Obviously not everyone gets the golden parachute, but after a good period of service you can easily get over a year of salary (I got the equivalent of 1 year of salary after 12 years of employment when it happened to me).Only executives and directors get good parachutes. Most employees of any company that's undergoing layoffs get fuck all.
The thing is that people should stop seeing themselves as belonging to a company when they get a job, this is pure slave mentality.
Anyway, those people who work at MS probably have 6 figures salaries, they should be able to manage a transition period.