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

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

By Tom Warren
Publication Date: 2026-05-06 17:22:00

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…