US tech giants are finding it hard to lay off workers in Europe. Unlike in the US where companies can lay off thousands of workers without having to face any consequences, strict labor laws in Europe makes it almost impossible to lay off workers. Companies must consult with labor interest groups prior to announcing the layoffs, leaving thousands of tech employees in confusion.
Companies Struggle To Negotiate
Tech giants have laid off thousands of employees last year amid increasing uncertain economic conditions. They are finding it almost possible to lay off workers in Europe because of the lengthy procedure that protects employees’ interests. Google is currently negotiating in France and Germany, but the negotiations have not materialized officially.
In France, Google is offering packages to reduce the headcount through voluntary departures. Amazon is providing a severance plan to senior managers who have been working for 5-8 years, offering them one-year worth of pay as compensation if they choose to leave their job willingly.