Microsoft Offers Voluntary Buyouts to About 60,000 Employees

Image: Ars Technica · Source

Microsoft announced a new Voluntary Exit Offer (VEO) for eligible employees in the US, Canada, India, and the UK, potentially affecting a quarter of its global workforce amid ongoing cost management and AI investment.

Microsoft has introduced a new Voluntary Exit Offer (VEO) that invites eligible employees to voluntarily leave the company with financial support and career planning resources. This program targets roughly 60,000 employees, approximately 25 percent of Microsoft’s global headcount, and includes workers in the United States, Canada, India, and the United Kingdom. Eligibility is limited to employees at level 70 or below, covering principal to partner/distinguished level roles as understood by external salary data.

The company describes the VEO as an option for employees already considering career moves outside Microsoft, offering a smoother transition. The offer serves as a workforce management tool, tailoring participation to each business unit's priorities, customer commitments, and staffing needs.

This initiative follows Microsoft’s earlier workforce adjustments in 2026, including a voluntary retirement package for 8,750 US employees in April and layoffs of about 3,200 Xbox division employees in July. About 30 percent of employees accepted the retirement offer previously, which reduced the scale of compulsory layoffs. Microsoft’s Chief People Officer, Amy Coleman, noted that the company is exploring regular use of voluntary exit programs, building on lessons learned from earlier efforts.

Microsoft's strategy appears similar to practices at other large tech firms like Alphabet, which offered voluntary exit packages multiple times in recent years. As the company continues investing heavily in AI infrastructure and data centers, managing costs through flexible workforce approaches becomes essential.

Eligible employees will receive detailed information about the voluntary offer via email, with the company planning to release its latest earnings report later in the week. Microsoft emphasizes that this approach aims to provide flexibility and choice while enabling teams to focus on critical work and develop new skills. The company also signals an ongoing commitment to listen, learn, and improve its workforce strategies over time.