Microsoft has unveiled its inaugural voluntary retirement program for qualifying employees. The program offers various benefits, including cash payments, healthcare coverage, and stock award vesting.

Eligible employees can receive lump-sum cash payments equivalent to eight to 39 weeks of base pay, depending on their level and tenure within the company.

Participants will also have access to Microsoft’s medical, dental, and vision coverage for up to five years, with full subsidy in the first year and standard COBRA rates thereafter.

Unvested stock awards will continue to vest for six to twelve months post-employment, depending on an employee’s tenure at Microsoft.

Certain long-serving employees meeting specific age and service criteria may qualify for continued vesting of all eligible unvested awards as per the original schedule.

Employees have a 30-day window to decide whether to accept the offer, with no apparent restrictions on future employment opportunities.

The program, announced on April 23, is a rarity in the tech industry where companies typically resort to layoffs and performance reviews for headcount management.

Approximately 7% of Microsoft’s U.S. workforce, around 8,750 employees, are eligible for the program, which targets employees at Level 67 and below with a combined age and service total of 70 or more.

During a recent earnings call, Microsoft’s CFO, Amy Hood, disclosed a projected $900 million charge related to the program in the current quarter, with expectations of a continued decline in headcount throughout fiscal 2027.