Microsoft will offer a voluntary severance package to roughly 60,000 employees, according to a memo sent Monday by Amy Coleman, the company’s head of human resources. The memo states the offer will be available to workers at the vice president level and below in certain divisions in the United States, Canada, the United Kingdom and India.
Coleman wrote that the offer is intended for eligible employees who may be considering careers outside the company and that it provides support for those who want to make that transition now. She added that the participating organizations will have an opportunity to align headcount with changing business needs.
Reuters notes that the figure of about 60,000 represents more than one quarter of Microsoft’s total workforce. The Financial Times, citing a person familiar with the matter, reported that affected units include Xbox, Windows and Copilot, while functions such as marketing and sales are not eligible for the package.
Observers and media coverage suggest the move is partly aimed at reining in costs as Microsoft — like other major tech firms — is investing heavily in artificial intelligence, spending on the order of hundreds of billions of dollars on AI development while adjusting its organizational structure and staffing to strategic priorities.
This voluntary exit offer follows an earlier initiative at Microsoft: in July the company made an "early retirement" program available to older, long-tenured employees. Of the more than 8,000 employees eligible at that time, about 30 percent accepted the offer.
Further specifics, including exact eligibility criteria, financial terms of the packages and application deadlines, are expected to be clarified in Microsoft’s internal communications and subsequent announcements.
