Roughly 8,750 Microsoft employees have a month to decide whether they'll stick with the company or take the money and run.

The Redmond-based tech giant is offering a voluntary retirement program for the first time in its 51-year history as it manages its head count amid record artificial intelligence-related spending.

The buyouts were announced to employees last month, but the finer details of the offer were posted Thursday, according to messages on an internal HR site viewed by The Seattle Times.

Eligible employees — those whose age plus their years at Microsoft equal at least 70 — will receive a lump sum of cash, as well as continuing healthcare coverage and vesting of stock awards. The scope of the packages differs among employees.

The cash severance payment scale is based on an employee's time at the company and their level. For example, employees at level 64 — a senior position — and below will receive one week of base pay for every six months they spent at Microsoft, with a minimum of eight weeks and a maximum of 39 weeks. Employees between levels 65 and 67 — director roles — will receive two weeks of their base pay for every six months worked.

Employees who opt for retirement also won't be forfeiting unvested stock awards, which is equity in the company that many tech employees receive as part of their compensation. Stock awards vest to employees in scheduled cycles. Those who retire will receive continued stock awards for six months after the termination date in July. Employees who have worked at the company for more than 24 years will receive their stock awards for a year after they leave Microsoft.

All workers who take the buyout will receive one year of subsidized healthcare from Microsoft, continuing their existing coverage. Over the next four years, they'd pay a monthly premium. Coverage may end sooner for those who qualify for Medicare.

Employees have until June 8 to make the decision. If they do leave, their last day at Microsoft will be July 1, the beginning of the company's 2027 fiscal year.

The company's message to employees did not say whether those who took the buyout would be prohibited from finding another job at a different company after their termination date. In 2022, Microsoft said it was removing noncompete clauses from its employment contracts in the U.S. and would not enforce existing clauses for most employees, outside of senior leadership.

The voluntary retirement program will cost the company roughly $900 million, Microsoft Chief Financial Officer Amy Hood said during an earnings call with analysts last month. That charge will affect Microsoft’s profitability for the current quarter, which ends June 30. The charge is a tiny fraction of Microsoft’s quarterly profit, which was $31.8 billion for the first three months of the year.

Hood told analysts she expects Microsoft's total workforce to shrink in the next year. That will likely be caused by the company's voluntary retirement program and an overall effort by Microsoft to manage its head count.

Microsoft's head count decreased year-over-year during its most recent financial quarter, which ran from January through March, driven largely by mass layoffs last summer.

Microsoft has about 125,000 U.S. employees, about 7% of whom are eligible for the buyouts.

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