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This is what Microsoft offers laid-off employees as compensation

This is what Microsoft offers laid-off employees as compensation

Microsoft is offering laid-off U.S. employees up to 39 weeks of base pay for most U.S. employees, according to severance offers reviewed by Business Insider. Microsoft on Monday announced plans to lay off about 4,800 employees, or 2.1% of its global workforce. confirming Business Insider’s previous report. The US severance package includes a minimum of

Microsoft is offering laid-off U.S. employees up to 39 weeks of base pay for most U.S. employees, according to severance offers reviewed by Business Insider.

Microsoft on Monday announced plans to lay off about 4,800 employees, or 2.1% of its global workforce. confirming Business Insider’s previous report.

The US severance package includes a minimum of 60 days of base pay, during which employees will remain on the payroll, up to a maximum of 39 weeks of base pay for most employees, depending on seniority and seniority.

Employees at internal levels 64 and below will receive one week of base pay for every six months of service, and employees at levels 65 to 67 will receive two weeks of base pay for every six months of service. There is a separate package for executives level 68 and above.

The company also offers continuous regular vesting for six or 12 months for levels 67 and below, depending on years of service, and six months of paid health insurance coverage plus an additional 12 months of optional COBRA coverage.

Those terms are similar to what the company offered earlier this year in its Voluntary Retirement Program acquisitions, according to a document seen by Business Insider, except that the layoffs include shorter durations of health insurance coverage.

The layoffs come as Microsoft cuts costs and plans significant expenses, including $190 billion in capital expenditures this year, primarily related to developing its artificial intelligence infrastructure.

The cuts mainly affect sales and Xbox gaming organizationsMicrosoft Chief People Officer Amy Coleman wrote in an email to employees. Microsoft’s Xbox division also plans to cut 20% of its workforce by the end of June.

A maximum of 39 weeks of severance pay appears more generous than offers from some competing tech companies.

Salesforce, which recently made layoffs, has a standard severance package of a minimum of nine weeks and a maximum of 30 weeks of base salary. Oracle offered Laid-off U.S. employees receive four weeks of base pay, plus one week for each additional year of employment, up to 26 weeks, as severance.

Meanwhile, Meta recently offered laid-off U.S. employees a severance package that included 16 weeks (or four months) of base pay, plus two weeks for each year of continuous employment.

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