Microsoft layoffs: Here's what impacted employees will get in severance

In a significant organizational shift, Microsoft has revealed plans to trim its workforce by 2.1%, affecting over 4,800 employees worldwide. Among those impacted, 3,200 individuals are from the Xbox division, with the remainder drawn from various other sectors within the company. This decision aligns with broader cost-cutting strategies, particularly those influenced by advancements in artificial intelligence (AI). Affected employees have already been notified about their layoffs, and Microsoft is committed to providing them with severance pay along with additional resources to facilitate a smooth transition. According to a report from Business Insider, U.S.-based employees will receive severance packages of up to 39 weeks' base salary. Every individual laid off is guaranteed at least 60 days of base pay, during which they will continue to be listed on Microsoft's payroll and maintain their regular benefits. For employees at levels 64 and below, the severance calculation will provide one week of base salary for every six months of service. Those at levels 65 to 67 can expect two weeks of base salary for the same duration. Meanwhile, executives at level 68 and above will be offered a distinct severance arrangement, although specific details have yet to be disclosed. In addition to the severance pay, employees at level 67 and below will retain access to company stock that is scheduled to vest for a duration of six or twelve months, depending on their tenure. They will also receive six months of health insurance coverage and have the option to extend their insurance through COBRA for an additional twelve months. This latest round of layoffs is part of a broader restructuring initiative at Microsoft, following the company's previous decision to let go of 9,000 employees last year due to similar AI-driven changes. As the tech giant continues to adapt to the evolving landscape, these layoffs mark a continuation of their shift toward a more streamlined operation.