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Microsoft offers voluntary buyouts to 60,000 staff across four countries

Developing story first seen 3 hours ago

The Verge · 3 hours ago

Microsoft’s voluntary buyout offer excludes commercial sales staff and is separate from reported plans for further Xbox layoffs. The offer allows up to 60,000 employees in the US, UK, Canada and India to leave with financial support and career planning resources, as the company seeks to reduce staffing without another round of compulsory redundancies.

Eligible teams include AI experiences, Copilot, Windows + Devices, Xbox, finance and human resources, while some cloud and AI teams are only partly included. Marketing, security and several other groups are excluded. The offer follows 4,800 job cuts and differs from an earlier programme for about 9,000 US employees; Microsoft says eligibility is not based on age, service length or performance.

Sources: 6
Outlets: 6
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In short

Microsoft offers buyouts to up to 60,000 staff.
Commercial sales teams are excluded.
The offer follows 4,800 recent job cuts.

How this story developed

5 minutes ago No further change was reported: the buyout remained available to eligible staff, with Microsoft saying selection was not based on age, length of service or performance.
10 minutes ago Microsoft confirmed commercial sales staff were excluded, and the offer was distinct from reports of possible further Xbox layoffs.
1 hour ago The eligible groups were clarified to include finance and human resources, while marketing, security and some cloud and AI teams were excluded or only partly covered.
2 hours ago Microsoft offered voluntary buyouts to as many as 60,000 staff in the US, UK, Canada and India, giving them financial support and career advice as an alternative to compulsory redundancies.

26 Oct, 17:12Engadget Microsoft reportedly offers voluntary buyouts to 60,000 employees as an attempt to trim costs
26 Oct, 18:07Rock Paper Shotgun With Xbox cuts not done, Microsoft offer voluntary buyouts to around 60,000 workers across the company in latest attempt to get rid of staff
26 Oct, 19:07Eurogamer Amid sweeping layoffs at Xbox and massive AI investments, Microsoft introduces a "Voluntary Exit Offer" to 60,000 workers
26 Oct, 19:09Destructoid Microsoft restructuring continues with 60,000 employees given buyout offer to leave now, or probably get laid off later anyway
26 Oct, 19:09The Verge Microsoft offers voluntary buyouts to 60,000 staff across four countries
26 Oct, 19:09IGN Microsoft Offer Buyouts to 60,000 Workers as It Doubles Down on AI Investment

Full account

Microsoft is offering a voluntary exit package to as many as 60,000 employees in the United States, the United Kingdom, Canada and India. The offer is intended to let staff leave with financial support and career-planning help, giving the company a way to reduce its workforce without announcing another compulsory redundancy round. The 60,000 figure describes potential eligibility, not the number of people expected to depart.

The reports say the scheme is open to selected employees at vice-president level and below, but participation varies by business area. The Verge’s account names several teams that are included, alongside others that are only partly covered or excluded. It says the offer does not include marketing, commercial business, discovery and quantum, or security teams. Another report notes that data-centre staff are among those not eligible. The accounts therefore depict a broad programme with significant exceptions rather than a company-wide offer.

Microsoft chief people officer Amy Coleman described the scheme as a new approach, intended to give employees more choice while the company adjusts its priorities and workforce. The company says eligibility is not determined by age, service length or performance, and that it may consider further offers if business and staffing needs warrant them. This differs from a retirement programme offered earlier in the year, which was restricted to about 9,000 US employees meeting an age-and-service threshold. A report says roughly 30 per cent of those eligible for that earlier programme accepted, though the take-up for the new offer is unknown.

The announcement follows recent cuts, including the reported loss of 4,800 jobs, which particularly affected Xbox and commercial sales. The sources place the buyouts amid Microsoft’s wider investment in artificial intelligence and data-centre infrastructure, and efforts to reshape its workforce. One report characterises the offer as part of cost reduction and adaptation to the AI era; The Verge gives more detail on which teams can take part and distinguishes the new scheme from the earlier retirement offer. The reported terms are said to resemble a standard severance package, but the available accounts do not specify the package in detail.

Where outlets differ

From the full account, which is AI-written from the sources:

The Verge provides a detailed breakdown of participating and excluded teams, while the other report highlights that data-centre employees are excluded and frames the scheme in the context of AI-related spending and workforce restructuring.

The reports describe eligibility in different levels of detail: one says selected staff at vice-president level and below are covered, while The Verge focuses on team participation and says the offer is not based on age, tenure or performance.

The second report cites an earlier programme’s 30 per cent take-up and says the new package resembles standard severance; The Verge describes the earlier programme’s eligibility rules but does not give its acceptance rate or specify the new package terms.

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

A voluntary buyout can give employees more control over a difficult transition, with financial support and career planning to help them decide whether to leave. For Microsoft, reducing staffing through opt-in departures may limit the disruption and distress of compulsory redundancies while allowing the company to adjust its workforce.

The case against

Even when formally voluntary, a buyout can put pressure on employees who fear future job cuts or feel uncertain about their prospects if they stay. A large programme spanning major teams may also mean the loss of experienced staff and create anxiety about workloads and the company’s direction for those who remain.

Explained simply

Microsoft is a large technology company best known for Windows, Xbox and its workplace software, including Microsoft 365. It also makes Copilot, an AI assistant built into some of its products, and employs staff across many countries and teams.

Companies sometimes offer voluntary buyouts, giving employees money and career support if they choose to leave. This can reduce staffing while allowing people to decide whether to accept, unlike compulsory redundancies, which require selected employees to go.