Microsoft just asked about one in four of its workers a hard question: would you like to leave? On Monday, October 26, the company offered buyouts to around 60,000 employees, TechCrunch reported after Microsoft confirmed it. A buyout means the company pays you a package to quit on your own, instead of firing you. It is one of the biggest offers of its kind in tech.
The plan is called the Voluntary Exit Offer. It was announced in a memo from Amy Coleman, Microsoft’s chief people officer, who said it gives workers “a new choice to make that transition now with support,” CBS News reported. Business Insider was first to report the news, according to TechCrunch.
The offer covers people on certain teams in the U.S., Canada, the U.K. and India, up to some vice presidents. There is no age or time-on-the-job rule, and job performance does not count, GeekWire reported. The package matches Microsoft’s normal severance, with pay based on how long someone has worked there, plus health coverage for a set time and help finding a new job. Teams like Xbox, Windows and Copilot are taking part, while data center and sales and marketing staff are left out, TechCrunch said, citing Bloomberg. Microsoft had about 223,000 workers at the end of June.
Workers have until the first week of December to decide, according to GeekWire. This is Microsoft’s second buyout this year. In the spring, about 30% of roughly 8,750 eligible workers took an early retirement offer, and in July the company cut 4,800 jobs. Microsoft says this new offer does not replace layoffs, which could still happen. The company reports its earnings on Wednesday, and Wall Street wants it to control costs while it spends huge sums on data centers.
So is this kind or cold? Some people see a buyout as a fair choice: you get paid and leave on your own terms. Others see it as a softer way to shrink a company, with the quiet worry that if not enough people say yes, layoffs may follow. If you were offered money to quit your job tomorrow, would you take it?
Even the biggest, richest tech companies are shrinking their teams, so it pays to keep your skills fresh no matter where you work.
Sources:
TechCrunch: Microsoft offers buyouts to around 60,000 employees, reports say
GeekWire: Microsoft makes new ‘voluntary exit’ offer to about a quarter of its workforce, including some execs
CBS News: Microsoft offers buyouts to 60,000 workers as it pours money into AI
CNBC: Microsoft offers voluntary buyouts to 60,000 employees as AI leads to efficiency push
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