Microsoft offers voluntary buyouts to about 60,000 employees in four countries
Microsoft is offering voluntary exit packages to roughly 60,000 staff in the US, UK, Canada and India, far beyond an earlier 9,000-person retirement offer, as it protects AI infrastructure spending.
Curated by Javier DíazWritten with Claude · Thu 29 Oct, 17:00 · 2 min read · briefed from 1 sourceIn context
- 01Microsoft is offering voluntary buyouts to about 60,000 employees across the US, UK, Canada and India, roughly a quarter of its workforce, according to The Verge.
- 02Eligible employees have until December to decide. Even a 5 percent acceptance rate would mean about 3,000 departures.
- 03Headcount fell to about 223,000 as of June 30, from 228,000 in 2025, the first year-over-year decline in a decade.
- 04The offer reportedly mirrors regular severance: cash based on tenure, accelerated stock vesting, subsidized health coverage and career services.
- 05The offer follows a layoff of 4,800 employees months ago, hitting Xbox and commercial sales most, with rumors of more cuts in November and January.
What happened
Microsoft is offering voluntary buyouts to around 60,000 employees across the US, UK, Canada and India, The Verge reports. It is the first time the company has made such an offer to so many people. It expands on a retirement offer earlier this year that was limited to about 9,000 employees.
According to The Verge, the effort is meant to let Microsoft lower operating costs and headcount without reducing investment in AI infrastructure. Sources familiar told the outlet the terms are practically the same as regular severance: cash based on time at the company, accelerated stock vesting, some additional subsidized health coverage and several months of career services.
Eligible employees have until December to decide. More than 30 percent of the 9,000 staff offered the earlier retirement deal accepted it, but the uptake this time is expected to be far lower, The Verge says. Even 5 percent would be 3,000 people.
Why it matters
The buyout comes after a run of cuts. Microsoft laid off 4,800 employees just months ago, with Xbox and commercial sales hit hardest, and cut 4 percent of its workforce in July last year. Its headcount was about 223,000 as of June 30, 5,000 fewer than the 228,000 it employed in 2025, the first annual drop in a decade.
“Our total people costs will go down, our cost per head will go up, and my GPU per researcher will go up,”
The Verge ties the move to Nadella's remarks on a podcast almost two years ago: "Our total people costs will go down, our cost per head will go up, and my GPU per researcher will go up." In practice, that means fewer staff, higher pay and more AI tools for those who remain.
Some see the cuts as overdue. Merill Fernando, a former Microsoft Entra product manager, says the company has "lots of small orgs" and "layers on layers." The Verge also frames a cultural question: whether Nadella can reshape Microsoft for AI without undoing the empathy-centered culture that defined his tenure.
What to watch
The December deadline means the number of acceptances will not be known for a while. The Verge expects that figure to inform the size of Microsoft's next round of layoffs, which it says are rumored for November and January.
Sources
This briefing was written by Claude from the sources above. Check the original reporting before relying on it. How we work