this post was submitted on 30 Jan 2025
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This is the best way to do headcount reductions imo. In large organisations there's always someone who's been there for a long time and gotten tired of the work, and that would gladly take this type of offer if it's lucrative enough.
To demonstrate - imagine that you've been considering quitting your job for a while. Then someone comes along and says that if you do that, you also get some additional cash for free. You'd probably take it, right?
And if you necessarily need to reduce headcount, then there's also the argument that if someone leaves voluntarily, then someone who wants to stay doesn't have to get pushed out.
So yeah, I'm not against this
In my experience with this format, only the good ones are leaving and you're stuck with the rest.
Depends on if the good people have better places to go, I guess. My guess is that you're probably going to lose people who have some amount of tenure, especially if you're the kind of company that gives equity that vests on a 4-year schedule. Even if you're not, people with some amount of tenure will be the ones trending towards being checked out already.
Losing people with tenure means you lose organisational memory, which can definitely be negative.
This is all to say that as an organisation, you should think twice about doing any kind of layoff. They are all bad in their own way. This just happens to be the format that is least bad for most workers, which is why I prefer it.