Microsoft offers voluntary buyouts to 60,000 employees in global AI efficiency drive
The voluntary scheme covers up to 27 per cent of global workforce as the company reallocates resources into artificial intelligence infrastructure.
Microsoft is offering voluntary buyouts to approximately 60,000 employees worldwide, representing around 27 per cent of its global workforce of 223,000.
The initiative, titled the Voluntary Exit Offer, is open to eligible staff across participating teams in India, the United States, Canada, and the United Kingdom. It covers roles up to internal level 70, which includes vice presidents and executive technical leaders.
In an internal memo to staff, Amy Coleman, Microsoft's executive vice president and chief people officer, said the programme gives eligible employees considering a transition outside the company a choice to leave with financial support, while allowing participating organisations to adapt their workforce to changing needs.
Affected divisions and severance terms
The voluntary scheme applies to teams working on AI experiences, Copilot, Windows + Devices, Xbox, finance, and human resources. Other business units, including marketing, commercial sales, and security, are excluded.
Severance offers are structured according to internal job levels:
| Level range | Position scope | Severance package |
|---|---|---|
| Level 64 and below | Entry-level to experienced engineers | One week base pay per six months of service |
| Levels 65 to 67 | Principal leaders and senior managers | Two weeks base pay per six months of service |
| Level 68 and above | Executive leaders and vice presidents | 12 months salary |
For staff at level 67 and below, cash severance is capped at 39 weeks of base pay, with standard stock vesting running between six and 12 months depending on tenure. Eligible employees have until early December to decide whether to accept the offer, with departing staff scheduled to leave on 31 December.
Shifting resources to AI infrastructure
The move comes as Microsoft accelerates capital spending on artificial intelligence data centres and cloud facilities to meet rising computing demand for services supporting partners such as OpenAI and Anthropic. Capital expenditures for the September quarter were projected to exceed $50 billion, compared with $34.9 billion in the same period last year.
The voluntary buyout scheme follows a voluntary retirement scheme introduced in April and 4,800 direct job cuts announced in July, which primarily affected gaming and commercial sales divisions.
Long-term expansion in India
Despite adjusting its workforce structure globally, Microsoft reaffirmed its commitment to expanding its operational and technology base in India.
A Microsoft spokesperson confirmed that the company is backing India's digital growth with $20.5 billion in committed investment between 2025 and 2029. The funds are directed toward building cloud and AI infrastructure, operational facilities, and large-scale training initiatives.
"We are also on track to fulfil our commitment of equipping 20 million people across India with AI skills by 2030," the spokesperson said.
Key numbers
| What | Figure | Source |
|---|---|---|
| Eligible buyout pool | 60,000 employees | Microsoft internal briefing |
| Total global workforce | 223,000 employees | Microsoft annual filing |
| Committed India investment (2025-2029) | $20.5 billion | Microsoft spokesperson |
| India AI skilling target by 2030 | 20 million people | Microsoft spokesperson |
| September quarter capital expenditure | Over $50 billion | Microsoft financial guidance |
In this story
| Name | Role in the story |
|---|---|
| India | Participating country in buyout program and recipient of $20.5B AI infrastructure investment. |
| Microsoft | Technology company offering voluntary buyouts to staff. |
