Layoffs at Microsoft: Protecting Your Rights During Restructuring

Microsoft’s Ongoing Restructuring

Since 2023, Microsoft has announced several rounds of layoffs, impacting tens of thousands of employees across gaming, cloud, and corporate divisions. While the company describes these as strategic realignments, the personal impact is significant for those affected.

If you’re facing a Microsoft layoff—or concerned you might be—knowing your legal rights can help you protect your interests and plan your next steps.

The WARN Act: Your Right to Advance Notice

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires large employers to provide advance notice of mass layoffs.

Federal WARN Act basics:

• Applies to employers with 100+ employees.

• Triggers if 100+ workers are laid off at a single site, or if layoffs affect 33%+ of the workforce.

• Requires 60 days’ written notice to employees, state, and local government.

• If violated, employees may recover up to 60 days’ back pay and benefits.

State WARN laws may offer more protection:

• California: Applies to layoffs of 50+ employees; 60 days’ notice required.

• New York: Requires 90 days’ notice for larger layoffs.

• Washington: Has its own requirements, important for Redmond-based staff.

Exceptions exist, but are limited:

• Unforeseeable business circumstances.

• Natural disasters.

• “Faltering company” (rare for Microsoft).

Not all layoffs trigger WARN. Temporary layoffs, transfers, or “furloughs” may be treated differently. Always check your state’s specific law.

Understanding Your Severance Package

Microsoft typically offers severance, but it’s not legally required. What you receive depends on company policy, your employment agreement, and negotiation.

Typical Microsoft severance includes:

• Base pay continuation (length varies by tenure).

• Health benefits extension.

• Outplacement services.

• Possible equity acceleration.

Before signing a severance agreement:

• Review what rights you’re waiving (discrimination, wrongful termination, wage claims).

• You usually have 21 days to consider (45 for group layoffs if you’re 40+), and 7 days to revoke after signing.

• Don’t feel pressured to sign immediately.

• Consider negotiating for:

  • More severance pay.

  • Extended benefits.

  • Better equity treatment.

  • Positive reference terms.

Severance agreements often include arbitration clauses—review these carefully.

Age Discrimination in Layoffs

The Age Discrimination in Employment Act (ADEA) protects workers age 40 and older. Tech layoffs sometimes disproportionately affect older employees.

Signs of age discrimination:

• Older workers selected more often than younger peers.

• Comments about “culture fit,” “energy,” or being “overqualified.”

• Sudden negative performance reviews after years of good work.

• Subjective criteria applied inconsistently.

ADEA requirements for severance:

• Must advise you to consult an attorney.

• 21 days to consider (45 for group layoffs).

• 7-day revocation period.

• Disclosure of ages/job titles of those selected and not selected.

If these aren’t met, your release may be invalid.

Other Discrimination Concerns

Layoffs must not target protected groups based on disability, race, gender, or recent leave.

• Disability: Selection based on disability or recent accommodation requests is prohibited.

• Leave: Selection after taking FMLA, CFRA, or ADA leave may be suspicious.

• Race/Gender: Patterns affecting protected groups can signal discrimination.

What to do:

• Request written selection criteria.

• Ask for demographic data (required for valid age discrimination release).

• Document any discriminatory comments or patterns.

• Consult an attorney before signing anything if you suspect discrimination.

Evaluating Your Layoff

Ask these questions:

• What criteria were used for selection?

• How was I evaluated against those criteria?

• Who else was selected or retained?

• Are there patterns by age, race, gender, or disability?

• Did I recently complain, take leave, or request accommodations?

• Were explanations vague or shifting?

Red flags:

• Sudden negative reviews.

• Selection soon after protected activity.

• Inconsistent application of criteria.

Negotiating Your Exit

You may have leverage if:

• You have potential legal claims.

• You possess valuable knowledge or client relationships.

• The selection process seems questionable.

Negotiation tips:

• Don’t sign immediately.

• Express appreciation but raise concerns.

• Be specific about what you want (financial and non-financial).

• Get all terms in writing.

• Consider having an attorney negotiate for you.

Unemployment Benefits

• File for unemployment as soon as you’re separated—don’t wait for severance to end.

• Severance may delay benefits in some states, but file anyway and let the agency decide.

• Benefits aren’t retroactive, so act promptly.

State variations:

• Washington: File with Employment Security Department.

• California: File with EDD, up to 26 weeks typically.

Protecting Your Equity

• Vested equity is yours—know your deadlines for exercising options.

• Unvested equity is usually forfeited, but some packages accelerate vesting.

• Negotiate for better equity treatment if possible.

• Consider tax implications and consult a financial advisor for large grants.

References and Future Employment

• Most companies confirm dates and title only.

• Severance may include reference terms—negotiate if needed.

• When explaining your layoff, focus on accomplishments and avoid disparaging Microsoft.

Key Deadlines and Requirements

Using Caira to Navigate Your Layoff

Caira can help you:

• Review severance agreements for compliance.

• Evaluate discrimination concerns.

• Understand WARN Act and state requirements.

• Prepare for negotiations.

Documents to upload:

• Severance agreement

• Performance reviews

• Layoff notification

• Employment agreement

Questions to ask Caira:

• “Does this severance agreement comply with ADEA?”

• “What are the WARN Act requirements in my state?”

• “How do I file for unemployment?”

• “What are signs of age discrimination?”

Empower Yourself

You have rights under federal and state law. Many employees succeed by documenting everything and following the proper steps. Deadlines matter—act promptly to protect your claims.

Caira can help. She’s easy to chat with.

Caira helps you feel more confident and less anxious about employment law issues—whether you’re facing layoffs, severance, discrimination, or just want to understand your rights. Backed by 50,000 legal documents for all 50 states, Caira can:

• Answer your questions instantly 24/7

• Review and explain emails, policies, or termination letters

• Draft statements or responses for HR or agencies

• Give feedback on your filled-in forms or the other party’s arguments

• Analyze your uploaded documents, screenshots, or pay stubs

• Help you track deadlines and next steps for your state

Try Caira for free—no credit card required.

This information is for educational purposes and is not legal, financial, or tax advice. Employment law is complex and fact-specific. Outcomes vary depending on the evidence submitted and its strength.