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IT Home reported on October 27 that Microsoft confirmed to tech outlet TechCrunch on Monday local time that it is offering voluntary buyouts to about 60,000 employees. The move is Microsoft’s latest effort to cut costs and reshape its workforce for the AI era.
Microsoft Chief People Officer Amy Coleman sent employees a notice about the buyout offer. IT Home noted that the notice was also published on Microsoft’s website.
According to the notice, employees at the vice president level and below on certain teams in the United States, Canada, India, and the United Kingdom are eligible to apply. Bloomberg reported that the departments covered by the buyout program include Xbox, Windows, Copilot, and finance. Some employees in roles such as data centers, sales, and marketing are excluded.
The notice to employees said: “Voluntary separation is an important part of how we approach change: it gives us greater flexibility and, where possible, gives employees more options as they plan the next stage of their careers. For eligible employees who have already been considering opportunities outside the company, this program offers a new option that lets them make the transition with the company’s support.”
Microsoft said eligible employees would receive an email on Monday with a link to details of the voluntary separation offer. The terms of the buyout are similar to Microsoft’s standard severance package.
The notice said: “Voluntary separation is a new approach for us. We will learn from it. At the same time, we will continue helping employees focus on core work, learn new skills, and, when the time is right, find new roles within Microsoft. There is no single approach that works for every team and employee. Through approaches like this, we will continue creating opportunities for employees to grow and contribute within the company while meeting different business needs.”
The voluntary buyout offer allows Microsoft to reduce its workforce while avoiding the strong impact of large-scale layoffs. This is not Microsoft’s first buyout program. Earlier this year, Microsoft offered buyouts to employees who had reached retirement age; more than 30% of the roughly 8,750 eligible employees accepted.
As of the end of June, Microsoft had 223,000 employees.