Microsoft has offered voluntary buyouts to about 60,000 employees, or roughly 27% of its global workforce, in what analysts see as an effort to curb labor costs and restructure the company while it pours money into artificial intelligence infrastructure.
Microsoft notified employees the previous day that it was introducing a voluntary exit offer, or VEO, program, according to Business Insider and other U.S. business media outlets on the 27th.
Amy Coleman, Microsoft's chief people officer, explained the rationale in an internal memo, saying the program gives employees who are weighing a future outside the company a new option to make a career transition with support.
One in Four Employees Offered Exit, Including Windows and Xbox
The offer covers employees in selected organizations in four countries: the United States, Canada, the United Kingdom and India. Eligibility is limited to those at level 70 or below in Microsoft's internal job-level system, a range that includes some vice president-level staff.
About 60,000 employees qualify to apply. That is roughly 27% of the 223,000 full-time employees Microsoft reported in a filing at the end of June.
Not all 60,000 will leave, however. Each employee decides individually whether to accept, and the company has not disclosed a target for how many departures it expects.
By division, Windows, Copilot, Xbox, finance and human resources are among those included. Data centers, sales and marketing, and cybersecurity are among the organizations excluded.
Employees who accept will receive severance pay and career transition support. In the United States, compensation will follow the existing standard severance framework, with payouts varying by job level and length of service.
Eligible employees must decide by early December. Those whose exits are approved will leave the company at the end of the year.
Rising Costs From AI Investment Drive Repeated Workforce Changes This Year
The move comes as Microsoft continues large-scale investment in AI technology and related infrastructure, including data centers.
Analysts read it as an attempt to reshape the workforce and lower cost pressures through voluntary departures rather than forced layoffs, as the company needs more cash to expand its AI business.
Microsoft has repeatedly moved to reduce headcount this year. In April, it introduced an early retirement program for some employees whose age and years of service added up to 70 or more. About 8,750 employees were eligible at the time, and roughly 30% of them accepted the offer.
In July, the company cut about 4,800 jobs, centered on its gaming business including Xbox.
Because this round extends beyond rank-and-file staff to some senior positions, it raises the possibility of a broader reorganization than earlier rounds.
The company maintains that the program does not amount to an immediate mass layoff. How many employees will actually choose to leave remains unconfirmed.
Coleman said the program is "an important part of how our approach to change is evolving," adding that it "creates greater flexibility and gives employees more ways to plan their next step."