On Monday, Microsoft announced a new voluntary buyout initiative aimed at around 60,000 eligible employees, allowing them to exit the company with financial support and career planning resources.
This buyout program is significant, covering more than 25% of Microsoft’s global workforce, which stood at approximately 223,000 full-time employees as of June 30, 2026. Business Insider was the first to report on this development, which follows a previous voluntary retirement program introduced earlier this year.
Amy Coleman, the Executive Vice President and Chief People Officer at Microsoft, shared in a memo on the official Microsoft blog that this buyout reflects how the company is “evolving” its approach to change, aiming for greater flexibility and opportunities for employees to shape their career transitions.
The exit program is time-sensitive and applies to employees at levels 70 and below. Microsoft indicated that those eligible would receive emails detailing their exit offers shortly after the announcement.
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Participation in the voluntary buyout option is limited to select organizations within Microsoft, extending to eligible workers in the U.S., UK, Canada, and India. The choice to participate is determined by the priorities, customer commitments, and workforce needs of each business unit.
Coleman pointed out that this voluntary exit offer is a new initiative for Microsoft, and the company plans to learn from its implementation. She also noted the commitment to help employees focus on meaningful work, develop new skills, and where appropriate, explore other opportunities within Microsoft.
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“There isn’t a universal solution fitting all teams or employees,” Coleman remarked. “These efforts are just a few ways we’re attempting to accommodate varying business needs while still fostering growth for our staff.”
She promised to maintain transparency, listen closely, and continuously improve.
Earlier this year, Microsoft had offered voluntary buyouts to nearly 7% of its U.S. workforce, translating to about 9,000 employees. Additionally, the company made cuts impacting around 4,800 jobs in July, or about 2.1% of its global workforce, as part of significant changes to its Xbox gaming division, including the sale of up to five studios to enhance profitability.
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Microsoft, alongside other tech corporations, is navigating substantial investments into AI infrastructure, such as data centers and the specialized chips required for model training. This financial pressure has led to efforts to reduce costs across other operational sectors.
Reuters contributed to this report.
