Microsoft has begun distributing voluntary buyout packages to roughly 60,000 employees, and the terms spell out exactly what departing staff can expect based on seniority and tenure.
The offers, reviewed by Business Insider, cover select teams across the US, Canada, India, and the UK at level 70, the highest rung on Microsoft’s internal ladder. Employees have until early December to accept and exit by year’s end. A company spokesperson confirmed no additional buyout round is currently planned.
Compensation scales with an employee’s internal level. Workers at level 64 or below receive one week of base pay for every six months of service. Those at levels 65 through 67 get double that rate: two weeks per six months. Standard severance caps out at 39 weeks of base pay for levels 67 and under, while level 68 staff qualify for a full 12 months of salary.
Stock vesting continues on a regular schedule under these packages. Depending on tenure, employees at level 67 or below can expect vesting to last either six or 12 months. Health insurance also remains intact as part of the deal.
The buyout terms mirror Microsoft’s standard US severance structure. Earlier this year, the company rolled out a voluntary retirement program that reached about 8,750 US employees, or 7% of its domestic workforce. That earlier offer followed the same formula, including the extended stock vesting schedule.
Microsoft relies on a level system that runs from entry-level 59 up through senior roles at 70, which corresponds to vice president positions. The latest buyout wave targets that top tier in several regions as part of a broader cost-restructuring push.
Meanwhile, Google also extended exit packages to staff in its business unit earlier this year, signaling a wider trend among tech giants. HR professionals note that voluntary buyouts can soften the blow of layoffs, but they also warn that opening such offers to employees regardless of tenure risks losing some of the company’s most valuable talent.
