layoff or a buyout

Some people are entitled to very large pension packages when they retire from a company. If they live for a long time after they retire, the company will pay out very large sums of money. This usually only applies to high level management employees.

One option for a company to get a younger employee in the position, and often an employee with whom they will negotiate a much less generous package of benefits, is to buy out the older employee. That means the employee is offered a very large sum of money (but one which is, it is assumed, still less than would be paid out after normal retirement) to retire now, and to relinquish their normal retirement package.

I don't know why you would assume that it has a special cultural or social meaning in the United States. It's simply a business transaction. Many high level executives would take a buyout if it were generous enough, because they have an expectation of getting another job quickly. Even if they don't look for another job, taking a large cash payment can give them the opportunity to start a business of their own, to invest the money for a (hoped for) quick return, or merely to invest it safely and to live off the proceeds.

I see, thanks. So this practice is applicapable to "high income bracket people" in the US. But workers are usually laid off. Do I understand it correctly?

But in China, this word "buyout" is applied to workers, that is, they are not technically laid off, but they are "bought out," with a little sum of money, and they should never come back again for any benefits. But maybe we should not use "buyout" for the Chinese context." I hope you understand what I am talking about.

Essentially, yes. See below.



Sometimes workers who have a very generous benefits package are "bought out" in the United States, auto workers being a good example. This would allow the employer to hire young employees and offer a much less generous benefits package. But this doesn't happen very often--it is usually a reference to high level employees. Absent any other context, i think most Americans would assume it refers to executive level employees.

I don't think it would be inappropriate to use it in the context you refer to for China, but it would be necessary to explain the context.