with recommended negotiation strategy, we deliver one in 24 hours for $199. See Severance Review.

Sources

layoffs.fyi tracking data
Public Meta, Google, Microsoft severance disclosures during 2022-2024 layoffs
Carta and Pave compensation data
ADEA OWBPA disclosure requirements (29 USC § 626(f))

Get your contract reviewed

If you want a delivered review of your specific document with cited authority and counter language, see https://trycounteroffer.com/severance.

Last updated: Sun May 31 2026 00:00:00 GMT+0000 (Coordinated Universal Time)

Counteroffer is a contract analysis service, not a law firm. This page is informational, not legal advice.