Microsoft expects very few employees to accept its latest voluntary buyout offer, despite extending it to around 60,000 workers. Chief Financial Officer Amy Hood explained the reason in an internal memo. She said the programme gives workers the choice to leave the company voluntarily, but added that Microsoft continues to offer strong growth opportunities. The offer is available to eligible employees in participating teams across India, the US, the UK and Canada.
“I know there have been some questions on the rationale behind the voluntary exit offer that we announced this week,” Hood wrote in the memo, according to Business Insider. “Our intent is to offer employees agency if they choose to leave the company on their own terms. We expect very few people to select this offer because of the growth opportunities here at Microsoft.”
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Hood sends internal memos to employees every quarter when Microsoft announces its financial results. These messages usually cover information shared publicly by the company. However, they also offer a glimpse into the issues that Microsoft executives want employees to focus on.
The latest buyout programme follows a separate retirement offer introduced by Microsoft earlier this year. At that time, around one-third of eligible employees reportedly accepted the offer.
The benefits under the new voluntary exit programme depend on an employee’s internal level and length of service. According to the report, employees at level 64 and below are being offered one week of base pay for every six months of service. Employees at levels 65 to 67 are eligible for two weeks of base pay for every six months of service. However, standard severance payments for employees at level 67 and below are capped at 39 weeks of base pay.
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The package also includes continued stock vesting and health insurance benefits. For employees at level 67 and below, stock-vesting benefits cover six or 12 months, depending on their years of service. Employees at level 68 receive a standard severance package that includes 12 months of salary.
Eligible employees reportedly have until early December to decide whether to accept the offer. The company has not announced plans for another buyout programme at this time.