AI Impact: After Google, Microsoft offers voluntary retirement scheme in the US

Compared to any technological strides, the advancement in generative Artificial Intelligence has taken the corporate industry by storm.

Gemini maker Google is not only offering its gen AI tools to clients, but also using them within the organisation to automate mundane work. As per the latest reports, more than 25 per cent of the code generation for most of its apps, such as Search, Maps and others, is automated.

Other major companies are also incorporating them, and this has resulted in job losses worldwide.

Earlier this year, Google announced voluntary exit packages for the first time to senior and mid-level employees.

Now, Microsoft, which had recently cut 15,000 jobs, is readying another round of layoffs.

To soften the blow to its employees, it is offering a voluntary retirement policy with benefits including partial healthcare coverage, cash severance, and a partial stock vesting bump.

Microsoft has reportedly been offering up to five years of health insurance covering medical, dental, vision, and well-being. But, only the first year will be fully covered by the company, but for the remaining four years, it will offer a partial premium amount, and the rest has to be taken care of by the sacked employees.

Mid-level senior work at level 64 is eligible to get one week of base pay for every six months worked at Microsoft, and this is capped at 39 weeks max.

More senior members in level 65-67 get double, that's two weeks of base pay for every six months worked in the company, and this too is capped at 39 weeks.

This package is for employees, particularly those in senior director-level roles, who have long work experience at Microsoft and their age adds up to 70 or more. Around seven per cent of its workforce is expected to be affected by the voluntary exit policy, reported CNBC, citing Microsoft's internal memo to employees.

Microsoft is said to be offering six months of unvested stock for anyone who volunteers to accept the exit package. This means employees will be able to earn from stock benefits even after leaving the company.

Employees with 24 or more years of continuous service are said to get double, a full year of additional vesting.

As gen AI tech advancements make giant strides, more corporate companies are expected to come up with similar voluntary exit programmes to further cut down on expenses and streamline the work processes.

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