Microsoft is offering eligible U.S. employees up to 39 weeks of pay, extended healthcare coverage and continued stock vesting under the company's first-ever Voluntary Retirement Program, as the tech giant accelerates its massive artificial intelligence expansion.
Internal documents reviewed by Business Insider show the package includes cash severance, medical benefits and stock incentives for long-serving workers. The move comes after Microsoft cut more than 15,000 jobs in 2025 while ramping up AI investment across its cloud and software businesses.
Employees at lower levels will receive one week of base pay for every six months worked, while workers at levels 65 to 67 will receive two weeks of pay per six months of service. The total payout ranges from a minimum of eight weeks to a maximum of 39 weeks of salary.
The retirement package also includes:
- Up to five years of medical, dental and vision coverage
- Six to 12 months of continued stock vesting
- Additional retirement-related stock vesting for qualifying employees
Microsoft will fully cover healthcare costs during the first year. After that, employees can continue coverage by paying monthly premiums themselves.
Workers with fewer than 24 years at the company will receive six months of unvested stock after leaving. Employees with more than 24 years of service will receive 12 months of vesting.
The company said employees who accept the offer will officially leave on July 1, with employment ending July 2. Microsoft also warned there is "no assurance" a similar program will be offered again.
Not all employees qualify. Senior directors, higher-ranking executives and workers on sales incentive plans are excluded. The company also limited the program to U.S.-based employees, citing healthcare and retirement considerations specific to the United States.
Microsoft disclosed during last week's earnings call that it expects to take a $900 million charge tied to the retirement program. GeekWire noted that amount is roughly equal to one day of Microsoft revenue.
The retirement offer arrives as Microsoft continues pouring billions into AI infrastructure, data centers and its partnership with OpenAI. The company's growing focus on artificial intelligence has fueled major internal restructuring, leadership departures and broader changes across its workforce.
