Does anyone have credible insight into what the LR payout calculation will be?
Could be important factor for determing to take ER or wait.
As Tom Petty said... The Waiting is the Hardest Part
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To my knowledge, there was no LR for/on 7/24.
Could that have been following the February notifications?
My husband was at Cisco for 20 years! He was affected by the most recent lay-off. His last day was July 24th. NO, it's not 9 months of Cobra. It's only 5 months! Cobra is very, very expensive! $1700 per month to be exact, for my husband and myself.
To my knowledge, there was no LR for/on 7/24. In the US, Cisco is required in CA to give notice or pay in lieu of notice and they usually treat NC employees the same as CA rules. For every LR I've been a part of, or heard of at Cisco between '06 and '18, you were given 30 days notice and paid 30 days pay in lieu of notice, plus some sort of severance. The only thing that changed over the years is that the severance package got smaller and smaller, but there was always the 30 days as an employee where you kept your laptop and "could look for another internal position" and then the 30 days pay in lieu of notice. If your husband's last day was back on 7/24, why wasn't this board showing activity about layoffs back in late May? The only people I know whose positions ended on 7/24 were red-badges and I've never met a red-badge with 20 years experience and they certainly don't get severance packages.
Yes, COBRA is expensive! Health care is expensive. Find a comparable coverage plan with the same benefits and deductibles/limits and you'll pay just as much as COBRA less the COBRA administration percentage. I forget if it's 10, 15 or 20% of the Cisco plan costs added on, but it's something like that.
And as to taxed so much, it's not taxed that high. A large percentage (25-35%) is withheld "for taxes" and the extra income can push people into a higher tax bracket (it did for me), most people will end up getting a large tax return for that tax year because so much was withheld.
It's a toss-up as to do you want the extra $'s now to tide you over until you find the next job, but you end up paying a larger tax payment next April because not enough was withheld or withhold too much and not have as much lump sum $'s now but you get a huge tax return next April and no penalties or interest owed from not withholding enough $'s for that tax year. In my case, it was the latter option because I found work quickly and didn't need to live on that severance package. My tax refund was over $15K when it's normally between $1-2K.
It was clear in the slides that you will be notified October 7th that your job is at risk and you will be provided the three options for how you react to that information.
When will the notices be? No one knows. But, you can be VERY certain that the termination date will not be before Oct 1. That is the bale out date when this all started. Any company that got some form of aid had to keep workers onboard until Oct 1. That is why you are going to see a lot of tech companies holding out until that date.
Does anyone know when the LR notices will happen? I would think it's got to be soon.
Whatever it was, do not assume that is what it will be. A lot of IBMers found out that they can eliminate severance. It is not required to provide. Plus, they may use the extra weekly money in unemployment as the reason not to pay a severance. Severance is a gift and not a requirement in the US.
I am not trying to throw fuel onto the fire, but it is a realistic observation from an outsider that was going to take a job there.
So while the previous LR payout information may be accurate (no reason to think it isn't), it says little about what the upcoming LR package will be. I would look at this historical information as a baseline not what the new plan will be. Could be better, but probably won't be :(
So while accurate not credible for what the new plan WILL be, which was the actual question.
My husband was at Cisco for 20 years! He was affected by the most recent lay-off. His last day was July 24th.
NO, it's not 9 months of Cobra. It's only 5 months! Cobra is very, very expensive! $1700 per month to be exact, for my husband and myself.
Don't expect a big chunk of money!! It's taxed so much, you will be lucky to see half of what you are suppose to get!! And more the point, it's not as much as you think it's going to be.
Also, the packet is VERY legal of course, my husband and I are very smart, and we were calling the HR line that goes with all of this daily! It's not in plain english!
No one is quote "safe" 20 years of 80 hour work weeks and dedication! They do not look out for their employees!! Cisco looks out for Cisco period!!
Depends where you in the world. Strangely there is more to cisco than the states.
If you are not on a commission plan it works like this:
80% of your salary over 9 or 10 weeks.
If you are on a commission plan, your base is paid at 80% for 9 or 10 weeks and 80% of your commission plan for the same time period.
You will also receive 9 months of the COBRA amount.
Additionally, you may receive 1 week for every year of service above 10 years. You may also receive 2 weeks for every year after 20.
Vesting:
If you have any stock (RSU or options), anything vesting between your last last day of employment and 2/10/2021 will be pulled forward.