Microsoft has rolled out a voluntary-exit programme that could affect around 60,000 employees worldwide — nearly 27 per cent of its global workforce. This comes after 4,800 layoffs earlier in the year, making the new offer one of the largest workforce reduction initiatives in the company’s history.
The buyout option is open to employees at level 70 and below, covering vice presidents and all roles beneath them. Teams in India, the US, the UK, and Canada are included, with departments such as AI experiences, Copilot, finance, HR, Xbox, and Windows and Devices participating. Marketing, sales, and some engineering groups are not part of the programme. Eligible employees will be notified by email and must decide by December, with departures scheduled for 31 December 2026.
The severance package varies by level and region. Reports suggest US employees at levels 67 and below could receive up to 39 weeks of base pay, while level 68 employees may get a full year’s salary. Packages outside the US may differ, but the principle remains: financial support for those choosing to leave.
Microsoft is investing heavily in AI infrastructure, with capital expenditure projected at $175 billion for 2026. By reducing headcount through voluntary exits, the company aims to manage costs while giving employees more choice in shaping their careers.
Voluntary exits can soften the blow compared to layoffs, but they also create uncertainty.
