Severance Packages 2025: Which Companies Pay the Best (and Worst)

When layoff notices arrive, the quality of your severance package can mean the difference between a smooth transition and financial panic. Yet most workers have no idea how their company's severance offering compares to industry standards until it's too late to negotiate.

After analyzing severance data from over 50 major employers and industry reports, a stark truth emerges: severance generosity varies wildly, even within the same industry. Some companies offer comprehensive packages worth six months of income or more, while others provide bare-minimum statutory requirements or nothing at all.

According to LHH's 9th Severance and Separation Benchmark Report, severance packages have increased 72% in generosity from 2020 to 2025. But this average masks enormous disparities between companies. Understanding where your employer falls on this spectrum is critical for career planning and negotiation leverage.

The Severance Landscape: Industry-Wide Trends

Severance packages have evolved dramatically over the past five years, driven by competitive pressure for talent, legal risk mitigation, and changing employer brand expectations. The most generous industries saw increases exceeding 80%:

Industry	Increase (2020-2025)	Typical Package
Media & Entertainment	+88%	2-4 weeks/year
Financial Services	+84%	2-4 weeks/year
Technology	+81%	2-3 weeks/year
Healthcare	+30%	1-2 weeks/year

The technology sector, despite massive layoffs in 2024 and 2025, has maintained relatively generous packages as companies compete for talent retention and protect their employer brands. Meta, Amazon, and Salesforce have set new benchmarks that other tech firms struggle to match.

The Best: Companies with Industry-Leading Severance Packages

When it comes to severance generosity, a clear hierarchy has emerged. The following companies offer packages that significantly exceed industry averages, providing laid-off workers with substantial financial cushions during career transitions.

Meta (Facebook): The Gold Standard

Meta offers what many employment lawyers consider the most generous severance package in tech: 16 weeks of base pay plus 2 weeks for every year of service, with no cap. For a 10-year employee, that's 36 weeks (over 8 months) of salary.

But Meta's generosity extends beyond base pay. The package includes full PTO payout, continued stock vesting through the current vesting period, six months of health insurance coverage at company expense, comprehensive career support services, and immigration assistance for visa holders. This combination can be worth $100,000 or more for senior employees.

Salesforce: Five Months Minimum

After multiple rounds of layoffs affecting 30,000+ employees over two years, Salesforce established a new standard: minimum five months of pay regardless of tenure. The package also includes six months of health insurance benefits and at least two months of dedicated career resources and job placement assistance.

This "minimum floor" approach ensures even newer employees receive substantial support, unlike traditional tenure-based formulas that can leave recent hires with minimal severance.

Amazon: Capped but Generous

Amazon's severance formula provides 2-3 months of base pay and benefits, plus one additional week for every 6 months of service. The package caps at 20 weeks but guarantees a minimum of 4 weeks for all employees. Healthcare coverage through COBRA matches the calculated severance period.

For employees with 5+ years of tenure, this translates to roughly 5 months of total compensation, plus the security of continued health coverage.

UPS: Strong Union Protections

UPS offers different severance based on worker classification. Union workers covered by the 2023 Teamsters contract receive 1-2 weeks per year of service with minimums of 4-8 weeks depending on circumstances. Management employees receive 2-4 weeks per year, capped at 26-52 weeks based on level.

COBRA benefits extend 6-12 months for union workers and 3-6 months for management, providing crucial healthcare continuity during the job search.

The Middle: Standard Industry Packages

Most established companies fall into a middle tier, offering severance packages that align with industry norms but don't stand out as exceptionally generous. These typically follow the traditional "1-2 weeks per year of service" formula.

Companies like Microsoft, Google, Intel, Oracle, and IBM generally provide packages in the 1-2 weeks per year range, with variations based on position level and circumstances. These packages typically include some COBRA subsidy and limited outplacement services.

Financial services firms like Goldman Sachs and JPMorgan Chase often provide more generous packages for senior roles (4-6 weeks per year for managing directors) but less for junior employees.

The Worst: Minimal or No Severance

On the opposite end of the spectrum, some companies offer bare-minimum statutory requirements or nothing at all. This trend is particularly prevalent among startups, privately-held companies, and firms undergoing financial distress.

Reports from 2023-2024 indicated that some tech companies, particularly those facing rapid restructuring or acquisition, provided zero severance beyond accrued vacation payout. Workers at these companies often find themselves scrambling for new positions with no financial buffer.

