Key Takeaways
- Vested RSUs are yours to keep
- Unvested RSUs are usually forfeited
- Ask about acceleration in severance negotiation
RSUs After Layoff
"I have $200K in unvested RSUs—are they just gone?" — Usually, yes. But let's understand what you actually have.
RSU Basics
| Term | What It Means |
|---|---|
| RSU | Restricted Stock Unit—a promise to give you stock |
| Vested | Condition met; shares are now yours |
| Unvested | Condition not met; still a promise |
| Vesting Schedule | Timeline when RSUs convert to actual shares |
What Happens at Layoff
| Type | What Happens |
|---|---|
| Vested RSUs | You own these shares. Nothing changes. |
| Unvested RSUs | Typically forfeited. Gone. |
| Partially vested grants | You keep vested portion, lose the rest |
The Unvested RSU Pain
This is one of the hardest parts of a tech layoff. You might have:
- $200,000 in unvested RSUs that disappear overnight
- Grants that were 3 months from vesting
- Years of "compensation" that never materializes
Important reframe: Unvested RSUs were never really yours. They were a retention tool contingent on continued employment. The pain is real, but the loss is of something you never actually had.
Acceleration: The Exception
Some situations trigger "acceleration"—immediate vesting of some or all unvested RSUs:
| Trigger | Likelihood |
|---|---|
| Mass layoff with negotiated acceleration | Sometimes |
| Change of control (acquisition) | Often (if in your agreement) |
| Death or disability | Usually |
| Negotiated in severance | Possible—always ask |
2023-2025 Tech Layoff Examples:
- Google: 16 weeks + 2 weeks/year + 6-month RSU acceleration
- Microsoft: Offered continued vesting of stock awards for six months
- Meta: Some acceleration for long-tenured employees
These are exceptions, not the rule—but they show what's possible in negotiation.
In severance negotiation, ask:
- "Can any unvested shares be accelerated?"
- "What about grants that are close to vesting?"
- "Is partial acceleration possible for long-tenured employees?"
The answer might be no, but it costs nothing to ask.
Tax Considerations
| Situation | Tax Treatment |
|---|---|
| RSUs vested while employed | Already taxed at vesting |
| Selling vested RSU shares | Capital gains/losses |
| Unvested RSUs forfeited | No tax consequence (never owned) |
If you have vested RSU shares, track your cost basis carefully. It's the fair market value on the date they vested (when taxes were paid), not when you sell.
What typically happens to unvested RSUs when you are laid off?