Microsoft layoffs: Here's the severance package employees are getting after latest job cuts

Microsoft is offering laid-off employees in the US up to 39 weeks of base pay as severance, along with continued stock vesting and health insurance benefits, according to severance offers reviewed by Business Insider.

The generous payout comes days after Microsoft announced it would lay off around 4,800 employees, or roughly 2.1% of its global workforce, as it continues to trim costs while pouring billions into artificial intelligence infrastructure.

Also Read: Microsoft cuts 4,800 jobs as it revamps Xbox


According to Business Insider, the severance package starts with a minimum of 60 days of base pay, during which affected employees will continue to remain on Microsoft's payroll. For most employees, the payout can go up to 39 weeks of base pay, depending on their seniority and tenure.

Employees at internal levels 64 and below will receive one week of base pay for every six months of service, while those at levels 65 to 67 will receive two weeks of base pay for every six months worked. Executives at level 68 and above will receive a separate package.

The package isn't limited to salary. Business Insider reported that employees at level 67 and below will also continue receiving regular stock vesting for six or 12 months, depending on their years of service. Microsoft is also providing six months of company-paid health insurance, followed by the option to continue coverage under COBRA for another year.

The publication said the terms are broadly similar to those offered under Microsoft's earlier Voluntary Retirement Program, although the latest layoffs come with a shorter duration of company-paid health coverage.

Also Read: Microsoft layoffs in July: Who is Asha Sharma? Meet the Xbox CEO who surprised fans with free consoles and is now at the center of Microsoft's layoff storm

The package also appears to be more generous than what several other Big Tech companies have recently offered.

According to Business Insider, Salesforce offers between nine and 30 weeks of base pay as severance, while Oracle provides four weeks of base salary plus one week for every additional year of employment, capped at 26 weeks. Meta, meanwhile, offers 16 weeks of base pay, plus two additional weeks for every year of continuous service.

The latest layoffs largely affect Microsoft's sales and Xbox businesses. Citing an internal email from Chief People Officer Amy Coleman, Business Insider reported that the company is restructuring its workforce even as it plans to spend $190 billion this year, largely on building out its AI infrastructure. Microsoft's Xbox division is also expected to cut around 20% of its workforce by the end of June.