Microsoft Offers Up To 39 Weeks’ Salary, Stock, Health Support To Laid-Off Workers

Microsoft has outlined an enhanced severance package for employees affected by its latest round of workforce reductions, offering eligible workers up to 39 weeks of base salary, continued stock vesting, and extended healthcare coverage as part of its exit benefits. 

The move follows the company’s decision to eliminate around 4,800 positions, which account for approximately 2.1% of its global workforce.

The severance benefits vary according to an employee’s job level and length of service. Employees in internal levels 64 and below will receive one week’s base pay for every six months of service, while those in levels 65 to 67 will be eligible for two weeks’ base pay for every six months worked. Senior executives at level 68 and above will be covered under a separate executive severance programme.

Beyond salary compensation, Microsoft will continue vesting eligible employees’ stock awards for six months. Employees with 24 years or more of continuous service will receive stock vesting for up to 12 months. 

According to a People Matters report, the company will also provide six months of employer-paid healthcare coverage, after which employees can extend their benefits for up to another year through COBRA, the US health insurance continuation programme.

The package closely mirrors the terms Microsoft introduced earlier this year under its Voluntary Retirement Program, reflecting the company’s effort to provide financial stability and benefits continuity during the transition. Affected employees will also receive at least 60 days’ notice before their employment formally ends.

The layoffs are part of Microsoft’s broader organisational restructuring as it reallocates resources toward AI and cloud infrastructure. The latest reductions have impacted several business units, including sales and Xbox, as the company seeks to streamline operations while continuing multi-billion-dollar investments in next-generation AI technologies.

Microsoft has outlined an enhanced severance package for employees affected by its latest round of workforce reductions, offering eligible workers up to 39 weeks of base salary, continued stock vesting, and extended healthcare coverage as part of its exit benefits. 

The move follows the company’s decision to eliminate around 4,800 positions, which account for approximately 2.1% of its global workforce.

The severance benefits vary according to an employee’s job level and length of service. Employees in internal levels 64 and below will receive one week’s base pay for every six months of service, while those in levels 65 to 67 will be eligible for two weeks’ base pay for every six months worked. Senior executives at level 68 and above will be covered under a separate executive severance programme.

Beyond salary compensation, Microsoft will continue vesting eligible employees’ stock awards for six months. Employees with 24 years or more of continuous service will receive stock vesting for up to 12 months. 

According to a People Matters report, the company will also provide six months of employer-paid healthcare coverage, after which employees can extend their benefits for up to another year through COBRA, the US health insurance continuation programme.

The package closely mirrors the terms Microsoft introduced earlier this year under its Voluntary Retirement Program, reflecting the company’s effort to provide financial stability and benefits continuity during the transition. Affected employees will also receive at least 60 days’ notice before their employment formally ends.

The layoffs are part of Microsoft’s broader organisational restructuring as it reallocates resources toward AI and cloud infrastructure. The latest reductions have impacted several business units, including sales and Xbox, as the company seeks to streamline operations while continuing multi-billion-dollar investments in next-generation AI technologies.