Microsoft redundancies 2026
Your rights, a redundancy pay calculator and settlement agreement advice.
In short: Microsoft announced a time-limited Voluntary Exit Offer on 26 October 2026 that includes eligible UK teams, and the press reported it was open to about 60,000 people. It also announced the elimination of around 4,800 roles globally in July 2026.
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Is Microsoft making redundancies in 2026?
BM Magazine reported that UK staff in finance, HR and Xbox are among those offered voluntary redundancy, and that data centre, sales and marketing staff are not eligible.
Source: BM Magazine, 27 October 2026.
GeekWire reported that the Voluntary Exit Offer is open to about 60,000 people, roughly a quarter of the workforce, and that employees have until the first week of December to decide.
Source: GeekWire, 26 October 2026.
If you have received a letter about redundancy or an invitation to volunteer, ask for your personal figures and the scheme rules. A headline number does not tell you how much you will receive or when you would leave. Reporting a redundancy programme does not suggest unlawful conduct by Microsoft.
Which Microsoft roles are affected?
BM Magazine reported that finance, HR and Xbox teams are among those offered the scheme, while data centre, sales and marketing staff are not eligible, and Microsoft said participation varies by team.
- Employee: check your letter, any eligibility window, your personal estimate and internal vacancies.
- Agency or supplier worker: check the employer named on your contract. Working at a Microsoft site does not automatically make you eligible for Microsoft's scheme.
What is in a Microsoft redundancy package?
Your written Microsoft offer determines your package. We have not found a publicly verified enhancement formula that applies to every Microsoft employee. A quote from a previous programme, a colleague or an online forum may use different terms.
A package can include statutory redundancy pay, an enhancement, notice, unused holiday and other sums. Ask for these separately so you can see what you are already owed and what depends on accepting additional terms.
Does voluntary redundancy usually pay more?
Volunteering does not automatically increase your statutory pay. An employer may offer an enhancement to attract volunteers. Compare the written voluntary and compulsory terms, including the leaving date and pension effects, instead of assuming a standard number of months' salary.
What should I ask for in the Microsoft redundancy policy?
Request the current scheme rules, qualifying service date, pay definition, any enhancement formula, cap and application deadline. Check whether the enhancement includes statutory pay or is added to it, and whether a settlement agreement is a condition.
Acas explains how voluntary applications work. The terms of a particular Microsoft offer must come from your own documents.
How is statutory redundancy pay calculated?
You normally need 2 years' continuous employment. Count complete years backwards from your redundancy date, using your age during each year:
- Under 22: half a week's pay for each complete year.
- 22 to 40: one week's pay for each complete year.
- 41 or over: one and a half weeks' pay for each complete year.
For redundancies from 6 April 2026, weekly pay is capped at £751, service at 20 years, and statutory pay at £22,530. These limits do not set a maximum for an enhanced offer. Source: GOV.UK statutory redundancy pay.
Microsoft redundancy pay calculator
Use your age at redundancy, complete years of continuous service and gross weekly pay before tax. For fixed pay, annual salary divided by 52 gives a weekly starting point. GOV.UK uses average weekly earnings over the 12 weeks before notice; ask payroll to confirm the figure if your pay varies.
This is a statutory baseline for comparing a Microsoft redundancy package. The statutory figure excludes any enhancement, pension settlement and notice pay. If your service is under two years, a zero statutory result does not mean no wages, notice or holiday are owed.
What do 20, 30 or more years at Microsoft mean for my pay?
Only the latest 20 complete years count for statutory pay. Longer service may matter under an enhanced scheme, but you need its written rules. These examples use 2026/27 rates and are not Microsoft offers.
| Age | Full service | Gross weekly pay | Statutory estimate |
|---|---|---|---|
| 45 | 8 years | £600 | £6,000 |
| 55 | 20 years | £900 | £20,277 |
| 55 | 30 years | £900 | £20,277 |
The two age-55 examples match because both calculations use the latest 20 years and the same capped weekly pay. Your dates and age bands can produce a different result.
What should I check in my Microsoft offer?
