131–140 of 639 posts
A bunch of talented employees? Cool, they are all on the market anyway.
A bunch of tiny commodity contracts? Why?
A pile of code? Is it particularly hard to recreate?
Valuations are having a big wake-up call across the industry. While a company can be more than the sum of its parts, VC-backed tech companies have really struggled in industries where unit-economics rule.
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Yes, OP is either from Europe or very entitled or both.
When you get on a plane do you think they fuel it to run out exactly at the moment the plane stops at its final destination, and not a drop more? Don't you think that they reserve fuel for emergencies? Why shouldn't a business consider itself at 0 operating dollars but still have a full account for healthcare or equivalent severance?
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What makes you think the executives are making anything from this? It's a startup, it ran out of money, it failed, there is nothing left. Joining a startup is risky. Because the executives (almost) always make sure that they are compensated before the fall.
Not when a company shuts down like this. If they did, the investors would claw it all back through the courts. The founders and executives walk away from this with $0.
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COBRA isn't employer-paid healthcare, its an ex-employee option to pay for the previously-employer-offered plan, while the employer offers a plan to current employees . If there are no more company operations and no current employees, there is also no plan and no COBRA. This could also be an issue if a company restructured so it didn't have to offer employees health care because of size or everyone being part time or…
You know, it's rather impressive the lengths the US will goto to avoid socialized/single-payer health plans (for anyone who isn't in the military or poor or over 65 at least). That sounds rather cockamamy to me.
Medicaid and CHIP: 85,614,581 people enrolled [1]
Military: 9.5 million people covered [2]
The US has not one but two of the largest single payer health insurance programs in the world.
Medicare alone has more people enrolled than any European country's single payer programs other than Germany (pop 83,294,633) and the UK (pop 67,736,802).
[0] https://medicareadvocacy.org/medicare-enrollment-numbers/ [1] https://www.medicaid.gov/medicaid/program-information/medica... [2] https://www.health.mil/Military-Health-Topics/MHS-Toolkits/M...
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The company is shutting down because they ran out of money... where do you think this magical severance pay is going to come from?
If things are so dire today that they have no money and must shutdown immediately, they were dead in the water 6-8 weeks ago anyways. The company isn’t going to be miraculously saved during that time, so just take the cash you used to pay your employees to rearrange chairs on the sinking ship, call it 2 months early, and pay out their severance/health care during that time while they look for new jobs.
That's an extremely short horizon. Normally it's more than a quarter out, at least.
I work for one of their competitors and I can empathize with them. My thoughts goes to all the employees and their families. The Freight business is collapsing after an unrealistic high during the pandemic. Since April 2022, revenue per load has decreased to about 70%, this means less ways to generate a profit under the same headcount. We also saw a decrease in volume as companies overstocked and consumer spending ha…
(Ex-)Convoy engineer here. No mystery as to why this happened, sudden tight market and low available capital demolished us. External reasons given in the article were the same we knew and couldn't do anything about considering that none of the M&A options materialized. Detailed the shutdown on a call at 8:30am Pacific this morning. CEO said there'll be no severance or healthcare. Lot of talented folks in Seattle and…
>CEO said there'll be no severance or healthcare. Classy. Learning a lot about how certain people treat their employees during these last couple of admittedly insane years. Good for future reference, I guess - though not much solace now. I feel for the employees. Edit: Wow, more responses than I thought! I admit that the tone of my comment was too reactionary, but my opinion stands. I won't modify the original commen…
If you want to be coddled and showered with benefits, go join a Fortune 500. Startups are not for you.
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C̶O̶B̶R̶A̶ ̶i̶s̶ ̶m̶a̶n̶d̶a̶t̶o̶r̶y̶,̶ ̶b̶u̶t̶ ̶t̶h̶e̶ ̶p̶e̶r̶s̶o̶n̶ ̶l̶a̶i̶d̶ ̶o̶f̶f̶ ̶h̶a̶s̶ ̶t̶o̶ ̶p̶a̶y̶ ̶f̶o̶r̶ ̶i̶t̶ …if the company still exists (see comments above and below)
Only if there still is a group health plan to pay for. If the company has shut down, there is no health plan, and therefore no COBRA. (Although, in general, with ACA, marketplace plans are not clearly worse than COBRA would have been.)
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What makes you think the executives are making anything from this? It's a startup, it ran out of money, it failed, there is nothing left. Joining a startup is risky. Because the executives (almost) always make sure that they are compensated before the fall.
Not when a company shuts down like this. If they did, the investors would claw it all back through the courts. The founders and executives walk away from this with $0.
Often after having forgone salary for a while, also.
Earlier quoted context omitted.
The company is shutting down because they ran out of money... where do you think this magical severance pay is going to come from?
If things are so dire today that they have no money and must shutdown immediately, they were dead in the water 6-8 weeks ago anyways. The company isn’t going to be miraculously saved during that time, so just take the cash you used to pay your employees to rearrange chairs on the sinking ship, call it 2 months early, and pay out their severance/health care during that time while they look for new jobs.
https://www.google.com/amp/s/www.businessinsider.com/fedex-s...