‘Consider not taxing severance’: Investor urges FM amid Microsoft VEO, reiterates need of savings as layoffs continue
A social media post by Muthukrishnan Dhandapani, a Chennai-based mutual fund distributor, has gone viral in the wake of Microsoft announcing its first-ever Voluntary Exit Offer for around 60,000 employees.
Terming it a layoff, the veteran investor who has managed the portfolio of Rahul Gandhi for years noted that some 60,000 employees have been “offered some separation benefits and asked to leave.”
“Usually what happens in the industry is that if they don’t accept the voluntary exit offer, they are subsequently laid off. When you get laid off, separation benefits are not provided,” he said, adding that “Though called voluntary, in all likelihood these 60,000 people would have no option but to leave the company.”
Quick answers to key questions
•5 QUESTIONS
1
What is Microsoft's Voluntary Exit Offer (VEO)?⌵The VEO is a time-limited programme offering eligible employees financial support and career-planning resources if they choose to leave Microsoft. The company says it gives participating organisations flexibility to adapt their workforces.
2
Who is eligible for Microsoft's Voluntary Exit Offer?⌵The offer is for eligible employees at level 70 and below in participating teams in Canada, India, the United Kingdom and the United States. Eligible employees are notified by email with a link to their offer details.
3
Is Microsoft's VEO the same as a layoff?⌵Microsoft describes the VEO as voluntary, so employees can choose whether to accept it. Investor Muthukrishnan Dhandapani cautioned that employees may feel they have little choice, citing the possibility of layoffs after declined exit offers as an industry pattern.
4
Why did an investor urge the government not to tax severance benefits?⌵Dhandapani asked the Union Finance Minister to consider not taxing severance as companies continue to cut jobs. He cited Microsoft's exit offer and Oracle's layoffs as signs that job cuts may continue.
5
How much savings did the investor recommend employees keep during layoffs?⌵Dhandapani advised tech-sector employees to keep safe savings equal to three years of living expenses. He also cautioned against taking on loans, including for buying a house.
The VEO announced by Microsoft came months after the tech giant introduced an age-based buyout in April, resulting in the subsequent restructuring of approximately 4,800 jobs, primarily within its Xbox and gaming divisions by July.
According to open-source data, in 2026 so far, 135,246 employees have been laid off by 332 companies, including some of the top names in the tech industry. Thousands of Indians have also been affected by these layoffs.
As companies push through these aggressive job cuts, Dhandapani urged Union Finance Minister Nirmala Sitharaman to “consider not taxing severance benefits.”
Citing Microsoft and the recent layoffs by Oracle, Dhandapani warned that the trend is expected to continue.
Given the uncertainties ahead, Dhandapani also cautioned tech-sector employees against making big investments.
“I’ve been saying for the last couple of years to create safe money worth 3 years of living expenses and not to go for any loans, including buying a house,” he said.
Dhandapani also pointed out that IT layoffs could have a much bigger impact on the economy, including on real estate.
“The impact of IT professionals losing jobs would start showing on premium consumption, real estate prices and reduced demand across the economy,” he said.
While expressing confidence that new opportunities will emerge in the future, Dhandapani argued that things would become worse before they become better.
“Newer industries and opportunities would come in the future. But the transition period is going to be painful,” he said.
On Monday, Microsoft announced that it is rolling out a Voluntary Exit Offer for its eligible employees across teams in Canada, India, the United Kingdom, and the United States.
Amy Coleman, Executive Vice President and Chief People Officer, noted in a blog post that the VEO “gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.”
Bobins loves telling the human side of all stories, from the intersection of geopolitics, international relations, and conflicts around the world. In his nearly one-and-a-half-decade career as a journalist, Bobins has covered South Asia, the Middle East, and North America, from elections to mass protests and conflicts. <br> Bobins has also done extensive reporting on environmental issues, climate change, and sustainability, focusing on solutions and people working to make the planet a better place to live. <br> In 2018, Bobins was awarded by Times Internet for the impact of his story on Delhi tree cuttings. Bobins also loves telling the stories of Indian startups and the journey of their founders. <br> Total Years of Experience: 14 <br> Years of experience at LM: Bobins has been a part of Live Mint since February 2026 <br> Interests: When he is not tracking conflicts, Bobins loves to cook, travel across India, click photos, and watch documentaries on history. Past Experience: Before joining Live Mint, Bobins worked with The Indian Express, where he led the Global Breaking News coverage, Indiatimes, where he led the news team, covering everything trending, ANI, where the focus of his coverage was South Asia, and NBS News. <br> Current Role: Bobins is currently working as an Assistant Editor at Live Mint.
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