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Microsoft offers voluntary buyouts to about 60,000 employees
Microsoft confirmed it is offering buyouts to around 60,000 employees at the vice president level and below on select teams in the United States, Canada, India and the United Kingdom. Bloomberg reported that the participating divisions include Xbox, Windows, Copilot and Finance. TechCrunch framed the move as part of Microsoft's effort to cut costs and rework its workforce for the AI age.
Key points
- Microsoft is offering buyouts to around 60,000 employees in four countries.
- Bloomberg reported Xbox, Windows, Copilot and Finance are among participating divisions.
- Terms are reportedly similar to standard severance; data center and sales staff are excluded.
What happened: Microsoft confirmed to TechCrunch on Monday that it is offering buyouts to around 60,000 employees. Business Insider first reported the plan, and Bloomberg later reported which divisions are involved. Chief people officer Amy Coleman sent staff a note, also published on the company blog, describing a "Voluntary Exit Offer" that gives eligible employees "a new choice to make that transition now with support."
The details: The offer covers employees at the vice president level and below on select teams in the United States, Canada, India and the United Kingdom. According to Bloomberg, participating divisions include Xbox, Windows, Copilot and Finance. Some groups, including data center staff and sales and marketing, are excluded. Eligible employees were to receive an email with a link to their offer details, and the terms are reportedly similar to Microsoft's standard severance. Microsoft had about 223,000 employees at the end of June.
Background: TechCrunch described the move as part of Microsoft's efforts to cut costs and rework its workforce for the AI age, noting that buyouts let a company reduce headcount without mass layoffs. In April, Microsoft offered buyouts to retirement age employees, and Bloomberg reported that more than 30 percent of the roughly 8,750 eligible workers accepted. Coleman's note said the voluntary exit offer "is new for us" and that the company will learn from it.
What to watch: Microsoft has not disclosed how many acceptances it expects or how the offer will change staffing on Copilot and Windows.
Our take
When the largest enterprise software vendor reshapes teams that build Copilot and Windows, buyers should watch for changes in product roadmaps and support.