Details of Microsoft $MSFT's first-ever voluntary retirement buyout have emerged through an internal document, revealing that qualifying U.S. workers could walk away with anywhere from eight to 39 weeks of base pay in a single cash payout, with the exact amount tied to their level and how long they have been at the company.
The program, called the Voluntary Retirement Program and reported by Business Insider, is open to U.S. employees at level 67 or below whose age and years of service add up to 70 or more as of June 30, 2026. Workers on sales and services incentive plans are excluded. Employees must also be in good standing through their separation date of July 2, 2026.
How the cash amount is calculated depends on where an employee sits in Microsoft's job-level hierarchy. For workers at level 64 or below, the rate is one week of pay per half-year worked; for those in the 65-to-67 band, that rate doubles to two weeks per half-year. Regardless of level, no participant can receive less than eight weeks or more than 39 weeks total.
Healthcare is another piece of the package, with retirees potentially keeping their medical, dental, and vision benefits — covering dependents as well — for as long as five years after leaving. Microsoft picks up the tab during the first year, after which participants take on a monthly premium through year five, though the coverage window can close earlier if someone becomes eligible for Medicare or secures other coverage.
All participants share the same last day of employment: July 1, 2026.
Sitting behind the program is a financial balancing act: Microsoft is committing $190 billion to capital expenditures this fiscal year, with artificial intelligence infrastructure accounting for a large share of that outlay, and executives have signaled that total employee headcount is expected to decline over the next several quarters as the company manages those costs.