Microsoft announced plans on Monday to cut approximately 4,800 employees, confirming earlier reports from Business Insider. The reduction represents about 2.1% of the company's global workforce.
Affected US employees are being offered severance packages that include a minimum of 60 days of base pay, during which they remain on the payroll. For most workers, the total can reach up to 39 weeks of base pay, depending on seniority and tenure.
The formula varies by job level: employees at internal level 64 and below receive one week of base pay per six months of service, while those at levels 65 to 67 get two weeks per six months. A separate package applies to executives at level 68 and higher. The company is also continuing regular stock vesting for six to 12 months for employees at level 67 and below.
This severance structure mirrors the terms offered in Microsoft's recent voluntary retirement buyout program. The layoffs come as the tech giant continues to adjust its workforce amid shifting priorities in the industry.
The move is likely to affect thousands of families and ripple through the broader tech employment landscape, as other major firms have also announced job cuts this year.
The sources for this brief are limited to two Business Insider articles and one from The Motley Fool. The Motley Fool articles focused on SpaceX's inclusion in the Nasdaq-100 and were not relevant to this story, so they were excluded from the brief.