Microsoft's big workforce shake-up: 60,000 staff offered voluntary exit packages

Edited By: Anand P
File Photo | AFP
File Photo | AFP

San Francisco: Microsoft has rolled out voluntary exit packages for approximately 60,000 employees across several countries, making nearly 27 per cent of its global workforce eligible for the programme as the technology giant looks to reduce costs while accelerating investments in artificial intelligence (AI).

The latest move comes as Microsoft continues to reshape its workforce amid growing expenditure on AI infrastructure and technology.

According to a company spokesperson, the voluntary buyout programme will be available to employees in selected teams across the United States, Canada, India and the United Kingdom.

Staff holding positions at vice president level and below will be eligible for the offer. However, certain categories of employees, including some working in data centres, sales and marketing, have been excluded from the programme.

Explaining the company's decision, Amy Coleman, Microsoft's executive vice president and chief people officer, said the initiative was intended to provide employees with greater flexibility as the organisation undergoes changes.

"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," Amy Coleman, an executive vice president and chief people officer, told employees in a memo.

The announcement marks Microsoft's second voluntary separation initiative this year, reflecting its ongoing efforts to restructure operations and manage workforce costs.

In April, the company reportedly extended an early retirement option to approximately seven per cent of its employees in the United States.

According to CNBC, nearly 30 per cent of employees eligible for that programme opted for voluntary retirement.

The latest initiative comes against the backdrop of a gradual reduction in Microsoft's global headcount.

Regulatory filings show that the company employed approximately 223,000 people worldwide at the end of June 2026, compared with 228,000 at the end of 2025.

The figures indicate a reduction of around 5,000 employees during the first half of the year.

With approximately 60,000 workers now eligible for voluntary exit packages, the programme covers more than one in four Microsoft employees globally.

However, eligibility for the programme does not mean that all 60,000 employees will leave the company. The final number of departures will depend on how many eligible staff members accept the offer.

The workforce restructuring comes as Microsoft and other major technology companies continue to commit substantial resources to artificial intelligence, a rapidly expanding sector that requires significant investment in computing infrastructure and development.

Microsoft is scheduled to announce its quarterly financial results later this week, with investors expected to closely examine its spending on AI and efforts to manage operating costs.