Microsoft is offering voluntary buyouts to about 60,000 employees, roughly a quarter of its 223,000-person workforce, under a new Voluntary Exit Offer announced in a memo to staff on Monday, October 26. The program is open to employees on participating teams in the U.S., Canada, the U.K. and India, and lands as Microsoft reworks its workforce for AI while spending heavily on data centers and AI infrastructure.
Eligibility runs up to level 70 on Microsoft's internal scale, which includes general managers and some employees with vice president titles, but not corporate vice presidents. There is no age or tenure requirement, and performance is not a factor. Employees have until the first week of December to decide, with details sent by email.
The package matches Microsoft's standard severance: base pay tied to tenure and level, continued stock vesting, healthcare coverage for a fixed period, and career transition services. It does not include the extended healthcare that was a major draw of the company's spring retirement program.
Key facts
- 01Microsoft's Voluntary Exit Offer is open to about 60,000 employees, roughly a quarter of its 223,000 staff.
- 02Eligible staff are at level 70 and below on participating teams in the U.S., Canada, the U.K. and India.
- 03Employees have until the first week of December to decide; the package matches Microsoft's standard severance.
- 04About 30% of roughly 8,750 eligible employees took Microsoft's spring retirement offer, which carried a $900M charge.
- 05Microsoft reports quarterly earnings on Wednesday, where it could disclose projected costs for the new offer.
Business leaders decide whether their groups take part. Teams reported as eligible include Copilot, CoreAI, Windows + Devices, Xbox, finance and HR. The sales organization is not participating, and data center, security, marketing and quantum teams are excluded, along with some engineering groups and corporate functions.
Amy Coleman, Microsoft's chief people officer, wrote in the memo that the offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now, with support. She described it as another way for business leaders to adapt their workforce to changing needs.
“There is no one-size-fits-all approach for every team or every employee.”— Amy Coleman, Chief People Officer, Microsoft
This is Microsoft's second voluntary program this year. In the spring, the company offered retirement packages to U.S. employees at senior director level and below who met age and service thresholds. About 30% of the roughly 8,750 eligible employees accepted, and Microsoft booked a $900 million charge for the program in its April earnings report.
Microsoft has not projected how many people will take the new offer, but expects a much smaller share than the spring program drew. A spokesperson said the offer is not a replacement for layoffs, which remain an option depending on business conditions, and is not a sign the company needs fewer employees.
The offer follows a year of cuts. Microsoft eliminated 4,800 jobs in July, including 3,200 at Xbox, and 268 more Xbox roles in September, after cutting more than 15,000 jobs in 2025. Headcount stood at 223,000 as of June 30, down from 228,000 a year earlier.
Microsoft reports quarterly earnings on Wednesday, and those results could include projected costs for the Voluntary Exit Offer.
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