Microsoft has begun sending buyout offers to over a quarter of its workforce, with specific details reviewed by Business Insider revealing what employees receive if they choose to leave. The offers vary based on factors like level, location, and tenure, but align with the company's standard severance policies in the US. A Microsoft spokesperson confirmed that around 60,000 employees are eligible for these buyouts.
The company's internal levels system, ranging from entry-level 59 to senior-level 70, determines the buyout terms. Employees at levels 64 and below are offered one week of base pay per six months of service, while those at levels 65 to 67 receive two weeks of base pay per six months. All eligible employees will have until early December to decide whether to accept the offer and exit by the end of the year.
In addition to base pay, the buyout packages include continued stock vesting and health insurance. The standard stock-vesting severance offer is six or 12 months for levels 67 and below, depending on years of service. The standard severance is capped at 39 weeks of base pay for levels 67 and below, while level 68 employees are offered 12 months of salary.
Earlier this year, Microsoft introduced a voluntary retirement program for about 7% of its US workforce, or approximately 8,750 people. The program's offer also aligned with the company's standard severance policies, including continued stock vesting for six or 12 months. Other tech giants, like Google, have also recently offered buyouts to staff in certain business units.