You're fired! But you can keep the laptop and insurance. And here's $10,000.

By Aditi Shrikant

Some tech companies are giving more generous severance packages, but here's what to keep in mind

A few tech firms have been letting workers keep their company-issued laptops when they're let go, along with

When Canva announced it was laying off 22% of its staff on Tuesday, the severance package included unusual benefits for former employees. They were able to keep their company-issued MacBooks, as well as their salary for the next six months, a LinkedIn Premium subscription and healthcare for the next year.

X users immediately said the package was generous, calling it "humane" and saying things like, "We need more founders like thissss."

Canva's not the only tech company that's offered a robust layoff package this week. Squarespace, which announced it was cutting 19% of its staff, offered a similar exit package, allowing laid-off employees to keep their laptops and receive 16 weeks of severance pay and healthcare through May 2027.

Why are these companies being so generous? And could this be the beginning of a broader trend in tech?

Canva explained in a public statement: "We wanted to do everything we could to support the people leaving Canva, both financially and as they take their next steps. We've put together a comprehensive package that provides immediate financial security, ongoing wellbeing and career support, and opportunities to pursue what's next."

As for keeping the company-issued MacBooks: "We know not everyone has a personal laptop," the statement said.

Squarespace said something similar, sharing in a statement to MarketWatch: "We wanted to provide meaningful support to employees through the transition." That includes career coaching and job-search assistance, as well as the previously mentioned perks.

"Allowing employees to keep their laptops was another practical way to support them as they move on to what's next," the company added.

Elton Chan, co-founder and CEO of Second Talent, a platform that helps companies hire developers and engineers, said these companies might offer more in their severance packages than most employers because they don't want to scare current employees who survived this round of job cuts.

"Layoffs affect how the employees who remain view their employer," he said. "If departing colleagues receive little support, it can damage morale and make people question their own job security."

Plus, good severance can make for good publicity and repair a company's reputation amid layoffs. Several commenters under the above posts reminded readers that Canva is "laying off 22% of their staff," or suggested that "it seems cheaper to hold on to them as employees." But the praise for the severance packages has largely drowned out the critics.

These more supportive exit packages also help minimize the perception that tech companies see employees as disposable - a problem the industry has had in the past.

"More generous packages can help preserve employee trust and protect the company's reputation among future candidates," Chan said.

'Employees are sharing their stories on TikTok and LinkedIn'

For years we've seen trends of layoffs happening in a "dehumanizing" way, said Joe Mull, an employment engagement expert and author of "Employalty: How to Ignite Commitment and Keep Top Talent in the New Age of Work."

Earlier this year, Oracle laid off 30,000 employees who were notified of their terminations at 6 a.m. and then promptly locked out of their devices. The Austin-based technology company offered four weeks of base pay plus one week of pay for every year of service, capped at 26 weeks. It was heavily scrutinized for being so lean and a cost-cutting measure to fund AI data centers.

When Farah Sharghi was laid off from Uber in 2020, the company demanded she and other terminated employees return their laptops. When "shelter in place" was the prevailing advice from medical experts, this task seemed unsafe.

"Everyone pitched a fit, including the employees that stayed," she said. "I was like, 'I'm not comfortable going to the post office. I am not doing that. Absolutely not.'"

The backlash caused the ride-hailing company to rescind the requirement.

Controlling the narrative about company culture is becoming increasingly important as more employees are comfortable sharing their layoff experiences on social media.

Almost half of Gen Z said a brand having principles is important to them, according to recent data from YouGov. Almost one-fourth - 24% - said it's important that a brand shares its personal views. Most people don't align with the principles of a company that caustically fires its staff, making how a company lets someone go more of a business decision than a culture one.

"Employees are sharing their stories on TikTok and LinkedIn, so how you go about this can cost [companies] not just in the talent market - it can cost them customers, too," Mull said.

Tech companies specifically may worry about thoughts that they are investing more in AI than in employees, he added.

"We are seeing tech companies more heavily investing in AI infrastructure rather than human support," he said. "There is news coverage every day about how AI [is causing this]. People think, "If I work in the technology space, I'm at risk.'"

But don't get too excited about "keep your laptop" layoffs like this becoming the new norm just yet.

"I don't think packages like Canva's will become the industry standard anytime soon," Chan said. The size and specifics of a severance package usually depend on how well the business is doing, and many companies that have reached the point where they have to make mass layoffs are probably not in a position to pay for more generous exit packages.

"The packages also reflect each company's financial position and approach to restructuring," Chan said. "A company with stronger financial backing may have more room to provide extended salary coverage, healthcare benefits, and career transition support."

"For now, these are better viewed as examples of companies going beyond the usual severance arrangements," he added.

Does a cushier severance package really help soften the blow or make you feel more positive about a company? Let us know in the comments.

Need help or insight with a career or money-related problem? MarketWatch's Dollar Signs advice column is here for you. Submit your questions anonymously here or write to us at dollarsigns@marketwatch.com.

-Aditi Shrikant

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11-07-26 1044ET