Even when severance is offered, companies at the lower end typically provide flat amounts (1-4 weeks regardless of tenure) rather than tenure-based calculations, leaving long-term employees with inadequate support.

What's Actually in a Severance Package?

Understanding the components of a severance package is essential for evaluation and negotiation. Modern packages extend far beyond a simple cash payout.

Core Components

• •Severance Pay: Typically calculated as 1-4 weeks of base salary per year of service. C-suite executives average 16 weeks, directors 15 weeks, managers 12-13 weeks, and individual contributors 8-9 weeks.
• •Health Insurance Continuation: Employer-paid COBRA premiums for 3-6 months (up to 12 months for generous packages). This benefit alone can be worth $2,000-$3,000 per month for family coverage.
• •Pro-Rated Bonuses: Payment for the portion of annual bonus earned before departure. This is often negotiable even if not in the initial offer.
• •Stock Options and RSUs: Accelerated vesting or extended exercise periods. At companies like Apple, Nvidia, and Tesla, this can represent the largest component of total compensation.
• •Outplacement Services: Career coaching, resume writing, and job search assistance. According to Careerminds, 82% of U.S. companies now include these services, with 69% offering career coaching and 64% providing job search assistance.
• •PTO Payout: Compensation for unused vacation and sick days. State laws vary, with California requiring full payout while other states leave it to company policy.

Legal Clauses and Restrictions

Severance agreements typically require employees to sign away certain rights in exchange for enhanced pay and benefits. Common clauses include non-compete agreements (limiting where you can work for 6-24 months), non-solicitation agreements (preventing you from recruiting former colleagues or clients), non-disparagement clauses (mutual agreements not to speak negatively about each other), and release of legal claims (waiving rights to sue for wrongful termination or discrimination).

These clauses are often negotiable. Employment lawyers frequently secure narrower non-compete restrictions, mutual (rather than one-sided) non-disparagement terms, and carve-outs for specific industries or roles.

How Severance Calculations Work

Most companies use one of three primary calculation methods, according to LHH research on severance practices.

The most common approach (used by 39% of companies) bases severance on position level and years of service. An employee with 8 years of service at a company offering 2 weeks per year would receive 16 weeks of severance. A more complex formula (20% of companies) considers age, length of service, position level, and marketability, sometimes adding weeks for older workers or those in shrinking fields. A simpler method (19% of companies) assigns a flat number of weeks by position level: perhaps 52 weeks for VPs, 26 weeks for directors, and 13 weeks for managers, regardless of tenure.

Understanding which method your company uses is critical for negotiation. If you're a long-tenured employee at a company using the flat-rate method, you have strong grounds to argue for a tenure-based calculation instead.

Negotiating Your Severance Package: What Actually Works

Despite what many HR representatives claim, 80% of severance packages are negotiable, according to LHH's benchmark data. The key is understanding your leverage and making strategic requests.

Timing and Review Periods

Federal law provides specific windows that employers cannot compress. Employees over 40 receive at least 21 days to review individual termination agreements (45 days for group layoffs) under the Older Workers Benefit Protection Act, plus a 7-day revocation period after signing. Use this time wisely. Most successful negotiations happen when employees resist the pressure to sign immediately and instead take the full review period to consult with employment attorneys and prepare counteroffers.

Elements Most Often Successfully Negotiated

• •Additional severance weeks: Requesting 2-4 additional weeks often succeeds, especially for employees with strong performance records or potential legal claims. Frame this as alignment with industry standards rather than personal need.
• •Extended COBRA coverage: Employers often find it easier to extend health coverage than increase cash payments. Requesting 3-6 additional months frequently succeeds and can be worth $6,000-$15,000.
• •Accelerated stock vesting: For equity-heavy compensation at companies like Snowflake or ServiceNow, securing even 3-6 additional months of vesting can be worth tens of thousands of dollars.
• •Narrowed non-compete clauses: Restricting the geographic scope, industry coverage, or duration of non-compete agreements is often achievable, especially in states with laws limiting enforceability.
• •Enhanced outplacement services: Upgrading from basic to premium career coaching packages (worth $5,000-$15,000) is a low-cost concession for employers but highly valuable for career transitions.

When to Hire an Employment Lawyer

Consultation with an employment attorney is advisable when your severance agreement includes complex non-compete or non-solicitation clauses that could significantly limit future employment, when you suspect potential discrimination or retaliation claims, when the offered package seems unreasonably low compared to tenure and industry standards, or when the financial stakes are high (senior positions, significant equity compensation).

