Microsoft's RP execs avail of severance package

MANILA, Philippines - Top executives of Microsoft Philippines have opted to avail of the company’s voluntary separation package (VSP) rather than risk getting laid off by a redundancy program. Earlier this month, the US-based company’s local unit announced the implementation of the VSP as Microsoft entered the second phase of its worldwide worker reduction program. In January 2009, Microsoft chief Steve Ballmer bared that the company was shedding 5,000 positions across its global operations. The Philippine office had initially declared that it won’t be affected by the job cuts. Under the VSP, each employee will receive a three-month compensation for every year of service, free of tax. In addition, they will also be paid a month’s worth salary upon notice of termination of service. The firm’s local office announced the exit package to its 95 full-time employees on May 7 and gave them until May 15 to express their interest. However, the number of workers who actually took advantage of the generous package is unknown as Microsoft Philippines said this is confidential information. The company also could not say how many employees will avail the package since the offer is purely voluntary. But among those who have hinted of their departure in their Facebook accounts include platform strategy manager Abet dela Cruz and technology specialist Jojo Ayson. Based on their status updates in the social networking site, both Dela Cruz and Ayson had their final interviews on Tuesday, May 26, with the VSP committee headed by Microsoft Philippines managing director Rafael “Pepeng" Rollan. Dela Cruz joined Microsoft in 2006 after serving as chief technology officer of gaming firm Level-Up for three years. Ayson, meanwhile, spent a total of eight years at the company. Previous to that, he was an SAP consultant from 1997 to 2000. Employees at the software firm were put into a tight fix as the company was prepared to execute a redundancy program in case nobody came forward to avail of the separation package. If a worker is deemed redundant and subsequently laid off, he or she will have a lesser severance package. The local subsidiary also said it has signed up an “outplacement service" company to assist would-be laid-off workers for their transition. In an earlier interview with reporters, Rollan said although Microsoft's local operations is still growing, business conditions in the last quarter revealed that the landscape is still uncertain. - GMANews.TV