Trump pushes for lower drug prices, threatens massive tariffs
The Trump administration says it’s given drug companies 60 days to lower prices, but the President has also threatened tariffs of up to 250%.
Scripps News
Companies are offering buyouts to employees to cut costs amid economic uncertainty.Workers facing buyouts must consider their financial health and long-term plans.Buyouts can offer benefits like early retirement but also have financial drawbacks such as tax implications.Consulting a financial advisor is recommended before accepting a buyout offer.
In recent weeks, as major companies have reported their quarterly results, a picture of how the current economic conditions are impacting workforces has become clearer.
As companies are looking to save money to prepare for the financial strain of tariffs, loss of funding through government cuts, and continuing to battle inflation, many have started offering workers buyouts in an effort to save on overall operating costs.
“The recent wave of buyouts underscores the current dynamics of the economy and the changing employment landscape across multiple industries,” said Michael Leland, the Kentucky market leader at PNC Private Bank.
In Louisville, Humana is offering a buyout in the form of a Voluntary Early Retirement Program to some employees, The Courier Journal first reported.
UPS is offering full-time, U.S.-based drivers a “Driver Voluntary Separation Program,” the first time in the company’s history this sort of buyout has been made to drivers, The Courier Journal previously reported. This comes after the shipping giant announced plans for facility closures across the U.S.
And recently a spokesperson for Baptist Health told The Courier Journal the healthcare company has, “offered a voluntary early retirement program with enhanced benefits for eligible employees who expressed interest, and the enrollment window closed in mid-July. This measure does not impact patient care; the communities we serve can continue to expect the same high-quality care they know and rely on.”
The issuing of buyouts across industries has put some workers at a cross roads of choosing early retirement, staying at their current company and weathering the economic turbulence, or entering a labor market showing signs of increasing difficulty for workers to land new employment.
“To me, it also signifies how important it is for workers to be flexible, continue growing their skillsets — especially if they are not financially positioned to retire from the workforce — and ensure they have a solid understanding of their overall financial health,” Leland said. “That way, they are equipped to make an informed, strategic decision if presented with a buyout offer.”
As workers try to understand what options they have after being offered a buyout and how it could impact their lives, The Courier Journal sat down with Leland to discuss how people can prepare financially.
Note: This interview has been lightly edited for clarity and conciseness.
Courier Journal: Should buyouts be cause for concern, why or why not?
Leland: “Like so many milestones in an individual’s career and wage-earning years, the prospect of a buyout represents change, which certainly can be concerning to those experiencing it. However, depending on the individual’s circumstances … a buyout also can be advantageous. For example, a buyout can provide a soft landing for those who may be considering retirement in the near term or a financial infusion for those looking to make a career shift.”
CJ: What should a worker who has been offered a buyout take into consideration before deciding if they should or should not accept it?
Leland: “It’s critical that those considering buyout offers have a clear view of their overall financial picture. Some of the questions workers should ask themselves include: Do I have an adequate cash cushion? How are my medical expenses going to be paid? Will I continue to have health insurance? What is my family’s overall financial situation, including my spouse’s earnings and job security? Do I have a mortgage or other financial obligations? A financial advisor can talk through these questions with individuals who are working through the consideration process.
“It’s also important for individuals to understand when they’ll have access to their 401(k)s, IRAs and pension benefits, since retirement accounts represent a large source of assets for many people — and because there are restrictions on making penalty-free withdrawals. The point at which individuals can access their portfolios without penalty is just part of the equation; ensuring that the portfolio growth can sustain the rate of withdrawal over the period of many years is just as crucial.”
CJ: How does accepting a buyout impact or alter an individual’s financial situation?
Leland: “For some, accepting a buyout offer could be a good way to enter retirement. For others, the prospect of a buyout could translate to an unwelcome financial event and necessitate a career pivot. That’s why it’s important for an individual in this position to talk with a financial advisor who can help evaluate the financial and tax implications of a buyout.”
CJ: Are there financial benefits when someone accepts a buyout?
Leland: “A buyout offer preserves an element of control and decision-making on the part of the worker, representing value that cannot be quantified.”
CJ: Are there financial drawbacks when someone accepts a buyout?
Leland: “For example, if a buyout offer is structured as a one-time payment, that lump sum would constitute taxable income on top of an individual’s salary — which could potentially push the individual into a higher tax bracket in the year the buyout is paid.”
CJ: Any other advice for people offered buyouts?
Leland: “If you’re offered a buyout, take the time you need to make a calculated decision. A buyout represents the end of a chapter in one’s life or career, so it’s important to acknowledge the complex emotions that could be at play — and avoid making a decision based on emotions alone. PNC has a robust Louisville-based team committed to helping individuals and families achieve their financial goals and navigate a variety of wealth and financial planning scenarios with expertise and empathy.”
Contact business reporter Olivia Evans at oevans@courier-journal.com or on X, the platform formerly known as Twitter at @oliviamevans_.