employees were given until August 10 to decide whether they want to take the buyout, which amounts to nine months of salary
This isn't a "buyout" and it certainly isn't "making them whole" which is what they said they'd do a couple of weeks ago. This is just a layoff with a severance payment.
As I said when the initial story broke, this is setting a terrible precedent for the startup world. Why on earth would anyone join a startup and accept low cash comp in exchange for equity if the default terminal event will be an acqui-hire of the founders with all other employees being shown the door rather than an IPO or acquisition?
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This isn't a "buyout" and it certainly isn't "making them whole" which is what they said they'd do a couple of weeks ago. This is just a layoff with a severance payment.
As I said when the initial story broke, this is setting a terrible precedent for the startup world. Why on earth would anyone join a startup and accept low cash comp in exchange for equity if the default terminal event will be an acqui-hire of the founders with all other employees being shown the door rather than an IPO or acquisition?