• Microsoft is offering buyouts to about 60,000 employees.
• The offers are individualized to each employee based on their level, location, and tenure.
• Business Insider reviewed offers to show what employees get when they leave the company.

As Microsoft sends out its buyout offers to more than a quarter of its workforce, specific offers reviewed by Business Insider reveal exactly what employees get if they choose to leave the company.

The offers are individualized for each employee based on their level, location, and tenure. Those reviewed by Business Insider confirm that the US buyouts align with the company's US standard severance offers. A Microsoft spokesperson said about 60,000 employees would be eligible for the buyout.

Microsoft uses a levels system to represent seniority, from entry levels starting at 59 to senior levels at 70, or vice president. The company offered buyouts to employees on select teams in the US, Canada, India, and the UK at level 70.

Offers reviewed by Business Insider show employees at internal levels 64 and below were offered one week of base pay per six months of service, and employees at levels 65 to 67 were offered two weeks of base pay per six months of service.

Buyout offers also include continued regular stock vesting and health insurance. The standard stock-vesting severance offer is six or 12 months for levels 67 and below, based on years of service.

Eligible employees will have until early December to decide whether to take the offer and exit at the end of the year, and there are no plans for another buyout at this time, a Microsoft spokesperson said.

Standard severance is capped at 39 weeks of base pay for levels 67 and below, while the standard severance offer for level 68 includes 12 months of salary.

Earlier this year, Microsoft rolled out a voluntary retirement program for employees. About 7% of Microsoft's US workforce, or about 8,750 people, were eligible at the time. As Business Insider previously reported, Microsoft's voluntary retirement program offer also aligned with the company's standard severance offer, including continued regular stock vesting for six or 12 months, based on years of service.

Earlier this year, another tech giant, Google, offered buyouts to staff in its business unit, Business Insider previously reported.

As more tech companies offer buyouts, some human resources professionals previously told Business Insider that this approach could soften job cuts, and also that when they're made available to workers of all tenures, companies risk losing talent.

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• Microsoft is offering buyouts to around 60,000 employees.
• The offers will go out later today, and resemble Microsoft's standard severance offer.
• The buyout offer could help Microsoft cut costs and reshape its workforce for the AI era.

Microsoft is offering buyouts, according to a memo Chief People Officer Amy Coleman sent to employees Monday.

"The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," Coleman wrote.

Microsoft's voluntary exit offer is the company's latest attempt to slim its workforce without another round of involuntary cuts. After spending heavily on AI infrastructure and reducing headcount this year, Microsoft is offering remaining employees a chance to leave, testing whether voluntary departures can cut costs.

Eligible employees in the U.S., Canada, India, and the U.K. at level 70, which includes senior leaders at the company, and below, will receive an email later Monday with the terms of the offer. Only some teams are participating, excluding sales organizations, some engineering, and some corporate functions.

Around 60,000 employees — or more than a quarter of the company's workforce — about will be eligible, a spokesperson told Business Insider, and the terms will be similar to Microsoft's standard severance.

The US severance package offered when Microsoft laid off employees earlier this year included a minimum of 60 days of base pay, during which employees will remain on the payroll, and, for most employees, up to a maximum of 39 weeks of base pay, based on seniority and tenure.

Employees at internal levels 64 and below received one week of base pay per six months of service, for example, and employees at levels 65 to 67 will receive two weeks of base pay per six months of service, according to offers reviewed by Business Insider.

Eligible employees will have until early December to decide whether to take the offer and exit at the end of the year, and there are no plans for another buyout at this time, Microsoft's spokesperson said.

The buyout offer follows Microsoft's Voluntary Retirement Program, which offered a retirement buyout to about 9,000 eligible employees based on age and tenure.

About one-third of eligible employees took the buyout, in line with expectations, a person familiar with the turnout told Business Insider in June. That buyout allowed Microsoft to lay off a lower percentage of its workforce compared to last year, the person said at the time.

Read the memo:

Introducing a Voluntary Exit Offer

Today, we're introducing a new Voluntary Exit Offer (VEO) to eligible employees within participating organizations. This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating orgs another way to adapt their workforce to changing needs.

The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter. This builds on what we learned earlier this year through the Voluntary Retirement Program.

What employees should know

This offer will be available to eligible employees in participating teams in Canada, India, United Kingdom and United States at level 70 and below. This is a time-limited, voluntary program that gives those who are eligible the opportunity to leave Microsoft with financial support and career planning resources. Some organizations are providing the Voluntary Exit Offer, and some are not. Participation varies based on each business's priorities, customer commitments, and workforce needs.

Eligible employees will receive an email with a link to their Voluntary Exit Offer details within the next few hours.

Looking ahead

The Voluntary Exit Offer is new for us. We'll learn from it. At the same time, we'll keep helping people focus on the work that matters most, build new skills, and, where it makes sense, find new opportunities across Microsoft. There is no one-size-fits-all approach for every team or every employee. These are a few of the ways we're trying to meet different business needs while continuing to create opportunities for our own people to grow and contribute.

My promise is to continue to provide clarity, listen and learn, and keep improving.

Thank you for everything you continue to do for our customers, Microsoft, and for one another.

Amy

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