“I'll probably take it.” Is Microsoft’s voluntary buyout not a bad thing after all?
A layoff in disguise.
Microsoft logo at Hannover Messe 2024 booth. Krisztian Bocsi/Bloomberg/Getty.
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- Microsoft offered voluntary buyouts to 60,000 employees.
- Buyout terms vary by level, location, and service, and can include pay, health insurance, and stock vesting.
- Employees have until December to decide and would leave the company at the end of the year.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
Based on your level, Microsoft offers base pay, health insurance, and continued stock vesting.
Microsoft has introduced a voluntary buyout for 60,000 of its employees, an agreement that would guarantee payment and benefits for those who choose to leave the company, rather than waiting for possible termination.
The offer comes as the company is trying to cut costs and shift its investments into AI.
The buyout was offered to employees from the Xbox, Windows, and Copilot divisions, including teams such as finance and human resources.
It’s been reported that each worker would receive a personalized deal based on their level, where they are based, and how long they’ve spent at the company.
The offer’s terms are based on the company's US standard severance offers, according to Business Insider.
What does Microsoft offer?
Microsoft introduced internal seniority levels, with entry levels starting at 59 and senior levels at 70.
At level 70, the company offered buyouts to select teams in the US, Canada, India, and the UK.
Employees at level 64 and below would receive one week of base pay for every 6 months of service.
Employees at higher levels, 65 to 67, would be offered 2 weeks of base pay per six months of service.
The buyout would also come with benefits such as health insurance and continued stock vesting. Employees at level 67 and below may receive 6 or 12 months of stock-vesting severance, depending on their years of service.
Employees who received the offer would have until December to make up their mind. If they agree to the buyout, they will have to leave the company at the end of the year.
According to a Microsoft spokesperson, the company isn’t planning another buyout.
When it comes to standard severance, employees at level 67 and below receive a maximum of 39 weeks of base pay, while employees at level 68 receive 12 months of salary.
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To take the deal or not to take the deal?
Microsoft laid off 4,800 employees in July as it focused on investing in AI infrastructure.
Considering this, some Reddit users who are also employed by the company revealed that they would take the deal.
“Still have to wait a few hours to see if it's being offered to me. I'll probably take it at this point. Working at Microsoft has turned into an absolutely miserable experience these past few years,” wrote one Redditor.
However, this turned into a discussion of its own, since many feared they would not be able to find a job anytime soon.
“What’s the endgame for all these companies? If the people don’t have jobs, they don’t have money. If they don’t have money, no one is buying/using your products,” wrote one user.
“Reduce the workforce when times are lean, then rehire fresh meat at a reduced salary when the economy improves,” noted another Redditor.
Microsoft is offering buyouts to around 60,000 employees. Read the memo.
by u/NakedMuffinTime in microsoft
Other users were curious whether an employee who received an offer could still remain with the company. However, many agreed that someone receiving the deal is probably on the verge of being fired.
“It's mostly to test the waters to see how many will stay, and then the management decides the layoff percentage,” explained one Redditor.
