A tipster corrects our math. Severance pay and "related cash expenditures" will cost Yahoo a surprisingly low $25 million — because the company may not pay annual bonuses on March 14 to its 1,000-plus laid-off employees. The savings may range as high as $14 million, he estimates. Bonuses are always awarded at the discretion of managers — and why would they give a bonus to someone no longer with the company?
Here's the new math: Add back in the savings Yahoo achieves by not paying bonuses. That implies Yahoo will pay some $34 million to $39 million in severance. Call it $36.5 million, divide it by 1,000 employees and the average severance package comes out to $36,500 for three months. Figure the average laid-off Yahoo employee made closer to $150,000. Most can get by without the bonus, I reckon. (Photo by .A.A.)