Layoffs are not the only way companies are shrinking their workforces.
Two major companies in different industries announced employee buyouts on Oct. 26. Microsoft announced plans to extend buyout packages to a quarter of the company. Media and entertainment company Skydance said in a memo to employees that it will offer buyouts to an undisclosed number of workers, according to Reuters. The memo also introduced a five-day, return-to-office mandate for all employees. The announcements sparked fears of potential layoffs at the companies on Reddit and other social media platforms.
Employee buyouts are voluntary and, in most cases, allow workers to leave their job in exchange for a severance package. Buyouts are "becoming more and more popular" as a way for employers to reduce their headcounts and, ultimately, cut costs, says Tammy Marzigliano, a plaintiff-side labor lawyer at Outten & Golden.
While buyouts can provide employees with a financial buffer as they transition into a new role or prepare for retirement, they also can signal layoffs are ahead, Marzigliano tells CNBC Make It.
For workers who feel they are not meeting expectations at work or have already been placed on a performance improvement plan, a voluntary buyout gives employees an exit with severance. A buyout may also be a good deal for professionals who plan to retire soon and employees who already want to leave the company.
But for workers who want to keep their jobs, buyouts can be yet another source of...
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