Microsoft released details of its buyout offer for long-serving employees in an internal document viewed by Business Insider.
Microsoft last month announced it would offer buyouts to employees at level 67 and below in the US who have 70 or more years of age and service. Microsoft said it would share the details with employees on May 7.
The buyout offer helps Microsoft cut costs as it plans significant spending, including $190 billion in capital expenditures this year, primarily related to its AI infrastructure buildout. The company recently said it expects head count to decrease in the coming quarters.
Business Insider obtained a full copy of the document, an internal explanation of the so-called Voluntary Retirement Program (VRP). According to the document, eligible employees who take the buyout will receive:
- A lump-sum cash payment equal to a minimum of eight weeks and a maximum of 39 weeks of base pay, based on seniority and tenure. Employees levels 64 and below will receive one week of base pay per six months of service, and employees levels 65 to 67 will receive two weeks of base pay per six months of service.
- Up to five years of insurance coverage, including medical, dental, and vision for the employee and their dependents. Microsoft pays for the first year.
- Continued regular stock vesting for six or 12 months, based on years of service.
- Continued retirement stock vesting for employees who meet certain requirements.
- Last day of employment July 1.
Employees with less than 24 years of service will receive six months of unvested stock awards after their employment ends. That vesting period will expand to 12 months for employees with more than 24 years of service.
The document states Microsoft has no plan to offer another voluntary retirement program in the future.
Read the full details of Microsoft’s buyout package (edited for length and clarity):
- Microsoft employees on US Payroll at Level 67 or below who are not on a sales and services incentive plan (namely a S, T, D, V, M, or P (other than P2) Plan); and
- Employees whose age + years of service (as of June 30, 2026), each rounded to the nearest whole number, equals 70 or more (Rule of 70).
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