Here’s what Microsoft is offering long-serving employees to voluntarily retire

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FollowSee All ExclusiveHere’s what Microsoft is offering long-serving employees to voluntarily retireSome Microsoft employees will be offered a package of healthcare, cash, and stock vesting if they voluntarily retire. Some Microsoft employees will be offered a package of healthcare, cash, and stock vesting if they voluntarily retire. by Tom Warren Tom WarrenSenior CorrespondentPosts from this author will be added to your daily email digest and your homepage feed.

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FollowSee All by Tom WarrenMay 6, 2026, 5:22 PM UTC Image: Cath Virginia / The Verge Tom Warren Tom WarrenPosts from this author will be added to your daily email digest and your homepage feed. FollowSee All by Tom Warren is a senior correspondent and author of Notepad, who has been covering all things Microsoft, PC, and tech for over 20 years. Microsoft revealed last month that it’s planning to offer long-serving employees in the US the ability to voluntarily retire.

While the terms of the buyout were supposed to be announced to employees tomorrow, sources at Microsoft tell me the company has posted them on its internal HR website a little earlier than expected. US employees whose combined years of service added to their age totals 70 or more will be eligible for voluntary retirement, and the package will include five years of access to Microsoft’s healthcare coverage, a lump sum cash severance payment, and six months of vesting for unvested stock options. The five years of medical, dental, vision, and well-being coverage will be fully subsidized by Microsoft for the first year, but employees who take the voluntary retirement option will have to pay a monthly premium for the remaining four years.

The lump sum cash payment will vary depending on employee levels. Those at Microsoft’s mid-senior level (level 64) will be offered a week of base pay for every six months of regular service, up to a maximum of 39 weeks. Those at more senior positions at Microsoft (levels 65–67) will be offered two weeks for every six months of regular service, up to the same maximum of 39 weeks.

Microsoft is also including six months of vesting for unvested stock options with this buyout offer, which will extend to 12 months if an employee has had 24 or more years of continuous service. Around 7 percent of Microsoft’s US employees will be eligible for this buyout offer, which is roughly 8,750 employees. It’s the first time Microsoft has offered a voluntary retirement program in its 50-year history, and employees will have 30 days to decide whether they want to take the package or not.

This advance offers important signals about the future of the sector, and the tech world is watching closely.