What Microsoft announced
On October 26, 2026, Microsoft announced a time-limited Voluntary Exit Offer for eligible employees at level 70 and below in participating teams in the United States, Canada, India and the United Kingdom. The company said eligibility varies by organization and that eligible employees would receive their individual details. Read Microsoft’s announcement.
The Associated Press reported that approximately 60,000 employees were offered voluntary buyouts. That is the reported number eligible for the offer, not the number who have accepted or been laid off. The public announcement does not establish an individual employee’s package or acceptance deadline. Read the AP report.
1. Get the exact terms and deadlines in writing
Ask HR for your eligibility, decision deadline, proposed departure date, payment schedule and whether the company must approve your request. Confirm whether the offer replaces, supplements or differs from any future severance you might receive. Do not assume the same terms apply to every employee or that declining guarantees continued employment.
2. Work out the money you can actually use
List gross severance, unpaid salary, any accrued leave payment, bonus treatment and when each payment arrives. Ask payroll or a tax professional about withholding and your likely tax position; withholding is not necessarily the final tax owed. Subtract expected living costs, debt payments and other obligations. Compare a cautious job-search timeline with a faster one.
Example, not Microsoft’s terms: If a hypothetical worker expects $30,000 available after deductions and has $5,000 in essential monthly expenses, that is roughly six months of basic runway before unexpected costs. Adjust for healthcare, taxes, dependents and any income that is genuinely reliable.
3. Compare healthcare and other benefits
Ask when employer health coverage ends, how long any employer contribution lasts, and what replacement coverage will cost. In the United States, eligible workers may be able to consider COBRA or Marketplace coverage. HealthCare.gov explains options after losing job-based coverage; eligibility, enrollment deadlines and costs depend on the situation. Benefits and rules differ outside the U.S.
4. Review equity, retirement and bonuses
Check your individual stock-award documents for vesting, expiration and exercise rules; ask how the proposed departure date affects upcoming grants. Review retirement accounts, employer contributions, outstanding loans and bonus eligibility. Do not assume stock continues to vest or that an award can be exercised after leaving without verifying the governing terms.
5. Understand what you may be signing away
Read the agreement for a release of claims, confidentiality obligations, restrictions, repayment or clawback clauses, and deadlines. If terms are unclear, consult an employment lawyer familiar with your jurisdiction before signing. Unemployment eligibility and the treatment of severance vary by location and circumstances; verify the rules with the relevant government agency rather than assuming a voluntary exit qualifies or disqualifies you.
6. Compare the offer with your next move
Consider whether you already want to leave, the roles and locations you can pursue, time needed for a search, family constraints, and the financial consequences of staying or departing. Search actual employer careers pages, compare requirements and track promising opportunities. Avoid assuming that a buyout means future layoffs are certain—or that remaining means your role is guaranteed.
Questions to send HR
- What are my exact decision and departure deadlines, and is approval required?
- What are the payment amounts, schedule and applicable deductions?
- When do healthcare coverage and any employer contributions end?
- How are unvested equity, bonuses and accrued leave treated?
- What obligations and releases apply, and where can I review the plan documents?
Plan your next search
If you choose to look for another role, use our guide to check whether a company is hiring, and see how to follow up after applying. Lumen’s job checker can help assess observable listing signals; it cannot guarantee an employer’s intent.
This is general information, not individualized legal, tax, investment or benefits advice. Ask qualified professionals and relevant government agencies about your circumstances.
Sources
Microsoft’s October 26 announcement; Associated Press reporting; HealthCare.gov: losing job-based coverage; U.S. Department of Labor: severance pay.