Microsoft has announced a voluntary exit programme covering approximately 60,000 employees in the United States, the United Kingdom, Canada and India. Equivalent to about 27% of its reported global workforce of 223,000, the offer extends to selected employees at internal career level 70 and below, reaching into senior leadership.
Participation varies by business needs, with some data centre, sales and marketing employees excluded. Eligible staff have until early December to accept, with departures scheduled for 31 December. Payments depend on length of service and local employment law; US terms include at least eight weeks of pay, health coverage support and career services.
Microsoft anticipates that fewer than 5% of eligible employees will participate and says significant workforce reduction is not the programme's intention. Chief People Officer Amy Coleman presented it as an option for employees already contemplating opportunities outside the company. An earlier, distinct retirement programme offered more generous terms to about 8,700 long-serving US employees, roughly 30% of whom accepted.
The latest offer comes against a backdrop of sharply rising equipment expenditure. Microsoft spent $115.9 billion on property and equipment in the financial year ending 30 June, compared with $64.6 billion a year earlier. Over that period, its workforce declined by approximately 5,000.
Microsoft says AI is not driving its buyout programmes, although some economists interpret the changes as a shift towards greater reliance on equipment and fewer workers. Seattle University economist Joseph Phillips emphasises workforce reorganisation rather than downsizing alone, noting that Microsoft has continued hiring despite announcing substantial job cuts.
