Microsoft offers voluntary exit option to around 60,000 employees
What's the story
Microsoft has offered a voluntary exit option to its employees as a way to streamline its workforce. The move comes after major investments in artificial intelligence (AI) infrastructure and earlier job cuts this year. The company is now testing if voluntary separations can help save costs. Eligible employees will receive an email detailing the terms of the offer, Chief People Officer Amy Coleman said in an internal memo sent to employees on Monday.
Employee criteria
Eligibility criteria and exclusions for the voluntary exit offer
The voluntary exit offer is open to employees in the US, Canada, India, and the UK at level 70 and below. This includes senior leaders and other employees.
However, not all teams are participating in this program. Sales organizations, certain engineering teams, and some corporate functions have been excluded.
The voluntary exit offers come just months after Microsoft cut 4,800 jobs, mainly affecting its Xbox and commercial sales teams. Xbox CEO Asha Sharma is now planning further rounds of layoffs.
Workforce impact
Terms are similar to Microsoft's standard severance package
More than a quarter of Microsoft's workforce, or around 60,000 employees, are eligible for this voluntary exit offer.
The terms of the offer are similar to Microsoft's standard severance package.
Earlier this year, when Microsoft laid off 4,800 employees, it offered at least 60 days of base pay as severance to most US employees, during which they would remain on payroll and up to a maximum of 39 weeks based on seniority and tenure.
Decision timeline
Employees have until early December to decide on exit offer
Employees eligible for the voluntary exit offer will have until early December to decide if they want to accept it and leave by year-end.
A Microsoft spokesperson told Business Insider that there are no plans for another buyout at this time.
The new move comes after a previous Voluntary Retirement Program that offered a retirement buyout to around 9,000 eligible employees based on age and tenure.
Internal communication
Microsoft Chief People Officer's memo details
In her memo, Coleman said, "The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter."
She added that this is a time-limited program giving eligible employees the chance to leave Microsoft with financial support and career planning resources.