Microsoft severance package includes up to 39 weeks' pay

Microsoft is providing up to 39 weeks of base pay and continued stock vesting for six to 12 months to most US employees affected by recent layoffs, according to severance offers reviewed by Business Insider.

The company announced reductions impacting 2.1% of its global workforce. The US severance packages include a minimum of 60 days' base pay, with the maximum duration dependent on seniority and tenure. Laid-off employees will also receive six months of continued health insurance coverage, with an additional year of optional COBRA coverage.

The workforce reductions have predominantly impacted Microsoft's sales and Xbox divisions. Xbox plans further cuts of 20% of its staff by the end of the fiscal year as part of what its CEO called its "most significant restructuring in history." This included the elimination of roles held by long-serving employees, such as an Xbox vice president with 37 years at the company.

Other major technology companies have also implemented significant severance packages. Salesforce offers between nine and 30 weeks of base pay. Block provided 20 weeks of salary plus one week per year of tenure. Oracle offered four weeks of pay plus one week per year of service, capped at 26 weeks. Meta, following its own layoffs, offered US employees 16 weeks of base pay and two weeks per year of employment.