Microsoft Widens Buyout Offer to 60,000 Employees as Workforce Adjustments Continue

Microsoft expands voluntary exit offer

Microsoft has opened a new buyout program to roughly 60,000 employees across U.S., Canadian, U.K. and Indian teams, covering about a quarter of its 223,000-person workforce. The Voluntary Exit Offer was detailed in a Monday memo and gives eligible staff the option to leave with support, including benefits similar to the company’s standard severance.

Package and eligibility

Eligible employees will receive details by email and have until the first week of December to decide. The company said the offer matches Microsoft’s usual severance structure, with base payments tied to tenure and level, continued equity vesting, a fixed period of health coverage, and career transition assistance. It does not include the extended medical benefits that made the spring retirement program especially attractive.

Unlike the earlier initiative, the new offer has no age or tenure requirement and performance is not a factor. It extends up to level 70 on Microsoft’s internal scale, meaning it can include general managers and some vice presidents, but not corporate vice presidents. Business leaders will determine whether their groups participate, and Microsoft’s sales organization along with some engineering and corporate functions are not taking part.

Why it matters

The program comes six months after Microsoft’s first-ever voluntary retirement offer, which about 30% of roughly 8,750 eligible U.S. employees accepted. The company disclosed a $900 million charge for that program in April and said the new buyout is expected to draw a much smaller share of its broader eligible population.

Microsoft’s headcount had fallen to 223,000 by June 30 from 228,000 a year earlier, before additional reductions. The company cut 4,800 roles in July, including about 600 in Washington state, and made further cuts across the business in September. It has trimmed more than 15,000 jobs in 2025.

Executives framed the move as part of ongoing workforce planning rather than a standalone response to overstaffing. Microsoft faces pressure to control costs while investing heavily in data centers and AI infrastructure. The company also said it continues to redeploy staff into new roles, having moved more than 4,000 employees into different positions over the past year.

Earnings watch

Microsoft is scheduled to report quarterly results Wednesday, and the new buyout cost could be reflected in updated financial guidance. The latest offer reinforces a broader tech industry pattern of using voluntary exits, layoffs, performance reviews and role changes to reshape teams during a period of rapid AI-driven spending.