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Early in January 2009, Microsoft chief Steve Ballmer bared that they were shedding 5,000 positions across its global operations. Initially, Microsoft Philippines have declared that it won’t be affected by the job cuts.

But earlier this month, the US-based company’s local unit has announced the implementation of the voluntary separation package (VSP) as Microsoft entered the second phase of its worldwide reduction programs. It was reported that top executives of Microsoft Philippines have opted to avail of the VSP rather than face the risk of getting laid off by a redundancy program.

Microsoft’s Philippine office has announced to its 95 full-time employees, the exit page on May 7 and has given them until May 15 to express their interest. The actual number of employees who accepted the generous package was not disclosed by the company who said that it is confidential information.

Employees who took advantage of the VSP will receive a three-month compensation for every year of service, free of tax. In addition to that, they will also be receiving a month’s worth salary upon notice of termination of service.

Availment of the VSP is purely voluntary. Just in case nobody avails of the package, the company was prepared to execute a redundancy program in case nobody came forward to avail of the separation package. Workers who did not avail of the VSP and were later deemed redundant and subsequently laid of, will receive a lesser severance package.

Microsoft Philippines also reported that it has signed up an “outplacement service” company who will assist would-be laid-off workers for their transition. Although Microsoft’s local operations is still growing, company officials revealed business conditions in the last quarter revealed that the landscape is still uncertain.