This might be true, but personally I'd rather the company try to remain a going concern.
You could refuse the severance as an employee if you wish to go down swinging.
Edit: Knowing the company is doomed in a month or 2 and not employees offering severance is not a good thing yo do, in my book.
Has anyone at Convoy claimed this?
That being said if you're burning $30M+ every month in the current financial market I really hope you cancelled all your catering contracts a long time ago.
If no one was picking up their calls and it was obvious, then sure.
Not much is really that clear though.
In my tiny case a while back, I wiped my liquid savings to get me employees some time. Can't do that with over a thousand employees though!
I've heard it said that every boss of a failed company will tell you that they almost got a last minute investment, or almost made a big sale, or almost got acquired, if they'd only had an extra week or two it'd have all been different.
Of course that could be wishful thinking - or a sign that in the final days they were offering fire sale prices.
Manic founders who insist that a rescue will come right up until the last second often leave people feeling burned and don't get as many second chances when things don't go well.
There is a big difference between a less than 1% chance and an 80% chance here. Part of the job is knowing that difference, and how to handle/communicate it.
It's pretty easy to say "oh you should have done this differently" with almost zero actual knowledge of the situation or experience.
Not surprising though, that Elon would be in the same camp as this Convoy CEO, not likely to shed too many tears over worker concerns.
Elon has said several variations of this have happened on several occasions.
And yet this fragility never really made it into IR reports or SEC filings or annual reports.
So either he exaggerates (shocking concept from a man whose company has on multiple occasions had to follow him around and say "his claims of Tesla doing X, or doing it by Y date, are visionary, and not statements of fact"), or there's some hinky accounting going on.
FedEx famously (allegedly) came down to a hand of blackjack in Vegas to make payroll & avoid bankruptcy.
https://www.businesstoday.in/amp/technology/news/story/elon-...
Also where were you during 2017, 2018 period when the doomsayers (aka TESLAQ) predicted the same so often? So much so that this tweet became famous?
https://x.com/elonmusk/status/980566116614291456?s=46&t=yN2X...
(I'm just trying to nail down the timeline of full truths/no cap from Elon.)
It’s nothing like a layoff. For example, imagine that you are a supplier to company A and now your contract is both unpaid and cancelled and you’re going to have to lay off some of your own staff. Do you recover the contract money from company A, to give your staff severance? Or can company A stiff you and use it to give their own staff severance? (No, they can’t.)
