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Amid Layoffs & Restructuring, Make Sure You Carefully Evaluate Your Severance Package

Thumbnail image for Thumbnail image for Thumbnail image for above-the-bar-logo.jpgPharmaceutical companies have recently announced thousands of planned layoffs. Pharmaceutical giant Novartis announced last month that it plans to cut 1,960 jobs in the U.S. as part of its restructuring. Novartis plans to cut 1,630 sales positions in the field and about 330 positions at its New Jersey headquarters. The job cuts are part of its restructuring due to the expiration of its patent for its hypertension drug Diovan and the failure of a clinical study into another hypertension drug, Tekturna. Novartis expects the job cuts to save it $450 million a year from 2013 after an initial charge of $160 million which will be booked in the first quarter of 2012.

Drug maker AstraZeneca has also recently announced that it plans to cut 7,300 jobs over the next three years. AstraZeneca’s cuts also come as a result of restructuring because it is anticipating its revenues to decline as some of drugs, which are about to lose their patent protection, will face competition from generic drugs
Not knowing when you will find your next job or how you will pay your bills can be terrifying and leave you angry. If you have been laid off or are about to be laid off, stay professional and don’t say anything that you might regret. Remember that you are not the only person being laid off. By staying calm, you can you can have a better handle on your options and your rights. The following are few tips to keep in mind when you are being laid off or about to be laid off:

  • The most important thing to remember is that you don’t want to burn your bridges. You will need references when looking for your next job. Your old supervisor may even be able to refer you to job openings at another company. Stay in touch with your colleagues who also might be able to help you once they have found a job.
  • You are not entitled to a severance agreement but many employers today are providing separation packages. Most companies offer these packages in order to prevent employees from suing for any employment claims that might have risen during their employment. In the event you are offered a severance package, make sure you are not signing away any potential claims you might have based on age, gender, race, national origin, or retaliation. Our attorneys have helped negotiate better severance packages for many laid off employees. Consult with one of our experienced severance attorneys to ensure that your rights are protected.
  • If you have a specialized skill or you’re in sales, beware of signing any non-compete or non-disclosure clauses. For example, if you’re in sales, your client list is your greatest asset when searching for that next job. Be careful of any clauses in a severance package limiting where you can work or which clients you can contact.

If you have recently been laid off, call our Severance Package Attorneys at Villanueva & Sanchala at (800) 893-9645 to discuss your rights and options during this difficult time. Our attorneys can help you evaluate your severance package to ensure that you are not signing away any rights and getting the best severance package possible.

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Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.