Tech Layoffs Continue in 2026 — Know Your Severance Rights
Did our AI summary help? Let us know.
Tech layoffs have continued into 2026 as companies restructure around AI. Understanding your severance rights, negotiation leverage, and total package value is critical. This calculator estimates your expected severance based on company size, tenure, role level, and industry benchmarks.
Ready to run the numbers?
Why: Tech layoffs have surged in 2026 as companies restructure around AI. Many employees don't know their severance benchmarks by company size, how to negotiate, or what their total package (base + PTO + stock) is worth. Understanding your rights and runway is critical for financial planning.
How: You enter salary, years at company, company size, location, role level, vested stock value, and PTO balance. The calculator uses industry benchmarks (startup 0-2 wks/yr, FAANG 4-8 wks/yr) to estimate base severance, adds PTO payout and stock value, computes COBRA costs by region, then estimates financial runway and job search timeline by role level.
Run the calculator when you are ready.
✈️ Runway Counter
📊 Package Breakdown
🍩 Package Composition
📈 Runway Burn-Down
🏢 Severance by Company Size
Severance Summary
Base: $20,769 (9.0 wks) + PTO $4,615 + Stock $15,000. COBRA: $600/mo individual. Landing: Oct 2026.
For educational and informational purposes only. Verify with a qualified professional.
Tech layoffs have surged across FAANG, startups, and Indian IT firms. Severance varies widely: startups often offer 0-2 weeks per year; large corps 2-4 weeks; FAANG 4-8 weeks plus extras. Rest of World documented India\'s tech worker crisis; Wired covered Xbox leadership shakeups. This calculator estimates your package, COBRA costs, financial runway, and job search timeline.
Sources: Rest of World, Wired, layoffs.fyi, industry norms.
Key Takeaways
- • Severance = weeks per year × years × weekly salary; PTO payout = (salary ÷ 260) × days
- • COBRA in the US: ~$600/mo individual, ~$1,800/mo family; UK/India often lower
- • Runway = total package ÷ monthly burn (est. 70% of salary); plan for job search timeline
- • Senior roles take 3-5 months; directors 6-9 months; VPs 6-12 months to land
Did You Know?
How Severance Works by Company Size
Startup (0-2 wks/yr)
Minimal or no severance common. Some offer extended vesting or small lump sum. Negotiate if possible.
Mid-Size (1-2 wks/yr)
More predictable. Often 1-2 weeks per year. May include limited COBRA subsidy.
Large Corp (2-4 wks/yr)
Structured packages. PTO payout, sometimes outplacement. Health coverage often extended.
FAANG (4-8 wks/yr)
Generous: 4-8 weeks per year, COBRA subsidy, accelerated vesting, career support.
Expert Tips
Severance by Company Size
| Size | Weeks/Year | Typical Extras |
|---|---|---|
| Startup | 0-2 | Rare |
| Mid | 1-2 | Sometimes COBRA |
| Large | 2-4 | PTO, outplacement |
| FAANG | 4-8 | COBRA, vesting, career |
Job Search Timeline by Level
Frequently Asked Questions
How much severance do FAANG companies typically offer?
FAANG and similar big tech firms typically offer 4-8 weeks per year of service, plus extended health coverage (COBRA subsidy), accelerated vesting, and sometimes outplacement services. Senior roles often receive more generous packages.
What is COBRA and how much does it cost after a layoff?
COBRA lets you continue employer health coverage for up to 18 months. Individual plans average ~$600/month; family plans ~$1,800/month. Some companies subsidize COBRA for a few months as part of severance.
How long does it take to find a new tech job after a layoff?
Job search timelines vary by level: junior 1-2 months, mid 2-3 months, senior 3-5 months, lead 4-6 months, director 6-9 months, VP 6-12 months. Market conditions and location significantly affect these estimates.
Do startups offer severance when they lay off employees?
Startups often offer minimal or no severance—0-2 weeks per year is common. Some provide extended equity vesting or a small lump sum. Always negotiate; even modest severance can extend your financial runway.
How is financial runway calculated after a layoff?
Runway = total severance package (base + PTO payout + vested stock) divided by monthly burn. Burn is typically estimated at 70% of your prior monthly salary (rent, food, insurance, essentials).
What should I do with vested stock options after a layoff?
Vested options are usually yours to exercise within a window (often 90 days). Add their value to your severance total for runway calculations. Unvested options are typically forfeited unless your employer offers extended exercise.
Sources
⚠️ Disclaimer: Estimates only. Actual severance depends on employer policy, jurisdiction, and negotiation. COBRA costs vary by plan and region. Job search timelines are industry averages. Not legal or financial advice.
Related Calculators
German Public Sector Pay Calculator (TVöD/TV-L)
Calculate gross and net salary for German public sector employees. TVöD, TV-L, TV-H. Includes Entgeltgruppe, Stufe, Jahressonderzahlung, and 2026...
TrendingGig Economy Earnings Calculator
Multi-platform real earnings after expenses. Uber, DoorDash, Fiverr, Upwork, TaskRabbit. Net hourly rate, annual net income, effective tax burden, and true...
TrendingSmart Travel Gear: Cost-Per-Use and Budget Calculator
Calculate travel gear cost-per-use, budget utilization, and savings vs rental. Plan essential travel products for minimalist, business, family, and adventure...
TrendingAcademic Prize NOK Currency Converter
Convert Norwegian kroner prize amounts to major currencies with indicative FX; optional inflation scenario — verify live rates and official prize figures.
TrendingACA Premium Change Calculator
Calculate your Affordable Care Act health insurance premium changes and subsidies.
TrendingACA Subsidy Expiration Calculator
Calculate how the expiration of enhanced ACA subsidies will affect your health insurance costs. Compare 2025 vs 2026 premiums and see your new subsidy amount.
Trending