Microsoft Offers 60,000 Employees Voluntary Buyouts With Up To 12 Months' Pay Amid AI Push

Microsoft is offering voluntary exit packages to around 60,000 employees across four countries, even as it pours billions into artificial intelligence (AI) infrastructure.

The offers cover approximately 27% of its 223,000 employees, with some eligible for severance packages worth up to 12 months' salary. However, the company isn't asking all 60,000 employees to leave.
 

TL;DR

• Microsoft has introduced voluntary buyout offers for approximately 60,000 eligible employees in the US, Canada, India, and UK.
• Severance benefits vary by employee level, tenure, and location, with some packages reaching 12 months' pay.
• Employees must decide by early December, with participating workers departing on December 31, 2026.

Microsoft Voluntary Buyouts Cover 60,000 Employees Across Four Countries

According to reports, Microsoft's Voluntary Exit Offer (VEO) applies to select employees at experience level 70 and below, including workers up to the vice president level.

However, the initiative isn't company-wide. Some engineering, sales, and marketing teams are not participating, while certain data center roles are also reportedly excluded.

Interestingly, Microsoft hasn't established a target for how many employees it wants to leave.

In an employee memo, Amy Coleman, Microsoft's Executive Vice President and Chief People Officer, said the initiative provides greater flexibility as employees navigate organizational changes.

"This builds on what we learned earlier this year through the Voluntary Retirement Program," Coleman added.
 

Microsoft Severance Packages Offer Up To 12 Months' Salary

The financial incentives depend on employee seniority, years of service, and location.

As reported, employees at level 64 and below may receive one week of base salary for every six months of service, while levels 65 through 67 could receive two weeks for the same period.

Employees at level 68 are reportedly eligible for packages equivalent to 12 months' salary.

For employees at level 67 and below, severance payments are capped at 39 weeks of base salary. Eligible workers may also receive continued stock vesting for six or 12 months, alongside health insurance benefits.

Employees have until early December to accept the offer, with December 31 set as their departure date. Microsoft reportedly isn't planning another voluntary buyout immediately, although declining the offer doesn't guarantee protection from future restructuring.
 

Microsoft's AI Infrastructure Spending Drives Workforce Efficiency Push

The voluntary exits come as Microsoft attempts to balance its AI ambitions with operational efficiency.

The company expects capital expenditure to exceed $50 billion in the September quarter, compared with $34.9 billion in capital spending and finance leases during the corresponding period last year.

Its expanding AI infrastructure supports cloud demand from companies including OpenAI and Anthropic, while Microsoft increasingly incorporates AI tools into its own operations.

This follows Microsoft's earlier restructuring that eliminated 4,800 jobs in July.

Microsoft had also introduced a voluntary retirement program for around 8,750 eligible US workers in April, with more than 30% accepting.

Yet, Microsoft recorded $19.64 billion in positive free cash flow in the second quarter, although that represented a 23% year-over-year decline.
 

Microsoft Voluntary Exit Program Highlights Its AI Workforce Transformation

The initiative arrives as Microsoft rethinks how employees work, how AI tools improve productivity, and where future investments should go.

Despite the financial pressure, the company continues investing in infrastructure while seeking a workforce aligned with its changing business priorities.

The number of employees who will ultimately accept the buyouts remains unknown, making the actual workforce impact an important development to watch.