Details on Microsoft's first-ever Voluntary Retirement Program (VRP) are now out, revealing what long-serving employees would be getting. The remuneration that each employee would be getting would depend on their length of service and level.

A look at an internal document viewed byBusiness Insidershows what eligible employees would be getting. The VRP package includes health coverage, cash severance and a partial stock vesting bump for long-serving Microsoft employees. Below are some of the details of the buyout employees will receive.

It was also stated in the document that employees who avail of the VRP will have their last day on 1 July. The Microsoft employment termination date will be on 2 July.

Further, Microsoft employees who have served less than 24 years will be getting six months of unvested stocks once their employment ends. As for those who have served more than 24 years, the vesting period will expand to 12 months.

It was also noted in the document that there is no assurance that Microsoft will offer a similar program in the future. This is the first voluntary retirement program that the company has offered in its 51-year history.

During their earnings call last week, Microsoft said it will take a $900 million (£663 million) charge for the current quarter to cover its one-time voluntary retirement programme. This sum is roughly equal to a day of revenue as pointed out byGeekWire.

Not all employees may qualify for this rare offer. Those who don't are advised to stay on. The company also warned employees to be prepared for potential team changes, especially if a coworker is eligible for the VRP.

Another key point from the released document is that the VRP is limited to US employees, as it has a greater impact for those based in the United States. The package was also designed to address US-specific realities, especially healthcare.

Those at the senior director level or above are excluded from the buyout. Employees with sales incentive plans are also ineligible.

Microsoft's Voluntary Retirement Program comes a year after the company laid off more than 15,000 workers in 2025. It also comes months after several executives either retired or stepped down, a sign that the company is headed in a different direction. AI integration is seen to be one of them as Microsoft hopes to keep itself afloat.

Source: International Business Times UK