Laid off from Amazon? Your severance, RSUs and 401(k), in order
Amazon’s Washington WARN notice, received November 2, 2026, covers about 95 employees in Seattle, Bellevue, Redmond, Pasco, Sumner and remote roles, with separations from December 7, 2026 through January 25, 2027. Unvested RSUs generally end with the job, the 401(k) match has a vesting rule, and severance paid after a January last day is 2027 income. Here’s the order to take it in.
Educational resource Updated November 9, 2026
Update log
Published with the Washington notice received November 2, 2026 (about 95 employees).
Washington employees on the November 2 notice
About 95
separating January 5, 2027, the largest group
43
of notice before each separation date
90+ days
of vesting service before the 401(k) match is yours
3 years
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Start here
Your plan, in about a minute
Tell us what brought you here and answer only the questions that matter for it. You’ll get the first three things to do, with your own numbers.
StartWhat brought you here
What brought you here today?
Pick one or more. We’ll only ask what those need.
Step 1
Estimate your packet
Four numbers give you the severance, the tax it will likely leave unpaid, and your deadlines.
Estimated severance$75,000
26 weeks × $2,885 a week
Withheld for federal tax
$16,500
Flat 22% supplemental rate
Likely federal tax shortfall
$1,314
Top bracket: 24%
At 45, a group-layoff release generally must give you 45 days to decide and 7 to revoke.
Amazon’s benefits overview says the 401(k) match vests after three years of vesting service, each a calendar year with 1,000 hours. Check your vesting percentage on your plan statement before you leave.
Set aside about $1,300, or make an estimated payment before January 15.
Add your last day to see your personal deadlines.
Amazon doesn’t publish a severance formula. Its notice says severance information comes separately on or before each separation date, so the estimate uses the weeks in your letter. The tax estimate uses 2026 federal brackets and the standard deduction, and assumes nine months of salary this year. An educational estimate, not tax advice; confirm with your financial professional. Nothing you enter is sent, and it’s saved on this device only if you choose to remember your answers.
Step 2
A worked example
Hypothetical. A software development manager, 41, single, with 7 years at Amazon and a $185,000 base. Separation date: January 5, 2027. Suppose the letter offers 12 weeks.
The packet, in dollars
Severance: 12 weeks of base pay
$42,692
Federal tax withheld at 22%
−$9,392
Federal tax actually owed on it, at a 24% top bracketPaid in 2027, on top of about $2,000 of January salary and $106,000 from a new job that starts in May
−$9,970
Shortfall to set aside before April
$578
Unvested RSUs and options forfeitedDoesn’t meet the retirement test
$90,000
Also in the picture
12 weeks of base pay is $42,692, paid after the January 5 separation date
$90,000 of unvested RSUs that end with the job under the award terms
$140,000 in the 401(k), with the match fully vested after 7 years
1
Before January 5
Keep looking internally. The notice says an internal transfer accepted before the separation date avoids the separation.
2
Before January 5
List every RSU grant and its next vest date. Ask HR to confirm in writing which vests before January 5 will be delivered; the rest end with the job.
3
When the packet arrives
Ask HR the checklist questions and send the release to an employment attorney. At 41 in a group layoff, there are generally 45 days to decide and 7 to revoke.
4
January 2027
Compare COBRA with a Marketplace plan for January to May, when income is low until the new job starts.
5
Before the check
Paid in 2027 with the new job’s pay, the top federal bracket is 24%, so set aside about $600 beyond the 22% withheld. Washington has no state income tax on wages.
6
No rush
Confirm the 401(k) shows 100% vested, then keep the plan, roll it to an IRA or the new employer’s plan, or both.
Step 3
Deadlines that start on your last day
Handle what can’t be undone first. The retirement accounts can wait, as long as you don’t cash them out.
Until your separation dateYou’re still an Amazon employee
The notice says employees are paid the wages and benefits they’re entitled to through the separation date, provided they don’t resign, and that an internal transfer accepted before that date avoids the separation.
