The debate over return-to-office mandates has taken another turn — and this time, it highlights just how much leverage employers currently hold over their workforces.
NBCUniversal, the media giant behind NBC, Universal Pictures, and Peacock, is offering employees a severance package if they refuse to comply with its new RTO mandate. But unlike traditional packages, which scale based on years of service, NBCU’s deal offers a flat payout of eight weeks’ salary for everyone — regardless of tenure.
The unusual approach, some experts warn, could have long-term consequences for employee loyalty and retention, even if it reflects the current imbalance of power in the labor market.
Breaking from Tradition
Typically, severance packages are calculated based on tenure, rewarding long-serving employees with larger payouts that act as a safety net if they’re laid off. NBCU’s new offer ignores that standard. Instead, employees at the VP level and below in the US and UK can take eight weeks of base pay if they decline to return to the office.
An NBCU spokesperson declined to comment on the internal policy, but leadership experts see the risks.
“If more companies follow this example, employees may stop seeing loyalty as valuable,” said Raj Namboothiry, head of US operations at staffing firm Manpower. “If a future severance package looks the same whether you stay two years or twenty, why would anyone commit to the long haul?”
Why NBCU Might Be Doing It
While the offer is flat, it isn’t entirely punitive. Employees have until October 3 to accept the package, and NBCU is requiring those who opt in to stay through the end of 2025. That gives remote-preferred staffers a runway of nearly four months to search for new roles in a tight job market.
“It could be especially attractive for newer or lower-level employees who wouldn’t normally qualify for much severance under a tenure-based system,” said Anna Tavis, chair of NYU’s Human Capital Management department. “For them, eight weeks of pay might feel generous.”
But for long-tenured employees, the same payout could feel like a slight. A veteran who might otherwise have been entitled to six months or more of severance will instead walk away with the same check as a colleague who joined last year.
Employers Hold the Upper Hand
Analysts note that NBCU’s move underscores a broader truth: employers currently hold the leverage. With more people looking for jobs than positions available, companies can afford to be tougher with mandates and packages.
“Employers have the leverage right now,” said Nicole Kyle, cofounder of CMP Research. “But the labor market is going to remember.”
That means while workers may reluctantly accept fixed severance packages today, they could avoid companies with such reputations once job opportunities expand again.
Precedents From Other Companies
Fixed severance offers are not unprecedented — but they’re rare. In late 2021, online mortgage lender Better.com laid off nearly 900 employees and offered each of them 60 days of severance, regardless of tenure.
A more infamous case came in late 2022 when Elon Musk demanded Twitter employees commit to an “extremely hardcore” workplace culture. Those unwilling to comply were offered three months of severance. Thousands chose to walk away.
NBCU’s case is less abrupt. Its payout is voluntary, and workers have months to prepare. But experts caution that RTO mandates paired with severance offers may increasingly become a way for companies to reduce headcount without calling it a layoff.
Risks for NBCUniversal
While NBCU’s approach may help it avoid the reputational fallout of mass layoffs, it comes with risks. Top talent — particularly employees with portable skills — may be the first to walk out the door, leaving the company with fewer high-performers.
“You often first lose the people who have other options,” Tavis warned. “That could mean they end up at competitors who offer more flexible hybrid arrangements.”
In other words, NBCU may succeed in enforcing stricter workplace discipline, but it could also unintentionally accelerate brain drain in a highly competitive media industry.
The Bigger Picture
NBCU’s one-size-fits-all severance package is a test case for how companies balance cost-cutting, compliance, and culture in the post-pandemic workplace. For now, employers may feel confident wielding that power. But if the labor market shifts in favor of workers, policies like these could hurt recruitment and retention for years to come.
As Kyle put it bluntly: “The labor market will remember.”
