Microsoft is offering voluntary buyouts to roughly 60,000 employees in the US, Canada, India, and the UK today. The company announced on Monday that eligible staff in select parts of the organization will receive offers to leave the tech giant. This initiative represents approximately a quarter of Microsoft’s global workforce.
The voluntary exit offer (VEO) is available to employees at level 70 or below. While Microsoft does not publicly disclose its internal ranking system, data from the salary and career database Levels.fyi indicates that levels 65 through 67 correspond to principal positions. Levels 68 to 70 are classified as partner or distinguished levels. The company stated that eligible organizations were chosen based on business priorities, customer commitments, and workforce needs.
Strategic Workforce Reduction
Microsoft did not provide a direct reason for the current buyout package. The offer comes as the company manages costs while investing heavily in artificial intelligence infrastructure and data center construction. Chief People Officer Amy Coleman described the program as an opportunity for employees who may have already been considering career moves outside the company.
This marks the second time Microsoft has implemented a voluntary workforce reduction in 2026. In April, the company offered a voluntary retirement package to 8,750 employees in the United States. According to Coleman, about 30 percent of eligible staff accepted that offer, which lessened the impact of planned layoffs. The April program primarily targeted long-tenured employees nearing the end of their careers. The current VEO expands the potential pool of participants significantly.
Coleman previously told GeekWire in July that Microsoft was exploring voluntary exits as a regular part of workforce management. She noted that the current program builds on lessons learned from the earlier Voluntary Retirement Program.
Industry Context and Previous Cuts
The move follows a pattern seen at other major technology firms. Alphabet, the parent company of Google, offered voluntary exit packages in June and October 2025, and again in February 2026. While layoffs remain the most common method for reducing headcounts in the tech sector, Microsoft appears to be adopting a similar strategy to manage its workforce.
Microsoft has also conducted direct layoffs earlier this year. In July, the Xbox division laid off 3,200 employees, which accounted for about 20 percent of its entire gaming division. The current voluntary buyout program offers a different approach, allowing employees to choose whether to accept a deal now or remain with the company and face the uncertainty of potential future layoffs.
Eligible employees will receive contact via email on Monday. Microsoft is scheduled to announce its latest earnings after market close later this week.
Source: Ars Technica
