Earlier this year, Microsoft reduced its workforce through layoffs and rolled out a narrower voluntary retirement program for roughly 9,000 eligible U.S. employees. About one-third accepted that earlier offer, according to a person familiar with the results—a turnout that reportedly helped Microsoft make fewer layoffs than it otherwise might have.¹

Now the company is testing that formula on a far larger scale. Chief People Officer Amy Coleman told employees on Monday that the new Voluntary Exit Offer would give eligible staff “a new choice to make that transition now with support,” while giving participating organizations “another way to adapt their workforce to changing needs.”¹ About 60,000 workers in the U.S., Canada, India and the U.K.—more than a quarter of Microsoft’s workforce—can receive offers, though participation varies by team.¹

The rollout is broad but selective. Employees in AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance and HR are among those eligible, while marketing, commercial business, discovery and quantum, and security teams are excluded. Cloud + AI, MicrosoftAI, and legal and corporate-affairs groups are only partly covered.² That patchwork underscores Microsoft’s central calculation: trim where it can while protecting areas it considers strategically essential.

For those offered an exit, the terms largely mirror standard U.S. severance. Staff at levels 64 and below can receive one week of base pay for every six months worked; those at levels 65 through 67 can receive two weeks. Continued stock vesting and health coverage are also included, with a decision deadline in early December and departures planned for year-end.³

Microsoft says there are no plans for another buyout. Yet voluntary programs carry their own risk: HR specialists have warned that broadly available packages can soften compulsory cuts—but can also encourage valuable, experienced employees to walk out the door.³