On a Monday in late October, Microsoft told roughly 60,000 of its employees, about a quarter of its workforce, that they could choose to leave with a buyout. It is the largest voluntary exit offer the company has ever made, and it reaches across the United States, Canada, India and the United Kingdom, down to senior management. The terms are still unwritten, held back for a later message, and the choice is framed as an opening for people already drifting toward a life elsewhere. It is also a company reshaping itself in the long wake of layoffs tied to the artificial intelligence boom, and the
Microsoft Offers Voluntary Buyouts to About 60,000 Eligible Employees, Its Largest Exit Program Yet
On a Monday in late October, Microsoft told roughly 60,000 of its employees, about a quarter of its workforce, that they could choose to leave with a buyout. It is the largest voluntary exit offer the company has ever made, and it reaches across the United States, Canada, India and the United Kingdom, down to senior management. The terms are still unwritten, held back for a later message, and the choice is framed as an opening for people already drifting toward a life elsewhere. It is also a company reshaping itself in the long wake of layoffs tied to the artificial intelligence boom, and the question of whether this quiet door comes before more forceful changes remains open.
On Monday, Microsoft told its employees that roughly 60,000 of them could now choose to leave the company with a buyout. Business Insider first reported it, and it would be the largest voluntary exit offer in the company's history, equal to about 27% of the workforce.
The announcement came in a memo from Amy Coleman, the company's chief people officer. Workers in the United States, Canada, India and the United Kingdom are covered, from employees at "Level 70" and below, including senior management. The memo contained no terms. Eligible workers were promised details within a few hours, in a separate message.
Coleman described the program as a choice, a way for people who may already be considering a future outside the company to make that move with support. She also said it gave organizations another way to adapt. "There is no one-size-fits-all approach for every team or every employee," she wrote.
The offer follows a voluntary retirement program announced in April, which about 7% of U.S. employees qualified for and roughly 30% of those eligible accepted. It also follows a run of involuntary cuts: about 4,800 jobs in the Xbox division this summer, and 6,000 and 9,000 jobs in two rounds the year before. CEO Satya Nadella tied those reductions to the pace of change during the AI boom.
Microsoft did not respond to SFGATE's questions about how many Bay Area employees are eligible, or whether buyouts would come before any layoffs. The terms and the uptake will show how attractive the offer is, and whether it stands alone or leads to more cuts remains to be seen.
On Monday, Microsoft told its employees that roughly 60,000 of them could now choose to leave the company with a buyout. Business Insider first reported the program, which would be the largest voluntary exit offer in the company's history. The figure amounts to about 27% of the workforce.
The announcement came in a memo from Amy Coleman, Microsoft's chief people officer. She wrote that workers in the United States, Canada, India and the United Kingdom are covered. Eligibility extends to employees at "Level 70" and below, a range that includes senior management positions.
What the memo did not contain is the offer itself. Coleman gave no terms, saying only that eligible employees would receive the details within the next few hours. The money, the timeline and any conditions were left for a second message to individual workers.
Coleman framed the program as a choice. In her words, it gives employees who may be considering a future outside the company a way to make that transition now, with support. She added that it also offers participating organizations another way to adapt their workforce to changing needs. "There is no one-size-fits-all approach for every team or every employee," she wrote.
She also drew a line between this program and an earlier one. In April, Microsoft announced a voluntary retirement program for employees whose age and years of service added up to 70 or more. According to CNBC, about 7% of U.S. employees qualified for that offer, and about 30% of those eligible accepted it. The new program is far broader, reaching across four countries and a much larger share of the staff.
It arrives after a run of involuntary cuts. This past summer, Microsoft eliminated about 4,800 jobs in its Xbox division. The year before, it announced two large layoff rounds: 6,000 jobs in May and 9,000 in July. CEO Satya Nadella tied those reductions to the pace of change in the tech industry during the artificial intelligence boom. In a July 24, 2025, staff memo, he wrote that getting both the product and the platform fight right for the AI wave was the company's "North Star."
Microsoft is based in Washington state and keeps offices in San Francisco, Berkeley and Mountain View. SFGATE asked the company how many Bay Area employees would be eligible, and whether the buyouts were expected to come before any layoffs. Microsoft did not respond.
Those two questions are the ones to watch. The terms of the offer will show how attractive it is, and the uptake will show how many people take it. Whether it stands alone or precedes further layoffs is something the company has not said.
Notable Quotes
This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.— Amy Coleman, Microsoft chief people officer, in a memo to employees
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