Legal fees for severance review and negotiation typically range from $2,000-$5,000 but can result in package improvements worth $20,000-$100,000 or more.

Red Flags: Warning Signs of an Inadequate Package

Certain characteristics signal that a severance offer falls well below market standards and merits aggressive negotiation.

• •Flat amount regardless of tenure: Offers like "4 weeks for everyone" penalize long-tenured employees and should be challenged with industry tenure-based calculations.
• •No health insurance continuation: Companies not offering at least 3 months of COBRA coverage are significantly below industry norms.
• •Immediate stock forfeiture: Lack of accelerated vesting or extended exercise periods for stock options represents substantial lost compensation.
• •Overly broad non-compete clauses: Restrictions covering entire industries or regions effectively block reasonable career progression.
• •Pressure to sign immediately: Employers cannot legally waive the federally mandated review periods, and pressure tactics often signal awareness that the package is substandard.

Special Considerations by Industry and Role

Severance norms vary significantly by industry context and job function. Understanding these patterns helps calibrate expectations and negotiation strategies.

In the technology sector, the standard is 1-3 weeks per year for individual contributors and 3-4 weeks for senior roles, with companies like Adobe and Cisco typically falling in this range. Financial services firms offer 2-4 weeks per year for mid-level roles but can provide 4-6 weeks for managing directors and above, particularly at bulge bracket firms. Healthcare and pharmaceutical companies like Pfizer and Johnson & Johnson generally provide 1-2 weeks per year with more generous packages for R&D leadership.

Retail and hospitality severance is notably lower, often 1 week per year or flat amounts, with management receiving only modestly better terms than frontline workers. Manufacturing firms typically offer 1-2 weeks per year but union contracts may mandate higher minimums and longer COBRA periods.

The Hidden Value: Non-Monetary Components

While cash severance dominates headlines, non-monetary components can provide equal or greater value during career transitions. Career coaching through professional services can accelerate re-employment by 2-4 months, effectively worth $20,000-$40,000 in avoided unemployment.

Positive reference agreements where employers commit to specific, pre-approved reference language remove a major barrier in job searches. Mutual non-disparagement clauses prevent damage to professional reputation while allowing honest discussions about departure. Extended email access (30-90 days) maintains professional relationships and facilitates job searching. Equipment retention, such as keeping your company laptop and phone for personal use, provides $2,000-$3,000 in immediate value while maintaining continuity during the transition.

Looking Ahead: 2026 Severance Trends

Several trends are reshaping severance practices heading into 2026. The formalization wave continues as 91% of organizations have reviewed their severance policies in the last two years, with 70% making packages more generous and documented. Legal compliance pressures mount as state-specific restrictions on non-compete agreements proliferate, forcing companies to shift toward narrower, more defensible restrictions. Component expansion accelerates as the percentage of companies including career transition services increased from 60% to 82% since 2020, reflecting tighter labor markets and employer brand concerns.

The hybrid work factor introduces new considerations, with remote workers sometimes receiving different severance terms than office-based employees, particularly regarding equipment and non-compete enforceability. AI displacement severance is emerging as a distinct category as companies increasingly offer "transformation packages" including reskilling funding for workers displaced by automation rather than performance issues.

Key Takeaways: Maximizing Your Severance

Knowledge is leverage. Workers who understand that severance packages are negotiable and industry-comparable secure substantially better terms than those who accept initial offers. The difference between companies at the top and bottom of the severance spectrum can exceed $50,000 for mid-career professionals and $200,000+ for senior roles.

Before signing any severance agreement, take the full legally mandated review period, research your company's standard practices and industry norms, identify all components of potential value, prepare a reasoned counteroffer based on tenure and performance, consult with an employment attorney for packages worth $30,000 or more, and ensure all agreed terms are documented in writing before signing.

In an era of mass layoffs affecting over 1 million workers in 2025 alone, understanding severance package quality is no longer optional. It's a critical component of career risk management and financial planning.

The companies setting the bar at the top like Meta, Amazon, and Salesforce demonstrate that generous severance is not just about legal compliance but about maintaining employer brand and treating departing employees with dignity. Meanwhile, workers at companies offering minimal packages must recognize they have both the legal right and practical leverage to negotiate better terms.

For detailed information on recent layoff events and severance packages, visit the theNumbers.io layoffs tracker to stay informed about workforce trends and company practices.