Before you signRead the separation agreement and its release
If you’re 40 or older and part of a group layoff, federal law generally gives you at least 45 days to consider a release and 7 days to revoke it, plus a list of the ages and job titles of who was and wasn’t selected.
On your last dayUnvested RSUs end
Amazon’s award terms forfeit the unvested portion of an award when employment ends for any reason, and vesting isn’t extended by any notice period. Know which vests land before your date.
Within 60 daysElect COBRA
You generally have 60 days from the later of losing coverage or getting the COBRA notice to elect it. Amazon says transition support includes health insurance benefits “as applicable”; ask HR exactly what continues and for how long.
Step 4
Amazon’s plans, decoded
Severance and transition support
Amazon’s notice: severance information comes separately, on or before each separation date
Amazon’s January 2026 announcement: most US employees got 90 days to look for a role internally
Transition support: severance pay, outplacement services and health insurance benefits (as applicable)
No public formula: your letter states your weeks
Your decision: Whether to keep looking internally or take the package, and when to sign. The release unlocks the severance.
Match: 50 cents per dollar on contributions up to 4% of eligible pay, so up to 2%
The match vests after three years of vesting service
A vesting year is a calendar year with 1,000 hours of service
Administered through Fidelity
Your decision: Check your vested percentage before your last day, then keep the plan, roll it to an IRA or a new employer’s plan, or both. Never cash it out.
Amazon’s letter says “approximately 95 employees” and that each received at least 90 days’ notice. Amazon may have filed in other states too; this page lists the notice confirmed for Washington. A notice states what was planned; final numbers can differ. Checked November 9, 2026.
Questions people ask
How many Amazon employees are being laid off in Washington?
Amazon’s WARN notice to the Washington Employment Security Department, received November 2, 2026, covers about 95 employees in Seattle, Bellevue, Redmond, Pasco, Sumner and remote roles. Separations run from December 7, 2026 through January 25, 2027.
Do I keep my unvested Amazon RSUs if I’m laid off?
Generally no. Amazon’s RSU award terms say the unvested portion ends automatically when employment ends for any reason, and vesting isn’t extended by any notice period. Units that vest before your separation date are yours. Your award terms control.
How much severance does Amazon pay?
Amazon doesn’t publish a formula. Its notice says severance information comes separately on or before each separation date, and its announcements describe severance pay, outplacement and health insurance benefits as transition support. Use the weeks in your letter.
Am I still paid during Amazon’s 90-day notice period?
The notice says affected employees are paid the wages and benefits they’re entitled to through their separation date, provided they don’t resign. Accepting an internal transfer before that date avoids the separation.
Will I lose my Amazon 401(k) match?
Only the unvested part. Amazon’s benefits overview says the match vests after three years of vesting service, each a calendar year with 1,000 hours. Check your plan statement for your vested percentage. Your own contributions are always yours.
Does Amazon have a pension?
Amazon’s 10-K describes no US defined benefit pension. For most employees, the 401(k) and any vested Amazon shares are the retirement accounts to plan.
WealthPlannerPro and Morrowgate Private Wealth are not affiliated with Amazon.com, Inc. This guide uses public filings and Amazon’s published benefit and company pages; your own plan documents, award agreements and separation agreement control.
Educational resource only. This guide explains how layoff benefits generally work, using public filings. It isn’t personalized financial, tax, legal or investment advice, and it isn’t a recommendation to take any action. Figures may be incomplete or out of date, and your plan documents, award agreements and separation agreement control. Before you act, talk with your financial professional and a tax advisor, and have an employment attorney review any release before you sign it.
Laid off from Amazon? Get the order right.
Tell us what’s in your separation packet: the weeks of pay, the signing deadline, your RSUs and the 401(k). We’ll point out what may need attention first and whether a conversation with a financial professional would help.
This page is an educational resource. Submitting a question does not begin an advisory relationship.