Microsoft Offers Voluntary Buyouts to ~60,000 Employees Amid AI Spending Pressures

Microsoft Chief People Officer Amy Coleman sent a memo to employees on Monday announcing a new "Voluntary Exit Offer" (VEO). According to Business Insider, the program targets employees in the United States, Canada, India, and the United Kingdom at internal level 70 and below. A Microsoft spokesperson stated that around 60,000 employees—more than a quarter of the company's workforce—are eligible.

The terms of the buyout are similar to Microsoft's standard severance packages offered earlier this year. Eligible employees will receive emails with specific details later on Monday and must decide by early December to exit at the end of the year. Participation is limited to certain teams, excluding sales organizations, some engineering groups, and some corporate functions.

This initiative represents Microsoft's latest attempt to slim its workforce without another round of involuntary cuts, following significant spending on AI infrastructure and previous headcount reductions. It builds on a prior Voluntary Retirement Program that targeted about 9,000 employees, where roughly one-third accepted the offer. The new VEO tests whether voluntary departures can effectively cut costs.

For investors, this action highlights the cost-control strategies employed by hyperscale technology companies facing rising AI capital expenditures. By encouraging voluntary departures with financial support, Microsoft seeks to balance high tech investment with operational efficiency. However, the actual financial impact remains uncertain until the acceptance rate is known.