Microsoft Offers Voluntary Buyouts to 60,000 Employees as Part of Workforce Restructuring

Image: Microsoft offers buyouts to 60,000 employees · Source

Microsoft has launched a voluntary exit program enabling up to 60,000 employees in several countries to leave the company with support, aiming to adjust its workforce flexibly without further layoffs.

Microsoft has initiated a new voluntary exit offer (VEO) allowing as many as 60,000 employees across the United States, United Kingdom, Canada, and India to leave the company with financial support and career planning resources. Announced by Executive Vice President and Chief People Officer Amy Coleman, this program aims to provide a flexible workforce adjustment option amid ongoing organizational changes.

Unlike traditional layoffs, the VEO is a time-limited and voluntary program targeting eligible employees at level 70 and below within participating teams. The program partly builds on Microsoft’s earlier Voluntary Retirement Program, which was limited to around 9,000 long-serving US employees meeting specific age and service criteria. In contrast, the current offer covers a broader range of employees across many divisions.

According to sources familiar with implementation, employees throughout Microsoft’s business, including AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance, and human resources teams, are eligible. Some teams, such as marketing, commercial business, discovery and quantum, and security, are excluded. Select groups within cloud + AI, MicrosoftAI teams, as well as corporate, external, and legal affairs, participate partially.

This initiative follows the company’s recent layoffs of 4,800 employees earlier in the year, which mainly affected Xbox and commercial sales units. Notably, the VEO does not extend to the commercial sales teams affected by those layoffs. Xbox's CEO Asha Sharma reportedly plans additional reductions, though these are separate from the voluntary program.

Coleman emphasizes that the VEO is a new approach, allowing Microsoft to ‘‘learn from it’’ while continuing efforts to focus on critical work, skill-building, and facilitating opportunities within the company. She stresses that there is no single approach suitable for all teams or employees and that this program is part of broader strategies to meet varying business needs while supporting employee growth.

Eligible employees receive personalized emails detailing their options. Microsoft positions the voluntary exit offer as part of an evolving strategy to create greater flexibility and meaningful choices for employees contemplating a future outside the company. The company commits to ongoing communication, listening, and improving its workforce adaptation processes.

This development highlights Microsoft’s response to current economic and market pressures, seeking to balance operational efficiency with employee support without resorting immediately to involuntary layoffs.