Reported 10 months ago
Due to a decline in sales and reduced orders, Chinese Guangzhou Honda has recently been forced to lay off approximately 1,700 employees, accounting for 14% of the total workforce. Despite the generally negative sentiment towards layoffs, the severance package offered by Guangzhou Honda is considered quite generous, with many senior employees eager to be laid off and hoping to receive the substantial rewards, such as extra 1.8 months of salary on top of the 'N+2' compensation standard. While the severance plan is favorable for veteran employees, it raises concerns among new hires as the company implies that accepting the layoff is essential to receive better compensation levels, leading to reduced working hours and possibly lower salaries. This situation has caused anxiety among new employees, contrasting with the desire of senior staff to take advantage of the opportunity to retire early with a significant payout.
Source: YAHOO