HCM & HRIS

Microsoft layoffs: Some employees could get up to 39 weeks salary as part of exit package – severance package details here

July 8, 2026
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< />Losing a job is never easy. But for thousands of Microsoft employees affected by the company’s latest round of layoffs, the exit package may soften the blow.<br><br>The tech giant has shared details of what affected employees in the US will receive, and for some, the severance package could be worth up to 39 weeks of base salary, along with healthcare benefits and continued stock vesting.<br><br><!– PROMOSLOT_M –>The layoffs are part of Microsoft’s latest restructuring exercise, which has affected around 4,800 employees across its global workforce.<br><br><div class=” article-detail-ad-slot=”” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/132272369.cms” height=”442″ loading=”eager” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” width=”590″></img></p> </div> <h2>Employees Won’t Leave Right Away</h2> <p>Those impacted won’t be shown the door immediately.</p> <p>According to a Business Insider report, Microsoft will keep affected employees on its payroll for at least 60 days. During this period, they’ll continue receiving their regular salary just as before.</p> <p>Once those 60 days are over, eligible employees will receive severance based on how long they’ve been with the company and the role they held.</p> <p>For most employees, the total payout can go up to 39 weeks of base pay.</p> <h2>The Amount Depends on Your Role<br /></br></h2> <p>The compensation isn’t the same for everyone.</p> <ul> <li>Employees in Microsoft’s lower internal levels will receive one week’s salary for every six months they have worked.</li> <li>Those in mid-level roles will receive two weeks’ salary for every six months of service.</li> <li>Senior executives are covered under a different policy altogether.</li> </ul> <h2>There’s More Than Just a Salary Payout</h2> <p>The package doesn’t end with severance pay.</p> <ul> <li>Microsoft will continue to provide health insurance for six months after employees leave. Those who wish to continue their coverage can do so for another year through COBRA, although they’ll have to bear the cost themselves.</li> <li>Some employees will also continue receiving stock vesting for six months or even a year, depending on how long they’ve been with the company.</li> </ul> <p>Taken together, it’s one of the more generous exit packages currently being offered in the tech industry.</p> <h2>So, Why Is Microsoft Cutting Jobs?</h2> <p>The layoffs come at a time when Microsoft is spending billions on artificial intelligence.</p> <p> The company plans to invest close to $190 billion in 2026, with much of that money going towards AI infrastructure and new data centres.</p> <p>AI may be bringing in business, but building the systems behind it isn’t cheap. As spending rises, Microsoft appears to be looking for savings in other parts of the company.</p> <p>According to Microsoft’s Chief People Officer Amy Coleman, many of the latest cuts are in the sales division and the Xbox gaming business.</p> <p>Reports have also suggested that Xbox alone is expected to reduce its workforce by around 20%.</p> <h2>Not the First Round This Year</h2> <p>This isn’t the first time Microsoft has trimmed its workforce in 2026.</p> <p>Earlier this year, the company rolled out a voluntary retirement programme for nearly 9,000 employees in the US.</p> <p>The latest layoffs appear to be another step in the same restructuring effort.</p> <h2>Microsoft’s Package Stands Out</h2> <p>Layoffs have become common across the tech sector over the past few years, but not every company offers the same level of financial support.</p> <p>Reports say Salesforce offers between nine and 30 weeks of base pay, depending on the employee.</p> <p>Oracle provides four weeks of salary along with an additional week for every completed year of service, up to a maximum of 26 weeks.</p> <p>Meta has offered 16 weeks of salary, along with two extra weeks for every completed year worked.</p> <p>Against that backdrop, Microsoft’s package appears to be one of the more substantial ones.</p> <p>For the thousands of employees now preparing for their next chapter, that may not erase the disappointment of losing a job. But it does give them a little more time and financial breathing room while they figure out what comes next. </p> <div> <div aria-label=

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