Microsoft offers voluntary buyouts to 60,000 workers

Microsoft on Monday offered voluntary buyouts to about 60,000 employees, roughly a quarter of its workforce, as it tries to control headcount without another round of layoffs, The Seattle Times reported. The Voluntary Exit Offer covers employees at internal level 70 and below on participating teams in the US, Canada, India and the UK. That cutoff includes senior leaders, according to a memo from Chief People Officer Amy Coleman published by Business Insider.cnbc.com+1

"The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," Coleman wrote, as quoted by CNBC.theverge.com

Who qualifies and the terms

Not every group is taking part. A Microsoft spokesperson told Bloomberg that some employees working on data centers, sales and marketing are excluded. People familiar with the plan told The Verge that staff in Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources are eligible. According to the same report, the marketing, commercial business, quantum and security teams are not participating.theverge.com+1

The spokesperson told Business Insider that the terms will be similar to Microsoft's standard severance. In the US, the severance offered during layoffs earlier this year included at least 60 days of base pay and up to 39 weeks for most workers, depending on seniority and tenure. Employees have until early December to decide and would leave at the end of the year. The company said it has no plans for another buyout at this time.businessinsider.com

Building on the retirement program

In April, Microsoft announced its first-ever voluntary retirement program, CNBC reported. That offer was limited to about 9,000 US employees whose age plus years of service added up to 70 or more, The Verge noted. About one-third of those eligible accepted it, according to The Seattle Times.seattletimes.com+2

AI spending and job cuts

The buyouts come as Microsoft spends heavily on data centers to meet demand for artificial intelligence, including cloud services for OpenAI and Anthropic. That spending has strained the company's finances, CNBC reported. Bloomberg called the plan part of an effort to cut costs and retool its workforce for the AI era.bloomberg.com+1

Microsoft laid off about 15,000 employees in 2025, The Seattle Times reported. Earlier this year it cut another 4,800 jobs, mostly on the Xbox and commercial sales teams, and Xbox CEO Asha Sharma is reportedly planning more cuts, according to The Verge.theverge.com+1

"The Voluntary Exit Offer is new for us. We'll learn from it," Coleman wrote in the memo.businessinsider.com