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Microsoft Reveals Terms of First U.S. Voluntary Retirement Program

The plan targets older, long‑tenured employees to trim headcount without another round of cuts.

Overview

  • Microsoft published the full offer on its internal HR site earlier than planned, which starts a 30‑day window for eligible employees to decide.
  • About 7% of its U.S. workforce, roughly 8,750 people, qualify under a “Rule of 70” that adds age to years of service.
  • The package includes five years of medical, dental, vision, and well‑being coverage, with only the first year fully paid by Microsoft.
  • Severance and equity terms scale with tenure and level, paying up to 39 weeks of base pay and accelerating six to 12 months of unvested stock.
  • Microsoft expects a one‑time $900 million charge for the program in the current quarter.