Microsoft is offering long-serving US employees a package including healthcare, cash and stock vesting as part of a voluntary retirement program. The offer is open to employees with combined years of service and age totalling 70 or more.

The benefits include five years of subsidized health coverage, a cash severance payment based on years of service, and extended vesting for unvested stock options. Around 8,750 employees will be eligible, marking the first time Microsoft has offered such a program in its 50-year history.

Healthcare coverage is fully subsidized by Microsoft for the first year but requires monthly premiums from the second year onwards. Cash payments vary between one and two weeks of base pay per six months of service, up to a maximum of 39 weeks. Senior employees receive more generous offers.

This move comes with an estimated $900 million charge for Microsoft and is expected to be decided upon within 30 days by eligible employees.