Finance

Meta’s Severance Grading Package Offer: Strong in Space

If you’re one of the 8,000 Meta workers who will be laid off in May, the difference between a good and a bad result could cost you $50,000 or more. The main reason for the layoffs is to cover their massive AI CAPEX.

I’ve spent 14 years helping people negotiate severance packages, including engineering my own and my wife’s layoffs, and Meta’s offer is one of the most interesting lessons I’ve seen in a long time. Let me break it down part by part.

Here’s a key excerpt from an internal Meta memo that came out:

“We will support those laid off with an open severance package, in the US, that will include a base pay of 16 weeks and two weeks for each year of work. We will also cover COBRA health care costs for US workers and their families for 18 months.”

On the face of it, 16 weeks of basic pay and two weeks per year of service sounds impressive. If you’ve been at Meta for 10 years, that’s 16 + 20 = 36 weeks of salary. With a base of $250,000, you’re looking at about $173,000. It’s not bad.

But here are many workers who can’t, and it changes the picture somewhat.

WARN Rule: How much Meta is required to pay vs. What’s Negotiable

Under the California WARN Act, companies with 75 or more employees must give 60 days’ notice or 60 days’ pay to all employees before a major layoff. That’s 8 weeks, it’s non-negotiable, it’s legally mandated, and it’s not a kind thing Meta does for you.

This is important because severance pay is voluntary. There is no WARN Act payment. If you take the 8 weeks Meta is legally required to pay, the actual discretionary severance comes down to 8 additional weeks of pay, plus two weeks per year of service.

That changes the standard.

Meta’s Severance Pack

Base Pay Component: B+

Sixteen weeks in total (8 mandatory + 8 optional) is above average, but not exceptional. The gold standard I have consistently observed, both in my own interviews and in all the hundred and one people I have interviewed, three weeks of pay for every year of servicenot two.

That 50% bump is totally achievable and worth fighting for. That’s what my wife and I found. That’s what many of my consulting clients have found.

Meta gives you two weeks a year. You should ask for three.

COBRA coverage: A+

This is where Meta truly deserves recognition. 100% COBRA health insurance coverage for 18 months remaining.

It’s the median I’ve seen from hundreds of quit packages six months Availability of COBRA. Some companies offer nothing at all. 18 Meta months are really rare, and in a family, statistics are important.

My family spends about $3,000 a month on health insurance. Eighteen months of COBRA covered by Meta would cost $54,000 for us alone. When evaluating competitive job offers after a layoff, don’t forget to consider what you’ll lose when the layoff ends.

Overall Package: B+

It is strong, above average, and generous in health care. But the base pay portion has room to move, and that’s where your energy should go.

Foreknowledge is a Great Advantage – Use It

Meta announced an expiration date of May 20 weeks early. For many employees, that sounds like a stressful month. But if you reframe it, it’s actually a solid month.

If you want to keep your jobuse this window aggressively. Reconnect with your manager. Show your value in a tangible way. Make yourself visible to the decision makers. This way, you improve your chances of survival.

If you were thinking of leavingthis is one of the best things that could have happened to you. Every year, thousands of workers forgo the severance pay they were legally and morally entitled to, simply because they didn’t feel comfortable asking for it, or didn’t know how. Quitting means losing everything. Negotiating a layoff puts money in your pocket when you walk out the door.

Now is the time for disgruntled Meta employees to volunteer to be fired. You free your boss from a painful decision. It may open the door to a better package. And if you approach it the right way, you may be able to negotiate your way back as a part-time consultant at a very high hourly rate, something I’ve helped countless people do, including my wife.

What You Should Do Now

The window between now and May 20 is short. Here’s how to use it:

First of allmake sure your personal email is updated on Business Day. Meta clearly states that takedown notices will go to both your work and personal accounts.

Second timeIf you are open to layoffs, start now to have quiet conversations with your boss or HR manager. Put it as wanting to help them through a difficult process, not as desperate.

The third timeunderstand that the announced Meta package is a starting point, not a ceiling. The classification is negotiable. Most people don’t know this. Those who do almost always come out on top.

I’ve laid out a complete playbook on how to conduct these conversations – what to say, what not to say, how to time it, and how to be highly engaged – in my book, How to Handle Your Layoff. If you’re a Meta employee reading this right now, or someone looking to leave their jobs, that’s where I’d start. Use the code “saveten” at Check it out to save $10.

If you would like personal help navigating your specific situation, book a consultation here. I will give you the courage to take a leap of faith. I work with a limited number of people directly, and given the timing, spots will fill up quickly.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button