Microsoft has announced up to 39 weeks' base pay for the laid-off US employees, according to Business Insider, as it reviewed the severance offers by the company.
On Monday, July 6, 2026, Microsoft announced plans to lay off nearly 4,800 employees, which is around 2.1% of its global workforce.
US Severance Package
Laid-off employees are entitled to receive at least 60 days' base pay as per the US severance package policy. During this period, employees remain on the payroll of the respective companies. The maximum duration of this severance package is up to 39 weeks for most employees, determined according to seniority and tenure served in the business.
Employees at internal levels 64 and below are entitled to receive one week of base pay every six months of their employment. Employees at levels 65 to 67 will get two weeks of base pay, and for levels 68 and above, there is a different severance package.
Why Is Microsoft Laying Off Its Workforce?
Microsoft said these layoffs are mainly for cost-cutting, as the company is planning to spend $190 billion in capex this year, mainly for building AI infrastructure.
These layoffs include the recent job cuts at Xbox as intimated by Microsoft Chief People Officer Amy Coleman in an email to the employees.
“Microsoft's Xbox division also plans to cut 20% of its workforce by the end of June.” – she wrote in the email.
Also Read: Xbox Plans Significant Layoffs as New CEO Plans Overhaul
Other Allowances And Benefits By Microsoft
Microsoft announced a regular stock vesting opportunity for the next six to 12 months that will be available for employees at level 67 and below. Paid health insurance coverage will also be available for the employees as per their service tenure, along with an additional 12 months of optional COBRA coverage.
Business Insider reported that these terms are similar to the ones offered for the Voluntary Retirement Program by the company earlier this year, except for shorter health insurance coverage.
Comparing Severance Packages
Microsoft seems to offer the better severance package for its laid-off employees, compared to 9 weeks to 30 weeks of base pay offered by Salesforce. Oracle offered its US employees at least four weeks of base salary, up to 26 weeks, plus one week per additional year of employment.
Meta, however, offered one of the lowest severance packages, up to a maximum of 16 weeks' base pay plus two weeks for every year of continuous employment.
Also Read: Microsoft Doubles AI Bet With 6,000 Dedicated Staff, $2.5 Billion Investment In New Arm
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