- Microsoft (NASDAQ:MSFT) is offering voluntary buyouts to eligible employees across several major divisions in the U.S., U.K., Canada, and India
- The program aims to reduce headcount through voluntary departures rather than another company-wide round of layoffs
- Unlike a previous retirement initiative, the new offer is not based on age, years of service, or employee performance criteria
- Microsoft stock (NASDAQ:MSFT) opened trading at US$532.32
Microsoft’s (NASDAQ:MSFT) has launched a broad voluntary exit program that could be available to as many as 60,000 employees across the United States, United Kingdom, Canada, and India, as the technology giant looks to reduce its workforce without implementing another major round of layoffs.
In a message to employees, Microsoft’s chief people officer (TIL that’s a job), Amy Coleman, said the program is designed to give staff “the opportunity to leave Microsoft with financial support and career planning resources” while helping the company reshape its workforce.
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According to a report by The Verge, employees across a wide range of business units are eligible for the voluntary buyout offers. Sources familiar with the matter said the program includes workers in Microsoft’s AI Experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance, and human resources organizations.
Some portions of Microsoft’s Cloud + AI, MicrosoftAI, and Corporate, External and Legal Affairs divisions are also participating. However, employees within the company’s marketing, commercial business, Discovery and Quantum, and security organizations are not included in the current program, according to the report.
The buyout initiative comes only months after Microsoft laid off approximately 4,800 employees, with the cuts largely affecting its Xbox and commercial sales operations. There were also just over 250 positions eliminated last month at Xbox and reports have also suggested that Xbox could face additional workforce reductions in the future.
Unlike Microsoft’s earlier voluntary retirement program announced this year, the new offer is not limited by age, tenure, or employee performance. The previous retirement package was available to roughly 9,000 U.S. employees whose age and years of service combined totalled at least 70.
In an internal HR communication reviewed by The Verge, Microsoft said the new voluntary exit offer is intended to provide greater flexibility for employees while supporting the company’s evolving business needs. The company also indicated that similar programs could be considered in the future if workforce conditions warrant additional changes.
Microsoft Corp. develops and supports software, services, devices, and solutions. The company’s segments include productivity and business processes, intelligent cloud, and more personal computing.
Microsoft stock (NASDAQ:MSFT) opened trading 0.070% higher at US$532.32, but moved lower in early trading, though it is up nearly 10% since the year began.
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