On Monday, Microsoft offered voluntary buyouts to around 60,000 employees across its teams in India, UK, US and Canada. The company described it as “a time-limited, voluntary program that gives those who are eligible the opportunity to leave Microsoft with financial support and career planning resources.” However, Microsoft expects ‘very few’ employees to actually accept the offer.
A Microsoft spokesperson told Business Insider that it expects 3,000 or fewer employees to take up the Voluntary Exit Offer (VEO).
“Very few” employees to acceot buyout offer
This point was emphasized by Amy Hood, Chief Financial Officer at Microsoft, in an internal company memo on Wednesday.
"I know there have been some questions on the rationale behind the voluntary exit offer that we announced this week," Hood wrote. "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."
(Also read: Microsoft’s buyout offer to 60,000 staff includes base pay, health insurance, stock vesting: report)
Microsoft’s buyout offer to employees
The buyout offer was extended to 60,000 employees — more than a quarter of Microsoft’s total workforce. It was offered to eligible personnel in the United States, Canada, India, and the United Kingdom whose experience classification falls at level 70 or below.
{{/usCountry}}The buyout offer was extended to 60,000 employees — more than a quarter of Microsoft’s total workforce. It was offered to eligible personnel in the United States, Canada, India, and the United Kingdom whose experience classification falls at level 70 or below.
{{/usCountry}}The payouts are structured around an internal experience scale for employees from level 59 to Level 70.
Staff at Level 64 and below will receive one week of base pay for every six months of service at the company. Those ranked from Levels 65 to 67 will receive two weeks of base pay per six months, with overall financial severance capped at 39 weeks of pay. The standard severance offer for level 68 includes 12 months of salary.
(Also read: Microsoft offers voluntary buyouts to around 60,000 employees in India, US, Canada and UK)
Beyond compensation, the voluntary exit deal includes equity protections to help leaving workers retain their earned stock rewards. Depending on their specific tenure and job tier, eligible employees will receive between 6 to 12 months of accelerated stock vesting.
Microsoft is also offering extended healthcare subsidies as part of the package. Eligible employees have until early December to decide whether to accept the exit terms.