Microsoft Offers Voluntary Buyouts to Around 60,000 Employees

What happened

On October 26, Microsoft Chief People Officer Amy Coleman sent employees a memo announcing a program called the Voluntary Exit Offer. Microsoft said the offer gives employees considering a future outside the company a supported way to make that transition now, with participating organizations determining eligibility based on business priorities, customer commitments and workforce needs.

Bloomberg and Business Insider reported the offer covers around 60,000 employees, more than a quarter of Microsoft’s roughly 223,000 global workforce. Eligibility applies to employees at vice president level and below, at internal level 70 and below, in participating teams in the United States, Canada, the United Kingdom and India, including AI experiences, Copilot, Xbox, Windows + Devices, finance and human resources; some teams in data centers, sales, marketing and security are excluded. Microsoft confirmed the program but did not confirm the 60,000 figure to Reuters.

The buyout terms are reported to mirror Microsoft’s standard severance package, with amounts varying by level, location and tenure. Microsoft already made two workforce moves earlier this year: a voluntary retirement program in April for a smaller group of US employees, with about 2,600 participants, and layoffs of about 4,800 employees in July, including about 1,600 from Xbox. Microsoft is scheduled to report quarterly earnings on Wednesday, October 28.

Key facts

1. Program: The Voluntary Exit Offer, announced by Chief People Officer Amy Coleman on October 26.
2. Coverage: Reported at around 60,000 employees, more than a quarter of Microsoft’s roughly 223,000 global workforce; Microsoft did not confirm the figure to Reuters.
3. Eligibility: Employees at vice president level and below, at internal level 70 and below, in participating teams in the US, Canada, the UK and India.
4. Teams: AI experiences, Copilot, Xbox, Windows + Devices, finance and human resources; some data center, sales, marketing and security teams are excluded.
5. Terms: Reported to mirror the standard severance package, with amounts varying by level, location and tenure.
6. Earlier moves this year: About 2,600 participants in the April voluntary retirement program; about 4,800 laid off in July, including about 1,600 from Xbox.