Microsoft layoffs: What employees will receive in severance

Microsoft layoffs: What employees will receive in severance

Microsoft has announced a major layoff, with plans to cut around 4,800 jobs or about 2.1% of its global workforce.

The company is restructuring its sales and Xbox divisions while investing heavily in artificial intelligence (AI) infrastructure.

The tech giant's severance package for laid-off employees includes up to 39 weeks of base pay, continued stock vesting, and health insurance coverage.

Minimum of 60 days base pay

The severance package starts with a minimum of 60 days of base pay, during which affected employees will remain on Microsoft's payroll.

For most employees, the total payout can go up to a maximum of 39 weeks of base salary, depending on their role and years of service.

Employees at internal levels 64 and below will get one week of base pay for every six months they have worked.

Stock vesting and health insurance coverage extended

Along with salary payments, employees at levels 67 and below will continue receiving regular stock vesting for either six or 12 months, depending on their tenure with the company.

Microsoft is also extending healthcare benefits as part of the package.

Laid-off employees will get six months of paid health insurance coverage, followed by an option to continue coverage for another year through COBRA at their own expense.