Microsoft Offers Voluntary Buyout Packages to Approximately 60,000 Employees

IT Home reported on October 27 that Microsoft confirmed to tech media outlet TechCrunch on Monday local time that it is offering voluntary separation buyout packages to approximately 60,000 employees. This move is Microsoft's latest initiative to cut costs and restructure its workforce to adapt to the artificial intelligence era.

Microsoft Chief People Officer Amy Coleman sent a notice to employees regarding the buyout package, which IT Home noted was also published simultaneously on Microsoft's official website.

The notice indicates that employees at the vice president level and below across select teams in the United States, Canada, India, and the United Kingdom are eligible to apply. According to Bloomberg, departments included in this buyout program encompass Xbox, Windows, Copilot, and finance. Certain roles in data centers, sales, and marketing are not included in this round.

The notice sent to employees reads: "The voluntary departure program is an important part of how we are evolving our approach to change: it provides greater flexibility and, where viable, gives employees more choices in planning their next career steps. For eligible employees who have already been considering opportunities outside the company, this program offers a new option to transition with company support."

Microsoft stated that eligible employees would receive an email on Monday containing a link with details of the voluntary departure program. The terms of this buyout are similar to Microsoft's standard severance package.

The notice mentioned: "The voluntary departure program is a new endeavor for us, and we will learn from it. In the meantime, we will continue to help employees focus on core work, learn new skills, and, when appropriate, assist them in finding new roles within Microsoft. There is no one-size-fits-all approach for all teams and employees. Through methods like this, we continue to create opportunities for internal talent to grow and make an impact while meeting distinct business needs."

By leveraging voluntary buyout packages, Microsoft can downsize its workforce while avoiding the severe impact associated with large-scale layoffs. This is not the first time Microsoft has introduced a buyout program. Earlier this year, Microsoft offered a buyout package to retirement-eligible employees, with more than 30% of roughly 8,750 eligible employees choosing to accept.

As of the end of June, Microsoft had a total headcount of 223,000 employees.