worker buyout

worker buyout definition - business

worker buyout

  1. An attempt by an employer to reduce the size of its workforce by offering financial incentives to employees who agree to terminate their employment with the firm. Workers may be required to surrender retirement and health benefits as a condition for receiving the financial incentives.
  2. Acquisition of a business by its employees. Worker buyouts generally occur when a business is in bankruptcy or severe financial difficulty and employees are concerned about losing their jobs.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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