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by mason55 1242 days ago
> I wonder if it will even save them much money this year

They also get to account for it differently. The severance payments can be written off as a one-time charge, so from that perspective they get to take the GAAP benefits this year.

Even though the cash flow is ~the same between letting people work for a year and then laying them off with no severance, doing it this way makes the business immediately look better.