Microsoft announced on Monday a voluntary exit offer for up to 60,000 employees, spanning operations in the U.S., U.K., Canada, and India. This program, detailed in a memo from Chief People Officer Amy Coleman, provides eligible staff with financial support and career planning resources if they choose to leave the company. The eligible pool constitutes more than 25% of Microsoft's global headcount, which stood at 223,000 full-time employees as of June 30, 2026.
The Voluntary Exit Offer is available to employees at internal level 70 and below, encompassing senior leaders and general managers, but excluding corporate vice presidents. A Microsoft spokesperson confirmed that the terms of the offer will be similar to the company's standard severance packages. This typically includes base pay, continued stock vesting for a period, healthcare benefits, and career transition assistance. Unlike a previous voluntary retirement program earlier this year, this new offer does not have age or tenure requirements, nor does performance determine eligibility.
Not all teams are participating in this buyout initiative. Sales organizations, certain engineering groups, marketing, commercial business, security, and discovery and quantum teams are excluded. Eligible employees will receive an email with their specific terms and will have until early December to accept the offer, with their departure set for the end of the year.
This voluntary exit program follows earlier workforce adjustments by Microsoft. In April, the company offered a voluntary retirement program to about 7% of its U.S. workforce, approximately 8,750 employees, based on age and tenure criteria. Around one-third of those eligible accepted that offer. Subsequently, in July 2026, Microsoft cut 4,800 jobs, representing about 2% of its global workforce, including positions within its Xbox division. The company's overall headcount decreased by 5,000 from 228,000 in fiscal year 2025 to 223,000 in fiscal year 2026, marking the first annual decline in a decade.
Microsoft's Chief People Officer Amy Coleman stated in her memo that the Voluntary Exit Offer "reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter." She also noted that the program "gives participating organizations another way to adapt their workforce to changing needs." The company has been increasing its investment in artificial intelligence infrastructure, which includes significant capital expenditures on data centers. Microsoft is expected to report its quarterly earnings later this week, which may provide further insight into the costs associated with this program.