Key takeaways

  • Microsoft launched a Voluntary Exit Offer on October 26 for eligible employees at level 70 and below in the US, Canada, India and the UK.
  • Not every team participates; Microsoft's memo says participation varies by business.
  • The 60,000 figure and the pay terms come from press reports, not from Microsoft's memo.

Microsoft began offering voluntary buyouts on October 26 to employees in the US, Canada, India and the UK. The company calls it a Voluntary Exit Offer, and press reports put the number of eligible staff at about 60,000, roughly a quarter of its workforce. Chief people officer Amy Coleman announced it in a memo on The Official Microsoft Blog.

The memo says the offer is open to eligible employees in participating teams at level 70 and below. Microsoft does not say in the memo how many people that is. The 60,000 figure comes from SiliconANGLE and other outlets.

What Microsoft says

Coleman describes the offer as a time-limited, voluntary program that gives employees "a new choice" to make a transition "now with support," in the form of financial support and career planning resources. Eligible employees were to get an email with their offer details within hours of the memo.

Not every team takes part. "Some organizations are providing the Voluntary Exit Offer, and some are not," the memo says, with participation depending on each business's priorities, customer commitments and workforce needs. SiliconANGLE, citing GeekWire, reports that some marketing, sales and engineering teams chose not to participate.

Reported terms

Microsoft's memo gives no numbers on pay. SiliconANGLE, citing Business Insider, reports these terms:

  • Employees at level 64 or below get one week of pay for every six months at the company.
  • Employees at levels 65 to 67 get two weeks of pay for the same period.
  • Stock vesting continues for six to 12 months, with limited healthcare coverage and outplacement support.
  • Staff have until early December to accept and leave later that month.

We have not seen these terms in a Microsoft document, so treat them as reported, not confirmed.

How it fits Microsoft's year

SiliconANGLE ties the offer to Microsoft's heavy spending on AI. Coverage of the offer also describes an earlier voluntary retirement program this year and layoffs in July. Microsoft reports quarterly earnings on October 28, and investors may look for comment there on headcount and costs.

Sources

  1. Introducing a Voluntary Exit OfferThe Official Microsoft Blog
  2. Microsoft offers voluntary buyouts to 60,000 employees amid AI investmentsSiliconANGLE