Google miscalculates severance packages; ex-Googler says felt like 'second kick in the stomach'

Google has miscalculated the number of stocks that laid-off employees were told they would receive as part of their severance package. 

"First we want to apologize for an inaccurate calculation that appeared in the initial notification email. The severance package that we explained on the support site, detailed documentation and publicly was correct, but it was inaccurately reflected in the email we sent," the revision e-mail that confirmed the error read. 

The e-mail on stock amount revision, which came three weeks after the layoffs announcement, was seen by Business Insider.

On January 20, Google announced its decision to cut about 6 per cent of its workforce, which is equivalent to 12,000 jobs. The company had announced that it would offer a severance package starting at 16 weeks' salary plus two weeks for every additional year at Google, and accelerate at least 16 weeks of GSU vesting.

Reportedly, the stocks were miscalculated because the company counted the stocks twice.

One of the employees who found out that he would be getting around 40 per cent lesser stock than he had earlier expected said that it felt like a 'second kick in the stomach'.

"Admittedly, I had done my own rough calculations. I thought to myself: huh, that number [of stocks] seems pretty high. But then I thought: Maybe this is them saying, 'Hey, we're taking care of you because we did a shitty thing to you at the last minute'," the ex-Google employee told Business Insider.

The worker further added that the revision announcement had caused stress to the entire family.

In his letter to employees, Google CEO Sundar Pichai on January 20 said the company would offer six months of healthcare, job placement services, and immigration support for those affected. "Outside the US, we’ll support employees in line with local practices." 

For employees in the US, Pichai said Google will pay employees during the full notification period (minimum 60 days). "We'll also offer a severance package starting at 16 weeks salary plus two weeks for every additional year at Google, and accelerate at least 16 weeks of GSU vesting," he had announced. 

Besides this, Pichai said Google would pay 2022 bonuses and remaining vacation time in addition to six months of healthcare, job placement services, and immigration support for those affected.

Also Read: Google Bard AI gets fact-checked: The story behind the $100 billion mistake