Big Tech Layoffs & Employee Rights
Layoffs in large technology companies often follow periods of intense work, performance evaluations, or organizational “recalibration.” For many professionals, these transitions come as a shock—particularly when they coincide with personal sacrifice, equity vesting timelines, or the exercise of workplace rights.
This page provides general information for employees at major technology companies navigating layoffs or separations. It explains how performance narratives, restructuring decisions, equity compensation, and protected activity can intersect with California and federal employment law, and when it may be appropriate to seek legal advice.
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What employees at large technology companies should know about layoffs, performance narratives, equity, and legal options
Frequently Asked Questions
Next Steps
Understanding Layoff Narratives in Large Technology Companies
Technology employers often describe layoffs as driven by efficiency, restructuring, or performance-based decision-making. While employers have significant discretion to make business decisions, that discretion is not unlimited.
Under California and federal law, an employer may not take adverse action against an employee because they:
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Requested or used medical, disability, parental, or caregiver leave
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Sought disability accommodations or mental health support
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Raised concerns about discrimination, bias, or unfair treatment
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Belong to a protected class
When a layoff or termination closely follows any of these circumstances, the explanation offered may warrant closer legal review.
Performance Reviews, “Calibration,” and Timing
In large technology organizations, separation decisions are often preceded by performance evaluations, ranking processes, or internal calibration exercises. These processes can feel opaque to employees and may shift rapidly over time.From a legal perspective, performance narratives are not immune from scrutiny. Sudden changes in evaluations, inconsistent feedback, or performance issues raised only after protected activity can be relevant when assessing whether a separation decision was lawful.
Equity Compensation and Separation
For many Big Tech employees, equity compensation—such as restricted stock units (RSUs)—represents a substantial portion of total compensation. When employment ends, unvested equity is typically forfeited under plan terms.
In some circumstances, however, lost equity may be considered as part of potential damages if a termination or layoff is found to be unlawful. Understanding how equity interacts with employment claims requires careful analysis of timing, documentation, and the reasons provided for separation.
For a more detailed discussion, see our resource on lost RSUs after a layoff and when unvested equity may be recoverable.
Are layoffs at large technology companies always lawful?
No. While employers may conduct layoffs for legitimate business reasons, a layoff may be unlawful if it is motivated by discrimination, retaliation, or the exercise of protected rights under California or federal law.
Does at-will employment mean a tech company can terminate employees for any reason?
No. At-will employment allows termination without cause, but not for unlawful reasons. Terminations based on protected characteristics or protected activity remain prohibited.
Can lost RSUs or other equity be part of a legal claim?
In certain cases, yes. If an employee can show that termination was unlawful and that equity would have vested but for that termination, equity losses may be considered when assessing potential damages.
What situations raise red flags in tech layoffs?
Examples include:
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Layoffs shortly after requesting accommodations or protected leave
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Performance concerns raised only after internal complaints or leave
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Shifting or inconsistent explanations for termination
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Separation timing that coincides with equity vesting milestones
Each situation is fact-specific and requires individualized review.
What should I do if I was laid off from a large technology company?
Employees may wish to:
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Preserve offer letters, equity grant documents, and vesting schedules
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Save performance reviews and internal communications
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Review separation agreements carefully before signing
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Consult with an employment attorney to understand rights and deadlines
Early consultation can help clarify options, even if no action is ultimately pursued.
If you were impacted by a layoff or separation at a large technology company and are questioning whether the explanation you were given reflects the full picture, speaking with counsel early can help you understand your rights and preserve options.