Microsoft offers voluntary buyouts to a quarter of its workforce

Microsoft is offering voluntary buyouts to about 60,000 employees - roughly a quarter of its workforce - as it continues to reduce headcount. The offer applies to selected staff in the United States, United Kingdom, Canada and India who are at level 70 or below in the company’s ranking system, a range that extends up to vice president. Organization leaders decided which teams could participate, leaving out areas including sales, some corporate services such as marketing, and some engineering groups. The package is expected to resemble Microsoft’s standard severance, which varies by location and generally includes pay tied to tenure, previously granted stock, health coverage and career-planning support.

This is Microsoft’s second voluntary departure program in a few months. An earlier early-retirement offer, limited to employees meeting tenure requirements and at level 67 or below, was taken up by about 30% of those eligible; the company expects fewer employees to accept this round, which is less generous. Microsoft says artificial intelligence is not driving the buyouts, though the company has cut jobs over several years while investing heavily in the infrastructure needed to develop and operate AI models. The company presents the new offer as an additional way for employees considering a departure to leave with support and for individual teams to adjust staffing to changing business needs.