Microsoft Proposes Buyout for 25% of Its Workforce Amid Restructuring Efforts

Microsoft has announced a new initiative aimed at streamlining its workforce by offering voluntary buyouts to eligible employees in certain regions. As reported, this program could impact about 60,000 employees, representing roughly a quarter of the company’s global workforce. The tech giant describes the voluntary exit offer (VEO) as a supportive option for those who may be contemplating a career transition.

Eligible employees will include those located in the United States, India, Canada, and the United Kingdom. Specifically, Microsoft has set the eligibility criteria for those at level 70 or below within its internal ranking system. According to the career database Levels.fyi, levels 65-67 correspond to principal positions, while levels 68-70 relate to partner or distinguished roles. Chief People Officer Amy Coleman indicated that the organizations eligible for the buyout program were chosen based on business priorities and workforce requirements.

This marks Microsoft’s second voluntary workforce reduction in 2026. Earlier in the year, the company extended a retirement package to around 8,750 employees in the U.S. Furthermore, in July, the Xbox division underwent significant downsizing, laying off approximately 3,200 employees, constituting 20% of its workforce. As reported, around 30% of those eligible accepted the retirement offer from April, which helped mitigate some of the anticipated layoffs.

The expansion of the buyout offer to a wider pool of employees represents a strategic approach by Microsoft as it continues to navigate its financial landscape, particularly in light of ongoing investments in AI infrastructure and data center operations. The company has emphasized managing costs effectively amid these initiatives.