Microsoft Offers Up to 39 Weeks Severance to US Employees

Microsoft is offering US employees affected by recent workforce reductions a severance package that includes up to 39 weeks of base pay, according to information reviewed by Business Insider. This package begins with a minimum of 60 days of base pay, with the total duration determined by an employee's tenure and seniority level within the company. In addition to salary continuation, laid-off employees will receive regular stock vesting for a period of six to 12 months, contingent on their years of service.

The company is also extending health insurance coverage for six months post-employment, with an option for an additional year of COBRA coverage. The severance amount varies by internal job level: employees at levels 64 and below will receive one week of base pay for every six months of service. Those at levels 65 to 67, encompassing principal and director roles, will receive two weeks of pay for every six months of service. Executives at level 68 and above have a distinct severance arrangement.

These layoffs primarily affected Microsoft's sales and Xbox divisions. Xbox, in particular, is undergoing a significant restructuring, with plans to reduce its staff by 20% by the end of the fiscal year. This restructuring has impacted long-tenured employees, including an Xbox vice president with 37 years at the company. One laid-off employee in India reported receiving eight weeks of severance after their active employment concluded in mid-October, noting the current hiring market is challenging.