Visa Layoffs Fuel Debate Over Tax on Severance Pay
Visa has laid off around 7% of its workforce, sparking debate over tax on severance pay. Saurav Kundu, a senior manager at Visa, shared a LinkedIn post arguing that taxing severance is 'inhumane' and should be changed.
Kundu pointed out that severance pay is meant to provide financial support during an unexpected job loss and should not be subject to income tax. He added that such compensation helps employees manage financial uncertainty while searching for new opportunities.
His remarks resonated with professionals, entrepreneurs, and corporate employees who echoed similar concerns about the current tax treatment of severance packages. Many argued that taxing compensation meant to cushion the impact of layoffs places an additional burden on employees who are already dealing with income loss and career uncertainty.