Microsoft is offering voluntary buyouts to about 60,000 employees, roughly a quarter of its workforce, in a new “Voluntary Exit Offer” announced in a memo to staff on Monday, October 26. The offer covers participating teams in the US, Canada, the UK and India, and employees have until the first week of December to decide, GeekWire reports.
What we know
- Who: about 60,000 people, up to level 70 on Microsoft’s internal scale. That includes general managers and some employees with vice president titles, but not corporate vice presidents.
- Who is left out: business leaders decide whether their groups take part. The sales organization is not participating, nor are some engineering groups and corporate functions.
- No age or tenure rule: performance is not a factor either.
- The package: equal to Microsoft’s standard severance: base pay based on tenure and level, continued stock vesting, health coverage for a fixed period and career transition services. It does not include the extended health coverage of the spring retirement offer.
- Deadline: the first week of December. Eligible employees get the details by email.
What Microsoft said
Chief people officer Amy Coleman wrote that the offer gives employees “who may be considering a future outside the company a new choice to make that transition now with support.” A company spokesperson said it is not a sign Microsoft needs fewer people, and that it does not replace layoffs, which remain an option depending on business conditions.
Microsoft expects far fewer people to accept than the roughly 30% of 8,750 eligible US employees who took its first-ever voluntary retirement offer this spring.
Microsoft job cuts in 2026
- Spring: voluntary retirement program for long-tenured US staff; Microsoft disclosed a $900 million charge for it in April.
- July: 4,800 jobs, about 2% of the workforce, including about 600 in Washington state.
- September: hundreds more across the company.
- October: this voluntary exit offer.
Microsoft had 223,000 full-time employees on June 30, down from 228,000 a year earlier, before the July layoffs. It reports quarterly earnings on Wednesday, which may show what the offer will cost. Every round is on our Microsoft layoffs page and in the tech layoff tracker.
If you are eligible: questions to ask before you say yes
- What is my number? The package scales with tenure and level. Put your years and salary in our severance calculator to compare it with what other tech companies pay.
- Can I still get unemployment? Leaving voluntarily can affect eligibility in some states. Ask your state agency before you sign (U.S. Department of Labor: unemployment insurance).
- What happens to my health coverage and stock? Check how long coverage lasts and which grants keep vesting. See how long health insurance lasts after you leave.
- Is there room to negotiate? Standard packages are usually fixed, but read how to negotiate severance before you sign.
Sources
- GeekWire: Microsoft makes new ‘voluntary exit’ offer to about a quarter of its workforce (October 26, 2026)
- KUOW: Microsoft offers voluntary buyouts to a quarter of its workforce