Microsoft's 60,000 employees can apply for voluntary resignation, US media discloses details of compensation plan

Abstract:

According to Business Insider reports, Microsoft recently issued an invoice to approximately

60,000 employees

Provide voluntary severance package. Multiple plans reviewed by the media showed that the compensation received by employees varies based on rank, work location and length of service, and that compensation for U.S. employees is consistent with Microsoft's standard severance package in the United States.

A Microsoft spokesperson said that eligible employees need to decide whether to accept the plan before early December, and those who choose to leave will leave the company at the end of this year. Microsoft currently has no plans to introduce a voluntary severance program again.

Microsoft uses a rank system to classify employee qualifications, ranging from entry-level level 59 to level 70, which is equivalent to a vice president. This program is open to some teams in the United States, Canada, India and the United Kingdom

Level 70 and below

of qualified employees.

The plan viewed by Business Insider shows that for

employees level 64 and below

, you will receive 1 week of basic salary as compensation for every 6 months of service; for

level 65 to level 67 employees

, you will receive 2 weeks of basic salary for every 6 months of service.

Compensation also includes continuing to receive shares under normal arrangements, as well as continuation of medical insurance. According to Microsoft's standard severance plan, employees at level 67 and below can continue to receive stock vesting for 6 months or 12 months based on their seniority after resignation.

For employees with level 67 and below, the upper limit of basic salary compensation in Microsoft’s standard severance package is

39 weeks

; The standard severance compensation for level 68 employees includes 12 months’ salary. Business Insider did not disclose the specific compensation standards for grade 69 and grade 70 employees in this voluntary severance package.

Earlier this year, Microsoft launched a voluntary retirement plan for U.S. employees. About 8,750 people were eligible at the time, accounting for about 7% of its U.S. workforce. Business Insider previously reported that the plan's compensation is also consistent with Microsoft's standard severance package, including continued stock vesting for 6 or 12 months based on length of service.

Other technology companies have taken similar steps. Business Insider previously reported that Google offered voluntary severance packages to employees in some business units earlier this year.

Some human resources professionals previously told Business Insider that the voluntary severance program can reduce the impact of layoffs, but if it is open to employees of different working ages, companies may also face the risk of brain drain.