Some Microsoft employees will be offered healthcare, cash, and stock vesting as part of a voluntary retirement package.
Microsoft recently announced plans to give long-serving US employees the option to voluntarily retire. The buyout terms, posted early on Microsoft’s internal HR website, reveal that employees whose combined years of service and age total 70 or more are eligible. The retirement package includes five years of healthcare coverage, a lump sum cash payment, and six months of vesting for unvested stock options.
The healthcare is fully subsidized by Microsoft for the first year, with a monthly premium for the remaining four years. The cash payment varies: mid-senior level employees (level 64) receive a week of pay for every six months of service (up to 39 weeks), while senior positions (levels 65-67) receive two weeks per six months, up to the same maximum. For stock options, the vesting extends to 12 months for those with 24+ years of service.
Around 7% of Microsoft’s US workforce, about 8,750 employees, qualify for this buyout. This marks Microsoft’s first voluntary retirement program in its 50-year history. Employees have 30 days to decide on the offer.
Last month, Microsoft stated it would incur a $900 million charge in the current quarter for this one-time program, approximately equivalent to a day of its revenue, as noted by GeekWire.