Microsoft Offers Voluntary Buyouts to About 60,000 Employees to Cut Costs

Microsoft is offering voluntary buyouts to about 60,000 employees as the technology giant seeks to cut costs and manage its workforce. The programme, called the Voluntary Exit Offer, covers eligible employees in the United States, Canada, India and the United Kingdom. Microsoft had 223,000 full-time employees worldwide as of June 30. Therefore, the offer could reach more than a quarter of its global workforce, although not all eligible employees are expected to accept it.

Chief People Officer Amy Coleman announced the program in an internal memo sent Monday. She said the offer gives employees who are considering leaving the company an opportunity to make that transition with financial support.

Microsoft Voluntary Exit Offer: Who Qualifies and What the Package Includes

Microsoft’s Voluntary Exit Offer covers eligible employees in selected teams, including AI Experiences, Copilot, Finance, Human Resources, Xbox, and Windows + Devices. However, employees in Marketing, Commercial Business, and Security are excluded. Business leaders decide which groups can participate, so the program does not cover the entire company. Eligible employees must have an internal job level of 70 or below. This includes general managers and some vice presidents, but excludes corporate vice presidents. In addition, the offer has no age or length-of-service requirements, and an employee’s performance does not affect eligibility. The program follows Microsoft’s standard severance guidelines, although individual terms may vary by job level and tenure.

The voluntary buyout package includes severance pay based on an employee’s job level and tenure, continued stock vesting, temporary health coverage, and career transition support. Reports on earlier exit packages in 2026 cited payments ranging from at least 60 days of base pay to as much as 39 weeks, depending on seniority. Some reports also mentioned continued stock vesting for six to 12 months. However, Microsoft has not confirmed whether these specific terms apply to the latest offer. Eligible employees have until the first week of December to decide whether to accept, while those who take the offer are expected to leave the company on December 31.

Why Microsoft Is Trimming Its Workforce While Spending Heavily on AI

Microsoft’s new voluntary buyout offer follows a series of job cuts as the company tries to control costs while investing heavily in artificial intelligence. The company eliminated 4,800 jobs in July 2026 and cut hundreds more in September. In addition, Microsoft removed more than 15,000 positions in 2025. Like other technology companies, it faces pressure from investors to limit operating expenses while spending tens of billions of dollars on AI infrastructure and data centers.

The program also builds on Microsoft’s voluntary retirement offer launched this spring, the first of its kind in the company’s history. About 30% of the 8,750 eligible U.S. employees accepted the earlier offer, prompting Microsoft to record a $900 million charge in its April earnings report. Chief People Officer Amy Coleman has also said Microsoft is considering whether to make voluntary exits a regular practice. As Microsoft expands its AI investments, the new buyout offer highlights the challenge of balancing rising technology costs, workforce decisions and investor expectations while preparing for its next phase of growth.

Web resources on Microsoft Offers Buyouts to 60,000 Employees

1. Reuters : Microsoft offers buyouts to around 60,000 employees to contain costs.
2. Euro News : Microsoft offers around 60,000 employees voluntary buyouts.
3. The Straits Times : Microsoft to offer buyouts to 60,000 workers in latest cost cut.