Thousands of Microsoft employees will soon have a decision to make about their future with the company. On Monday, the software maker introduced a new departure program that would allow qualifying workers to leave voluntarily and receive a buyout package.
Around 60,000 people could qualify for the offer. Microsoft employed approximately 223,000 full-time workers at the end of June, meaning the program could reach more than one in four people on its worldwide payroll.
The opportunity isn’t being offered across the entire company. Microsoft has selected certain departments in four countries, with employees in the United States, Britain, Canada and India among those who can participate. Eligibility also depends on where a worker falls within the company’s job-ranking system.
The cutoff is level 70, which includes some fairly senior positions. According to the career information website Levels.fyi, Microsoft’s upper employee levels include principal, partner and distinguished positions. Workers above the designated cutoff aren’t covered by the new arrangement.
Several familiar Microsoft businesses are involved. Some employees working with Windows, Xbox and Copilot can participate, along with workers in finance and human resources. Other departments, including certain marketing and security operations, have been left out.
Amy Coleman, Microsoft’s chief people officer, said the company considered the needs of individual business groups when deciding where to make the offers available. The idea is to provide an alternative for employees already thinking about pursuing work elsewhere, while allowing departments to make staffing changes.
Microsoft tried a smaller version of this approach earlier in the year. During April, roughly 8,750 American employees received voluntary retirement offers, mainly targeting people who had spent longer periods working for the company.
Nearly three out of every ten eligible workers accepted that earlier offer. Microsoft has since expanded the approach to include employees who aren’t necessarily close to retirement.
The company has also reduced its workforce through layoffs. During July, thousands of positions were eliminated as Microsoft made changes to its operations, including its gaming business. Whether more compulsory job reductions will happen after the current program remains unanswered.
Money being directed toward artificial intelligence is another part of the company’s current situation. Microsoft expects its capital spending to reach approximately $175 billion during 2026, with investments going toward the facilities and equipment required to operate increasingly demanding computing systems.
Other technology businesses have been making staffing adjustments as well. Alphabet, Google’s parent company, previously gave certain employees opportunities to leave voluntarily through programs introduced in 2025 and early 2026.
Microsoft plans to notify qualifying workers directly by email. The amount of time employees have to respond depends on their location, although departures under the program are expected to be completed by late December.
The announcement arrives just ahead of another financial update from Microsoft. Its next quarterly earnings are scheduled for release Wednesday, following a previous quarter in which the company reported $90 billion in revenue and $35.8 billion in profit.
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