Microsoft Severance Package: 2026 Guide
2+ months base pay plus additional weeks per year of service. Calculate your estimated Microsoft severance below.
Free Severance Pay Calculator
Estimate your severance package based on your salary, years of service, and industry
What Microsoft Typically Offers
Known Severance Benefits
- ✓Minimum 2 months severance pay
- ✓Additional weeks based on tenure
- ✓6 months continued health coverage
- ✓Career transition services
- ✓Stock vesting through severance period
- ✓60-day notice period (paid)
Microsoft Recent Layoff History
| Date | Employees | Details |
|---|---|---|
| January 2023 | 10,000 | Packages included severance, extended benefits, and career transition services |
| June 2024 | 1,900 | Gaming division (Activision Blizzard integration) |
| 2025 | 2,000 | Performance-based reductions across divisions |
Sources: The Verge, CNBC, Bloomberg, Blind
Microsoft Severance Tax (Washington)
Microsoft is headquartered in Washington. Here's how severance is taxed there:
Example: A Microsoft employee with 5 years of service earning $175,000 would receive approximately $50,481 gross ( $39,375 after tax in Washington).
How Microsoft Compares to Technology Average
Other Technology Companies
| Company | Formula | Rating |
|---|---|---|
| Meta (Facebook) | 16 weeks base + 2 weeks per year of service | Generous |
| Google (Alphabet) | 16 weeks base + 2 weeks per year of service + bonus | Generous |
| Amazon | Varies widely: corporate gets more than warehouse; typically 1-2 weeks per year | Standard |
| Apple | 4-12 weeks depending on role and tenure | Standard |
| Netflix | 4-9 months of pay (one of the most generous in tech) | Generous |
| Salesforce | Minimum 5 months pay plus career resources | Generous |
| X (Twitter) | 3 months base pay (post-acquisition standard) | Below Average |
| Uber | 10 weeks minimum + 1 week per year of service | Standard |
Negotiating Your Microsoft Severance
Strategies specific to Microsoft employees:
- ✓Microsoft is known for flexibility — counter-offers are common
- ✓Negotiate for continued vesting of your stock awards during severance period
- ✓Ask for extended access to LinkedIn Learning and career resources
- ✓Push for a longer transition period if working on critical projects
Think Your Severance Is Too Low?
Employment lawyers have helped workers negotiate 2-5x their original offers. Get a free consultation.
Microsoft Severance FAQ
How much severance does Microsoft pay?▼
Microsoft typically offers 2+ months base pay plus additional weeks per year of service. Their severance reputation is rated as “Generous” compared to technology industry peers. In recent layoffs (January 2023), packages included severance, extended benefits, and career transition services.
Can I negotiate my Microsoft severance?▼
Yes, most severance packages at Microsoft are negotiable. An employment lawyer experienced in technology can typically negotiate 2-5x the initial offer, especially if there are potential legal claims or WARN Act violations. Many offer free initial consultations.
How is Microsoft severance taxed?▼
Microsoft severance is taxed as supplemental wages at 22% federal flat rate plus 0.0% Washington state tax, for a total of approximately 22.0%. If you work remotely, your state of residence tax rate applies instead.
Related Technology Companies
📋 Free Severance Negotiation Checklist
The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.