Ask for a breakdown, rather than comparing one headline total with a colleague's offer.
| Part of the offer | What to check |
|---|---|
| Redundancy pay | The statutory amount and any Microsoft enhancement, shown separately. Check which salary and service dates the scheme uses. |
| Notice and holiday | Your notice period, whether you work it or receive pay in lieu, and payment for untaken holiday. |
| Bonus, pension and benefits | Whether leaving affects a bonus, pension contributions, share awards, benefits or any early-retirement terms. |
| Tax and payment date | What is taxed, what deductions apply and when each payment will arrive. Notice and holiday pay are normally taxable. |
| Agreement terms | The reference, confidentiality, restrictions, claims you give up and contribution towards independent legal advice. |
Read more about notice and pay in lieu or tax on redundancy payments.
How much Microsoft redundancy pay will I keep after tax?
The first £30,000 of qualifying redundancy and termination compensation is usually free of Income Tax. This is one combined threshold. Wages, bonus, holiday and notice pay are normally taxed as earnings, even when they appear in the same settlement agreement.
Your take-home amount depends on the payment breakdown and your other income. Ask payroll for a tax calculation, then compare it with the agreement's tax wording. GOV.UK explains which termination payments are taxable.
What happens to my pension or early-retirement options?
Leaving Microsoft does not mean you must draw your pension. Pension rights already built up do not simply disappear on redundancy. Ask the administrator of your particular scheme for the leaving-service statement and any early-retirement figures, including reductions and lost future contributions.
Do not assume a redundancy package includes an unreduced early pension. If you are considering putting part of the payment into a pension, check the scheme rules, available tax allowances and when you could access it. MoneyHelper explains pension options after redundancy; regulated financial advice may help with your decision.
What happens during a redundancy process at Microsoft?
You receive a proposal or invitation to volunteer
Check who is eligible, the deadline, the proposed leaving date and when an application becomes binding. Volunteering does not guarantee acceptance.
You discuss the proposal and alternatives
Consultation should cover the reasons for redundancy and ways to avoid or reduce it. Ask about vacancies, your selection criteria if relevant, and anything you believe is wrong. Keep the letters and meeting notes.
You receive a decision and written terms
Check the payment breakdown, notice and leaving date. Ask how to appeal if you think the decision is unfair. If there is a settlement agreement, get independent advice before signing it.
Our consultation guide explains your rights. For an invitation to volunteer, see what to check before accepting voluntary redundancy.
Can Microsoft refuse a voluntary application, and can I change my mind?
An employer can decide which voluntary applications it accepts. Ask when your application or acceptance becomes binding and whether the scheme allows withdrawal. Do not assume that declining to volunteer guarantees your job is safe, or that applying is the same as resigning.
Where collective consultation applies, representatives discuss the wider proposal. It does not replace checking your own figures and circumstances. See GOV.UK consultation guidance.
What if Microsoft offers me another job?
Compare the duties, pay, hours, location and your circumstances. You normally have a four-week trial in an alternative role. Unreasonably refusing suitable alternative work can affect statutory redundancy pay. Check the rules and trial dates before deciding.
What redundancy notice should Microsoft give me?
You should receive the longer of your contractual notice and the statutory minimum: one week after a month's service, one week for each complete year from two to twelve years, and twelve weeks after twelve years. Source: GOV.UK notice periods.
Check whether you work notice, take garden leave or receive payment in lieu of notice (PILON). Confirm the leaving date and whether pension contributions and other benefits continue or are included in the payment. Notice pay is separate from statutory redundancy pay.
Can I challenge a redundancy decision?
Ask for the appeal procedure and deadline. Explain any errors in your selection scores, consultation, service dates or consideration of alternative roles, with supporting documents. Selection must not unlawfully discriminate. See our guides to discrimination, maternity-related protections and redundancy while off sick.
Microsoft settlement agreement: what should I check before signing?
A settlement agreement is a separate legal step, whether it comes with redundancy or another kind of exit. Independent advice is required for a valid waiver of the specified employment claims. Your adviser should explain the payments, reference, confidentiality and restrictions you are accepting.
