NEW YORK (AdAge.com) -- Bloomberg is not responsible for paying the severance packages of the BusinessWeek staff that are let go, The Business Insider has learned from a person familiar with the deal.
McGraw Hill is responsible for paying the severance packages.
This will add to panic BusinessWeek staffers are feeling as they are being interviewed to keep their jobs with Bloomberg.
Because Bloomberg isn't on the hook for paying the severance package, it has less of an incentive to keep BusinessWeek employees.
However, this may have been accounted for in the sale price, so it might not swing Bloomberg's thinking. Plus, Bloomberg has a massive, growing newsroom. Our understanding is that they will look to retain staff where they can.
The question for BusinessWeek employees therefore becomes, is a job at a Bloomberg-run BusinessWeek, or just Bloomberg News in general, a job they want?
According to a BusinessWeek employee, Bloomberg editors ask in interviews, "What would you say if I told you that you were going to work for the newswires from seven to seven?"
In their heads, many BusinessWeek staffers are saying, "No thank you!" But, because they don't know if this is a test or not, they simply say, "Okay."
Working twelve hour days grinding out news stories would be a radical change of pace for many BusinessWeek employees, who've gotten accustomed to writing a few stories a week. And that's if they're on the web side. On the print side, they write even less.
The whispers rattling the halls of BusinessWeek say that if a BusinessWeek employee is offered a comparable job at Bloomberg, but turns it down, then they aren't entitled to their severance package.
Severance deals will be decided on a case-by-case basis.
McGraw Hill has been asked for a comment, and The Business Insder will update if it hears a response.
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Jay Yarow is an editor at The Business Insider.