Microsoft Offers Voluntary Early Retirement Package to Long-Serving US Employees

Microsoft posted the terms of a voluntary retirement package on its internal HR website on May 6, 2026, sources at the company told The Verge. The details appeared a day earlier than the originally scheduled announcement to employees on May 7, 2026. The offer targets long-serving US employees whose combined years of service plus age totals 70 or more.

Roughly 8,750 Microsoft US employees, or approximately 7 percent of the company's US workforce, are eligible for the buyout. Those who accept will receive 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, after which employees must pay a monthly premium for the remaining four years.

Cash payments differ by seniority level. Level 64 employees will receive one week of base pay for every six months of regular service, up to a maximum of 39 weeks.

Microsoft is also providing six months of vesting for unvested stock options under the package. Employees with 24 or more years of continuous service will receive 12 months of vesting instead. Employees will have 30 days to decide whether to accept the voluntary retirement package.

Microsoft revealed in April 2026 that it planned to offer long-serving US employees the ability to voluntarily retire. The company will take a $900 million charge in its current quarter for the voluntary retirement program. The Verge reported that the sum is roughly equal to one day of Microsoft revenue, according to GeekWire.

This marks the first time in its 50-year history that Microsoft has offered a voluntary retirement program. Tom Warren, a senior correspondent at The Verge who has covered Microsoft for over 20 years, reported the details in an article published on May 6, 2026 at 5:22 PM UTC. The Verge reported that sources at Microsoft informed the outlet the company posted the terms earlier than expected.