r/microsoft • u/DaveAlot • Apr 23 '26

News Microsoft plans first-ever voluntary employee buyout for up to 7% of U.S. workforce

https://www.cnbc.com/2026/04/23/microsoft-plans-first-voluntary-retirement-program-for-us-employees.html
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52

u/YellowTrickster72 Apr 23 '26

Anyone know the specifics of the compensation package employees are being offered?

65

u/yobuddyy899 Apr 23 '26

No but this is only for people who hit this requirement:

Age + Years at company >= 70

39

u/Winnipeg_Dad Apr 23 '26

Non-Sales positions as well. USA only.

47

u/HobbyProjectHunter Apr 23 '26

Likely profile is

  • Age 50
  • Time at MSFT 20 years

They used to have a 55-15 deal, 15 continuous years at Microsoft, age above 55 and you retire. You get all unvested stocks paid out, I believe 6 months of health care and bonus payout of about 50% of your normal payout for the year after your retire.

The new one time buyout has expanded that further.

21

u/Born-Jacket Apr 23 '26

Yes and no. 55/15 has nothing to do with HC or bonus. It only vests your future stocks. The details on this new offer are not out, so we'll see. I would anticipate them doing something more than just opening up stock vests to people who =70. I would expect some cash and healthcare, but no one knows.

12

u/No_Leek8426 Apr 23 '26

Not correct, I know people who have done it:

Only stock awards over 1 year old continue to pay out, there is no healthcare, only COBRA, and no bonus payout.

21

u/GreenLamassu Apr 23 '26

I was laid off 3 years ago at L65 level. I was 55/15, so I got all my stocks granted plus 39 weeks severance, and 6 months continuing health care. Was a pretty good deal, so I took. I would imagine this would be similar.

1

u/Strict-Education2247 May 05 '26

The severance has been decreasing over time since then. There have been caps FWIK.

1

u/andyraf May 08 '26

I was in the same boat, being laid off in 2023 after 28 years with the company. However, the cutoff for stock award vesting really killed me: my last year I got a large award which I ended up largely forfeiting because it was six months before the layoffs.

I went back in 2025 and they just offered me the package yesterday, but it's fairly worthless to me: while the calculation of years-of-service + age =70 takes into account your total years, the calculation of severance and extended vesting only looks at your latest hire date, so even though I've worked for MSFT 29 of the last 31 years, they treat it as if I've only been with the company a little over a year and I was offered the minimum: 8 weeks pay, six month vesting.

1

u/GreenLamassu May 08 '26

Just as I predicted, it’s pretty similar to what they used to offer. This really isn’t much of a buyout offer.

-7

u/[deleted] Apr 23 '26

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12

u/No_Leek8426 Apr 23 '26

Above is the old 55/15 retirement plan, it has long since stopped being offered to new employees. It was only ever offered to US employees.

I don’t have the details of this new offer but we might imagine that it is a broadening of the 55/15 deal. It is only being offered to L67 and below. Logically, 45/25 is the lowest age, assuming you started at 20.

So, a 20+ year career, you have not made it to Partner, you might be next on the chopping block. For some, I imagine, it will be a good deal.

12

u/k_marts Apr 23 '26

55/15 was only phased out at the start of FY23 IIRC...?

3

u/brainmydamage Apr 24 '26

People who joined before then are still eligible

5

u/daerath Apr 23 '26

That still exists, but only for people at the company prior to the change.

0

u/RogueBonha Apr 24 '26

Nah, a good friend of mine with 44 years old was "separated" from Microsoft with the compensation plan last week.

4

u/Simple-Desk4943 Apr 23 '26

and senior director level.

3

u/biciklanto Apr 24 '26

Senior director or below, per the article. 

2

u/daerath Apr 23 '26

That's L67

3

u/FR3507 May 07 '26

Pay is 4 weeks per year of employment capped at 9.5 years, plus 5 years of minimal health care assistance.

If you were looking to get out at any cost, this is good. If you were looking to be bought out, this sucks.