Qualifying statutory redundancy pay is not conditional on signing. An additional payment can be linked to agreed terms. The Acas guidance on settlement offers recommends allowing at least 10 days to consider the agreement and obtain advice. Tell us your actual deadline.
We can review the agreement and discuss any changes you want to request. Check Microsoft's legal-fee contribution in the offer; we will confirm any cost to you before you instruct us. Negotiation support is additional work, agreed separately, and does not guarantee a larger payment.
Have your agreement and deadline ready.
Keep your payment breakdown, contract and any scheme rules alongside it. Use the button below to request a review.
Get my agreement reviewed
Microsoft redundancy and settlement agreement questions
Is Microsoft making redundancies?
Microsoft announced a time-limited Voluntary Exit Offer on 26 October 2026 that includes eligible UK teams, and the press reported it was open to about 60,000 people. It also announced the elimination of around 4,800 roles globally in July 2026. Use your own letter or invitation to check whether your role is included.
What is a normal Microsoft redundancy package?
There is no verified Microsoft formula we can apply to every employee. Your package may combine statutory redundancy, an enhancement, notice and holiday pay. Ask for each amount separately, the written eligibility rules and any conditions on an additional payment. Older offers and online anecdotes are not a reliable personal quote.
Can I calculate my Microsoft redundancy pay?
This page's free calculator estimates statutory redundancy pay using your age, complete service and gross weekly pay. It does not calculate any Microsoft enhancement. Compare the result with your written offer and check notice, holiday, pension and tax separately. No contact details are needed to see the statutory estimate.
What do I get after 20 or 30 years at Microsoft?
Only the latest 20 complete years count for statutory redundancy pay. Your age during each year also matters, and weekly pay is capped at £751 for 2026/27. Ask whether an enhanced Microsoft scheme recognises longer service. It may use different rules from the statutory calculation.
Is voluntary redundancy better paid than compulsory redundancy?
Volunteering does not itself create a higher statutory entitlement. An employer can offer extra money to encourage volunteers, but that depends on the scheme. Compare the written voluntary and compulsory terms, including the leaving date, pension effects and any settlement agreement conditions, before deciding.
What if I have less than two years' service at Microsoft?
You normally need two years' continuous employment for statutory redundancy pay. You may still be owed notice, accrued holiday and wages. Any enhanced scheme may have different eligibility rules, so ask for the written terms rather than assuming the calculator's zero statutory result means you receive nothing.
Is Microsoft redundancy pay tax-free?
The first £30,000 of qualifying redundancy and termination compensation is usually free of Income Tax. It is a combined threshold, not a separate allowance for each part of the offer. Salary, holiday, bonus and notice pay are normally taxable earnings. Ask for the tax breakdown before comparing take-home figures.
Do I have to sign a settlement agreement to receive redundancy pay?
Qualifying statutory redundancy pay does not depend on signing a settlement agreement. An employer can make an additional payment conditional on agreed terms. Separate what you are already owed from what is offered for settling claims, and get independent advice before signing.
Can I negotiate my Microsoft settlement agreement?
You can ask for changes before accepting the terms, but an increase is not guaranteed. The discussion might concern the payment, reference, leaving date, restrictions or legal-fee contribution. We can discuss negotiation support and agree any additional cost before that work starts.
Who pays for advice on a Microsoft settlement agreement?
Check the legal-fee contribution in your own agreement. Employers can contribute towards independent advice but are not legally required to fund it. We will confirm the contribution and any cost to you before you instruct us. Negotiation support is agreed separately.
Sources and page checks
Last edited 29 October 2026.
- BM Magazine, 27 October 2026.
- GeekWire, 26 October 2026.
- GOV.UK: statutory redundancy pay
- GOV.UK: consultation
- GOV.UK: suitable alternative employment
- GOV.UK: notice periods
- Acas: settlement offers, independent advice and fees
- Acas: volunteering for redundancy
- GOV.UK: tax on termination payments
- MoneyHelper: pension options after redundancy
Important
This page is general information, not legal, tax or benefits advice. Your documents and circumstances determine your position. Settlement Advice is not connected with Microsoft or any trade union; the name is used only to identify the employer. Law and statutory rates checked 29 October 2026.