Redmond, Wash. — Microsoft Offers Buyouts to 60,000 Employees

Microsoft told employees in four countries Monday that they can apply to leave the company voluntarily, with buyout offers reaching about a quarter of its global workforce, according to Ars Technica.

CNBC reported the voluntary exit offer (VEO) will go to roughly 60,000 employees, Ars Technica said, citing the network's reporting. Microsoft employs people in the United States, Canada, India and the United Kingdom who are eligible for the program, per Ars Technica.

Microsoft did not give a single reason for the buyouts. The company has spent several years managing costs while funding AI infrastructure and data-center buildout, Ars Technica reported. Microsoft will announce its latest quarterly earnings after market close later this week, the outlet said, putting the program in front of investors within days.

Who Is Eligible for Microsoft's Buyout Offer?

Employees at level 70 or below qualify for the voluntary exit offer, according to Microsoft, as reported by Ars Technica. Microsoft's internal ranking system is not public, but the career database Levels.fyi lists levels 65 through 67 as principal-level roles and 68 through 70 as partner or distinguished-level positions, Ars Technica said.

Eligible employees were to be contacted by email on Monday, according to Microsoft's company blog as cited by Ars Technica.

Chief People Officer Amy Coleman said the eligible business units were chosen "based on each business's priorities, customer commitments and workforce needs," Ars Technica reported.

How Many Employees Received the Offer, and How Big Is It Compared With Earlier Cuts?

Two figures frame the scale of Monday's announcement:

• About 60,000 employees are eligible for the new voluntary exit offer, or roughly a quarter of Microsoft's global headcount, Ars Technica reported, citing CNBC.
• 8,750 U.S. employees received a narrower voluntary retirement package in April, Microsoft's first such offer in 2026, according to Ars Technica.

About 30 percent of employees eligible for the April package accepted it, Coleman said, as reported by CNBC and cited by Ars Technica. That acceptance rate reduced the scope of layoffs the company later carried out, according to Coleman.

In July, Microsoft's Xbox division laid off 3,200 employees, about 20 percent of its entire gaming unit, Ars Technica reported. Monday's offer marks the second voluntary workforce reduction Microsoft has run in 2026, the outlet said.

Why Is Microsoft Expanding Voluntary Exits Now?

Coleman told GeekWire in July that Microsoft was examining whether voluntary exits should become a more regular part of its workforce management, according to Ars Technica. She said the current offer "builds on what we learned earlier this year through the Voluntary Retirement Program," per Ars Technica.

April's package targeted long-tenured employees nearing the end of their careers. Monday's offer reaches a far larger pool across more job levels and four countries, Ars Technica reported.

Layoffs remain the most common way technology companies cut headcount. Microsoft's approach instead resembles Alphabet's, according to Ars Technica. Business Insider reported that Alphabet offered voluntary exit packages to Google employees in June 2025, October 2025 and again in February 2026, Ars Technica said.

What Is Driving the Cost Pressure at Microsoft?

Ars Technica did not report a specific internal reason tied to Monday's offer. The outlet noted the buyouts arrive as Microsoft continues to manage costs while pouring money into AI infrastructure and data-center construction, a buildout that has defined the company's spending for the past several years.

Microsoft has not disclosed how much it expects to save through the voluntary exit program or how many of the newly eligible employees it expects to accept, according to the available reporting.

What Happens Next for Employees Who Received the Offer?

Employees who received Monday's email face a choice, Ars Technica reported: take the buyout now, or stay and risk future company-wide layoffs.

Timeline

• April 2026: Microsoft offers its first 2026 voluntary retirement package to 8,750 long-tenured U.S. employees.
• July 2026: Xbox lays off 3,200 employees, about 20 percent of the gaming division; roughly 30 percent of eligible April retirees had already accepted the earlier package, easing the cuts.
• Oct. 26, 2026: Microsoft extends a voluntary exit offer to about 60,000 employees in the U.S., Canada, India and the U.K.; eligibility emails go out Monday.
• Later this week: Microsoft reports quarterly earnings after market close.

Microsoft's statements, as compiled by Ars Technica from the company's blog, CNBC, GeekWire and Business Insider, do not specify a deadline for employees to respond to the offer.