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Microsoft offers voluntary buyouts to a reported 60,000 employees

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Microsoft offers voluntary buyouts to a reported 60,000 employees

On Monday, Microsoft said it will offer voluntary buyouts to eligible employees in select parts of the company. CNBC reports that the offer will go to roughly 60,000 employees, or about a quarter of Microsoft's global workforce. Microsoft itself is not quoted giving a number. The company describes the offer as an opportunity for employees who may have already been considering career moves outside Microsoft.

Microsoft did not give a direct reason for the package. Ars Technica notes that it comes as the company has spent the last several years managing costs amid investment in AI infrastructure and data-center buildout.

The voluntary exit offer (VEO) is open to qualifying employees in the United States, India, Canada and the United Kingdom. Employees at level 70 or below are eligible. Microsoft's employee rankings are internal, but according to the salary and career database Levels.fyi, levels 65 to 67 correspond to principal positions, and levels 68 to 70 are at the partner/distinguished level. Chief People Officer Amy Coleman said the eligible organizations were selected "based on each business’s priorities, customer commitments and workforce needs."

This is the second voluntary workforce reduction Microsoft has run in 2026. In April, it offered its first voluntary retirement package to 8,750 US employees. As reported by CNBC, about 30 percent of eligible employees accepted that offer, which lessened the impact of the planned layoffs, according to Coleman. In July, the Xbox division laid off 3,200 employees, about 20 percent of its gaming division; that was a layoff, not a voluntary program. The April offer went to long-tenured employees who might be nearing the end of their careers. The VEO expands the effort to a much larger potential pool.

Key facts

  • Microsoft said on Monday it will offer voluntary buyouts to eligible employees in select parts of the company; CNBC reports the offer goes to roughly 60,000 people, about a quarter of its global workforce.
  • The voluntary exit offer covers qualifying employees in the US, India, Canada and the UK, at level 70 or below.
  • It is Microsoft's second voluntary reduction in 2026, after an April retirement package offered to 8,750 US employees, of whom about 30 percent accepted, per CNBC.
  • Microsoft gave no direct reason; Ars Technica places it against years of cost management amid AI infrastructure and data-center spending.
  • Chief People Officer Amy Coleman said eligible organizations were chosen based on business priorities, customer commitments and workforce needs.

Why it matters

A buyout offer reaching about a quarter of the workforce, if CNBC's figure is right, is a much larger step than April's retirement package for 8,750 US employees. The earlier offer targeted long-tenured staff near the end of their careers; the VEO widens the pool considerably. Microsoft gave no direct reason, but the article sets it against several years of cost management alongside AI infrastructure and data-center investment.

Who it affects

Eligible employees in select parts of Microsoft in the United States, India, Canada and the United Kingdom, at level 70 or below. Per Levels.fyi, that range reaches up to the partner/distinguished level. Employees in organizations not selected, and in other countries, are outside the offer as described.

How to use it

This is a company offer to its own staff, not something outsiders can act on. For eligible employees, Microsoft frames it as a chance for people who may already have been considering a move outside the company. The source gives no buyout terms: no payout amount, severance size, or acceptance deadline.

How solid is it

Microsoft's announcement that it will offer voluntary buyouts is confirmed by the company. The 60,000 figure and the 30 percent April acceptance rate come from CNBC, as relayed by Ars Technica; the 60,000 is approximate. The level mapping to principal and partner/distinguished positions comes from Levels.fyi, since Microsoft's rankings are internal.

Risks and caveats

The source does not say how many employees are expected to accept the VEO or whether layoffs will follow it. Which business units are included is not listed. The 30 percent acceptance rate applies to the April retirement offer, not the new VEO, and the 3,200 Xbox layoffs in July were a layoff, not part of the buyout. The link to AI infrastructure costs is the article's context, not a motive Microsoft stated.

“based on each business’s priorities, customer commitments and workforce needs”

— Amy Coleman, Chief People Officer, Microsoft, on how eligible organizations were selected