Microsoft has once again started laying off employees, but the company is offering one of the best severance packages available in the tech industry. A recent report states that some employees who lost their jobs in America can get up to 39 weeks of basic salary, which is equivalent to about nine months’ salary, depending on their role and length of service in the company.
According to Business Insider, about 4800 employees have been affected by layoffs in the company some time ago. Microsoft This is approximately 2.1 percent of the total employees. According to the report, the severance package for American employees includes at least 60 days of basic salary, during which the employees remain on the payroll. After this, eligible employees can receive additional severance based on their seniority and years of service, bringing the total payment to 39 weeks of basic salary for most employees.
Who will get Microsoft’s severance package?
The amount received by each employee depends on their internal level. Employees at level 64 and below will get one week’s basic pay for every six months they have worked at Microsoft. Employees in level 65 to 67 will get two weeks’ basic pay for every six months of work. There is a separate compensation plan for higher level executives.
This help is not limited to salary only. Microsoft is also offering stock vesting facility to eligible employees for 6 or 12 months depending on their tenure. Additionally, affected employees will receive 6 months of paid health insurance, with the option to continue healthcare coverage for another year at their own expense through COBRA. The package is largely similar to the voluntary retirement offer Microsoft offered earlier this year, although the health coverage provided by the company in recent layoffs is shorter.
Why are layoffs happening?
Microsoft is investing rapidly in Artificial Intelligence, due to which layoffs are being done on a large scale. It is being said that the company will spend about $ 190 billion in capital expenditure this year, a large part of which will be used to expand AI infrastructure, which includes data centers and cloud computing capacity.
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