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⚠️ Active Layoffs — Updated July 2026
Microsoft Layoffs 2026: Severance, RSU Vesting & What to Do
Microsoft cut over 14,000 employees in 2026 as part of its ongoing AI restructuring. The standout feature is that RSU vesting continues during the severance period — making the separation date the most important thing to negotiate.
✓ Based on reported Microsoft severance terms, WARN Act filings, and employment attorney guidance — Updated July 2026
Jobs Cut (2026)
14,000+
Ongoing rounds
Min Severance
2 months
+ tenure weeks
RSU Vesting
Continues
During severance
WARN Notice
60 days
Typical for mass layoffs
Health Coverage
6 months
Extended via severance
OWBPA
If 40+
21–45 days to review
⚠️ WARN Act — Microsoft Typically Complies, But Verify Yours
Microsoft typically provides 60-day WARN Act notice periods for large-scale layoffs. If you received immediate termination or less than 60 days notice without equivalent pay, this may warrant legal review. WARN Act violations entitle you to up to 60 days of back pay and benefits.
🛡️ Workers 40+ — Do Not Let Anyone Rush Your Signature
Federal OWBPA law gives workers 40 and older at least 21 days to review a severance agreement and 45 days if multiple employees 40+ were affected. You have 7 days to revoke even after signing.
Calculate Your Financial Runway After a Microsoft Layoff
Enter your Microsoft severance terms, state, and expenses. See how continued RSU vesting during severance changes your actual runway.
Open Microsoft Layoff Calculator →
Microsoft 2026 Severance Package
| Component | Microsoft 2026 Terms |
|---|
| Base severance | 2 months minimum |
| Tenure-based addition | ~1 week per year of service |
| RSU vesting | Continues during severance |
| WARN period | 60 days, full pay + benefits |
| Health coverage | 6 months continuation |
| Career transition support | 6 months basic (negotiable to 12) |
The RSU vesting continuation is the most important thing
Unlike most tech companies, Microsoft continues RSU vesting during the severance period. Negotiating your separation date to fall after a major vest is often worth more than arguing about additional cash.
Your Microsoft Layoff Timeline
1
Immediately: Find your next RSU vest dateThis is the single most important number.
2
Day 1: File for unemployment in WashingtonFile at esd.wa.gov. Max weekly benefit $999.
3
Before signing: Negotiate your separation datePush the date past your next major RSU vest if possible.
4
Within 60 days: Health insurance decisionMicrosoft provides 6 months coverage through the package.
Other Company Layoff Guides
Severance terms based on reported employee outcomes and employment attorney guidance as of July 2026. Individual packages vary. This is for informational purposes only and is not legal or financial advice.