Microsoft Offers Voluntary Buyout Packages to Around 60,000 Employees
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Microsoft is offering voluntary buyouts to roughly 60,000 eligible employees — its second voluntary-separation program this year, signaling the company would rather pay people to leave than force another round of layoffs.
How does the buyout work?
Chief People Officer Amy Coleman sent an internal memo Monday announcing a Voluntary Exit Offer (VEO).
It covers employees in the US, Canada, India, and the UK at internal level 70 and below.
Sales, some engineering teams, and certain corporate-function groups are excluded.
Eligible staff will receive terms by email Monday evening; they must decide by early December and leave by year-end.
How much are they offering?
The severance terms are close to the standard package used in Microsoft's forced layoffs earlier this year: a minimum of 60 days' base pay, up to a maximum of 39 weeks'.
The exact amount depends on level and tenure: level 64 and below get 1 week of base pay per 6 months of service; levels 65–67 get 2 weeks per 6 months.
This means → the more senior and longer-tenured you are, the bigger the check — the company is using financial incentives to nudge veteran staff toward the exit.
Why a second round?
The VEO is Microsoft's second voluntary program this year. Earlier, it offered a Voluntary Retirement Program to about 9,000 employees who met age and tenure criteria.
Roughly one-third of those eligible accepted — in line with what the company expected.
Coleman's memo said the VEO "builds on what we learned from the retirement program," aiming to give employees flexibility while letting business units reshape headcount to fit their needs.
What to watch next?
The key variable is the final acceptance rate — it determines whether the cost savings hit the target.
In plain terms = if enough people take the deal, Microsoft avoids another forced layoff; if too few do, the next round may not be voluntary.
A Microsoft spokesperson said there are no plans to offer another buyout after this one.
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