Reed NewsReed News

Microsoft offers first voluntary severance to US staff

Economy & businessEconomy
Key Points
  • Microsoft announces first voluntary severance program
  • Up to 7% of US employees eligible, potentially affecting 8,750 workers
  • Eligibility based on seniority and combined age and years of service

The program, reported by the Financial Times, marks the first time Microsoft has implemented a voluntary severance scheme. It is open to US employees at the level of 'senior director' or lower whose combined years of service and age total at least 70. Last year, Microsoft had 125,000 employees in the US, meaning the potential layoffs could affect up to 8,750 people, or 7% of its US workforce.

Amy Coleman, Microsoft's Chief Human Resources Officer, said in a statement: "Our hope is that this program gives those eligible the opportunity to take the next step on their own terms, with generous support from the company."

Our hope is that this program gives those eligible the opportunity to take the next step on their own terms, with generous support from the company.

Amy Coleman, Chief Human Resources Officer at Microsoft

It remains unclear how many employees will accept the offer, the total cost of the program, or whether involuntary layoffs will follow if not enough volunteers step forward. The specific departments or roles most affected have not been disclosed, nor has the timeline for the program.

Sourced
Dagens IndustriFinancial Times - World
2 publications
View transparency reportReport inaccuracy
Microsoft offers first voluntary severance to US staff | Reed News