Question 1

What is typical tech severance in 2026?

Accepted Answer

FAANG companies in 2026 typically offer 16 weeks base + 2 weeks per year of tenure. So a 5-year FAANG employee gets 26 weeks (~6 months) base salary as severance. Unicorns/pre-IPO: 8-12 weeks + 1 week/year. Series-B: 4-8 weeks + 0-1 week/year. Public mid-cap: 12-16 weeks + 1-2 weeks/year. Traditional enterprise: 8-26 weeks + 1-3 weeks/year. Average across tech 2024-2025 layoffs (Layoffs.fyi data): 12-14 weeks median.

Question 2

Should I sign the severance agreement immediately?

Accepted Answer

Almost never. Federal law (Older Workers Benefit Protection Act / OWBPA) gives 21 days to consider individual layoffs and 45 days for group layoffs. You typically have an additional 7-day revocation window after signing. Use the 21-45 days to: (1) consult an employment attorney ($500-$1,500 flat fee for review is standard); (2) negotiate (most companies improve initial offer 10-30% when asked); (3) review non-compete/non-solicit clauses for scope and duration; (4) verify all calculation accuracy (PTO accrual, prorated bonus, equity).

Question 3

What is equity acceleration and when does it apply?

Accepted Answer

Equity acceleration converts unvested shares to vested at termination. Two flavors: (1) Single-trigger — vests on layoff alone (rare, sometimes for executives); (2) Double-trigger — vests on layoff PLUS change-of-control event (acquisition, IPO, merger). Typical FAANG layoff: continues vesting through severance pay period (usually 16-26 weeks). Some companies round vesting to next year boundary. Negotiate: (a) extend vest through end of next quarter cliff; (b) accelerate cliff-adjacent options that would have vested within 90 days; (c) extend post-termination exercise window from 90 days to 12-24 months for AMT planning.

Question 4

What is garden leave and is it better than immediate exit?

Accepted Answer

Garden leave keeps you on payroll without working — typically 60-90 days. Benefits: (1) continuing comp + healthcare during period; (2) restricted stock continues vesting; (3) you can't start a new job during garden leave (often considered "active employment" for non-compete enforcement); (4) often includes notice-period bonus eligibility. Tradeoff: cannot start new job. Best for: senior employees with significant unvested stock vesting in next 60-90 days, or where finding new role takes time. Garden leave usually combines with severance, not replaces it. Math: at L5 FAANG, 90 days garden leave = $147K (3 months × $49K/mo TC) PLUS severance.

Question 5

How does COBRA subsidy work in tech layoffs?

Accepted Answer

COBRA premium for tech families typically runs $2,000-$2,800/month (employee portion only, no employer subsidy in normal employment). After layoff, you have 60 days to elect COBRA continuation for up to 18 months. Tech severance packages typically include 3-6 months of paid COBRA. Negotiate: (1) extend to 12 months if family healthcare needs; (2) lump-sum COBRA cost into severance instead of pay-as-you-go; (3) ACA marketplace alternative if gap allows — premium tax credits available with reduced income. Pre-existing conditions: HIPAA prevents new insurer denial; verify with prospective employer.

Question 6

What if I have a signing bonus clawback?

Accepted Answer

Most tech signing bonuses (typical $25K-$100K) have 1-2 year clawback. Pro-rata clawback (most common): if you signed for $50K with 24-month clawback and leave at 18 months, you owe $50K × 6/24 = $12,500 back. Some clawbacks waive on involuntary termination — check the specific contract language for "termination by company without cause" or "in connection with reduction in force" exceptions. Negotiate: full waiver if termination is RIF-related; many companies waive without resistance.

Question 7

What value is outplacement service?

Accepted Answer

Outplacement (RiseSmart, LHH, Lee Hecht Harrison, Adecco) provides career coaching, resume rewriting, LinkedIn optimization, interview prep, networking introductions. Typical voucher value $3,000-$5,000 (FAANG), $1,500-$3,000 (mid-cap). Realistic value: 3-5 hours of coaching is the most commonly used part — worth $400-$800 retail. Most laid-off workers ignore beyond first session. NEGOTIATE if you want: vendor choice (premium vendors do better executive prep), longer service period (6 vs 3 months), specialized services (technical interview coaching for engineers).

Question 8

Should I take a higher base salary or larger severance?

Accepted Answer

Take the higher severance — math favors it. Severance is paid in lump sum (or short period), allowing tax bracket optimization (potentially deferring income to following year if laid off late in year). Base salary is taxed marginally at peak. Plus: severance amount is more negotiable than base salary; companies have tiered severance budgets but rigid base salary bands. Exception: if you're likely to find new job within 4 weeks, the base salary + retained employment matter more than severance because base salary continues longer than 4 weeks.

Tier	Base Severance	Equity	Healthcare	Outplacement	Signing Bonus Clawback
FAANG (Google, Meta, Amazon, Apple, Microsoft)	16 weeks + 2 weeks/year tenure	Vested through end of next vesting date typically; some round to next year	6 months COBRA paid	$3,000-$5,000 voucher	Pro-rata if <1 year tenure
Unicorn / Pre-IPO	8-12 weeks + 1 week/year	Tender offer participation; remaining vesting forfeit	3 months COBRA paid	Sometimes	Pro-rata typical
Series-B / C	4-8 weeks + 0-1 week/year	Forfeit unvested; vested options have 90 days to exercise	2-3 months COBRA paid	Rare	Often full clawback <2 years
Public mid-cap	12-16 weeks + 1-2 weeks/year	Vesting through severance period; double-trigger acceleration on change of control	4-6 months COBRA paid	Typical $2,000-$4,000	Pro-rata 18-24 months typical
Traditional enterprise (banks, insurance, retail tech)	8-26 weeks + 1-3 weeks/year	Pension/RSU vesting per plan; usually most generous tenure-based	6-12 months COBRA	Typical $3,000-$6,000	Less common

Lever	Baseline offer	Target ask	Leverage points
Severance weeks	Company offer	+25-50%	Length of tenure, performance ratings, manager support, refusal-to-sign value
Equity acceleration	Vested only	6 months additional vest	Cliff-adjacent timing, key project ownership, IP at risk
COBRA subsidy length	3 months	6-12 months	Family healthcare needs, pre-existing conditions, pregnancy timing
Garden leave	Immediate exit	60-90 days paid	Maintains comp + healthcare + retains restricted stock during period
Outplacement vendor choice	Default vendor	Premium vendor (RiseSmart, LHH)	Many companies allow upgrade with manager support
Signing bonus clawback waiver	Pro-rata back	Full waiver	Long-tenure, role elimination not performance
Reference letter + LinkedIn endorsement	Generic	Custom + role-specific quotes	Free for company; high value for next job search
Restricted stock option exercise window	90 days	12-24 months	AMT planning if exercising large vested option pool

Tech Layoff Severance Math 2026 — Negotiation Tactics by Company Tier

Severance by company tier

8 negotiation levers — what to ask for

Example severance math: L5 FAANG, 5 years tenure

Critical mistakes to avoid

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