Microsoft reveals severance benefits after layoffs, offers up to 39 weeks salary
Follow UsMicrosoft has announced layoffs affecting thousands of employees.
Eligible workers will get pay support and other benefits.
Microsoft’s severance package is among the highest in tech.
Microsoft has recently announced another round of layoffs, cutting around 4,800 jobs across multiple divisions, including its Xbox gaming business. While this has been a yearly thing for the tech giant, now one of the good parts in this mix is that the company has now shared the severance package details for affected employees in the United States. The employees who are eligible for the severance package will receive at least 60 days of base pay, with some getting up to 39 weeks of pay depending on their job and how long they worked at Microsoft. In addition to that, some employees will also continue to receive stock benefits for a period and temporary health insurance after leaving the company.
SurveyMicrosoft’s severance package
Microsoft’s severance package begins with a minimum of 60 days of base pay, during which affected employees will remain on the company’s payroll. Most eligible employees can receive up to 39 weeks of base pay based 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 get two weeks of base pay for every six months worked. Executives who are at level 68 and above will receive a separate package whose details are under the wrap at the time of writing.
For example, if an employee earns an annual base salary of $1,00,000, the maximum severance of 39 weeks would be worth about $75,000, which is roughly around Rs 6.45 lakh. However, the exact amount the employee will receive will vary according to their base salary and years of service they have provided.
Other benefits
Microsoft will also continue regular stock vesting for employees at levels 67 and below, and depending on how long they have worked at the company, eligible employees will receive continued vesting for either six or 12 months.
The company will also provide six months of paid health insurance coverage after an employee leaves. Furthermore, they will also have an option to continue their health insurance for another 12 months through COBRA once the 6 months of insurance coverage end. Though the extended coverage will be at their own cost.
Also read: After 37 years at Microsoft, Xbox VP shares emotional message after losing his job
Microsoft vs rivals’ severance packages
The financial support Microsoft is giving to recently laid-off employees is similar to the voluntary retirement programme it offered earlier this year. The main difference is that the current package includes a shorter period of health insurance.
Compared with other companies, Microsoft’s severance package is more generous. Salesforce offers up to 30 weeks of base pay, Oracle offers up to 26 weeks, and Meta provides 16 weeks plus two extra weeks for each year of service. Microsoft’s maximum payout of 39 weeks is one of the highest among major tech companies.
