Microsoft is offering voluntary buyout packages to around 60,000 employees, nearly a quarter of its workforce, as it looks to manage costs while investing heavily in artificial intelligence. The offer covers eligible employees at vice president level and below in select teams across the US, Canada, India and the UK. However, the scheme does not extend to everyone, with some employees in areas such as data centers, sales and marketing excluded.

How Much Severance Pay Is Microsoft Offering Employees?
Microsoft's voluntary buyout packages differ based on an employee's job level, years of service and location, according to Business Insider. Employees at level 64 and below are reportedly being offered one week of base pay for every six months of service, while those at levels 65 to 67 may receive two weeks for the same period. The payout is not uniform across the workforce, and the final amount depends on individual circumstances.

Microsoft Employees Could Get Up to 12 Months of Salary
The severance terms vary by seniority, with employees at level 68 offered a package equivalent to 12 months of salary, according to the report. Eligible employees may also receive continued stock vesting and health insurance benefits. For staff at level 67 and below, severance pay is capped at 39 weeks of base salary, while stock vesting can continue for six or 12 months, depending on their tenure.

When Is the Deadline to Accept Microsoft's Buyout Offer?
Eligible employees have until early December to decide whether to accept the voluntary exit package. Those who opt in are expected to leave Microsoft by the end of the year. The company has reportedly said it does not currently plan another buyout program. However, it has not guaranteed that employees who decline the offer will be protected from future layoffs or restructuring.

Microsoft Had Offered Voluntary Retirement to 8,750 US Employees Earlier
This is not Microsoft's first voluntary exit initiative in 2026. In April, the company introduced a retirement program for around 8,750 US employees who met specific age and service requirements. More than 30% of those eligible accepted the offer, according to Microsoft's Chief People Officer Amy Coleman. The company subsequently eliminated around 4,800 roles globally in July as part of a broader restructuring, although there is no established evidence that employees who rejected the earlier offer were specifically targeted for job cuts.