The Separation IndexSeverance Packages Are Shrinking. Here Is What the Data Shows
The median severance package has fallen substantially since 2023. Here is what changed and what it means if you are negotiating one now.
If your severance offer feels smaller than what you remember hearing about a few years ago, that is not just perception. Median severance packages have fallen to roughly 10 to 14 weeks of pay in 2026, down from a peak near 19 weeks in 2023.
Why packages have gotten leaner
Several forces are pulling severance norms downward at once. A larger volume of layoffs across more industries has made severance a bigger, more scrutinized line item for employers. Companies facing repeated rounds of layoffs, in particular, tend to tighten packages in later rounds compared to earlier ones.
What this means if you are negotiating
A shrinking median does not mean every package is fixed or non-negotiable. Severance remains, in the vast majority of states, a matter of negotiation rather than legal entitlement. Knowing the current, real benchmark for your industry and tenure, rather than an outdated figure from a few years ago, is essential to negotiating from an informed position.
What is still worth asking for
Even in a leaner environment, several items beyond the base severance number typically remain negotiable:
- Continued health insurance coverage, commonly through COBRA subsidy
- Payout of unused paid time off
- Treatment of any unvested equity or pending bonus
- Outplacement services and the wording of any reference
Frequently asked questions
Why has median severance dropped since 2023? A higher volume of layoffs across more sectors, combined with companies tightening costs during repeated rounds of cuts, has pulled the overall median downward.
Is severance ever legally required? In most states, no. New Jersey and Maine are notable exceptions with specific circumstances that can trigger a legal severance requirement. Federal WARN Act violations can also create an obligation.
How do I know if my offer is fair for my industry? Comparing your offer against real, reported benchmarks for your specific tenure, role, and industry is more reliable than relying on outdated averages or general rules of thumb.
By The Separation Index
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