The Microsoft Voluntary Exit Offer is a time-limited buyout open to about 60,000 employees, roughly a quarter of the company’s workforce, in participating teams in the US, Canada, the UK and India at internal level 70 and below. The package is roughly Microsoft’s standard severance. Employees have until the first week of December to decide, and those who accept are expected to leave on December 31, 2026.
Microsoft announced the offer in a staff memo on Monday, October 26 (US time). It is the company’s second voluntary departure program this year and is much broader than the first. Below is what has been confirmed, who is and is not included, and why it matters with Microsoft’s earnings due this week.
What Microsoft announced about the Voluntary Exit Offer
Chief people officer Amy Coleman announced the offer in a memo to employees. Microsoft said it will be “available to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below,” according to Reuters. Eligible staff were told they would get their individual terms by email.
In the memo, Coleman wrote that the offer “gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.” She added that it gives participating organizations “another way to adapt their workforce to changing needs.”
Microsoft told GeekWire that about 60,000 people are eligible. At its last reported count of 223,000 full-time employees (as of June 30), that is about 27% of the company.
Who qualifies for the Microsoft Voluntary Exit Offer
Four conditions decide eligibility:
- Country: You must work in the United States, Canada, the United Kingdom or India.
- Level: You must be at level 70 or below on Microsoft’s internal scale. GeekWire reports that this reaches general managers and some employees with vice president titles, but not corporate vice presidents.
- Team: Your organization must be taking part. Business leaders choose whether their group participates.
- No age, tenure or performance test: Microsoft says the offer is not based on age, length of service or performance.
Which teams are in and which are out
Microsoft has not published a full list. Based on reporting from The Verge and Reuters, citing people familiar with the plan:
- Participating: AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources.
- Partly participating: Cloud + AI, Microsoft AI, and corporate, external and legal affairs.
- Not participating: marketing, commercial business, discovery and quantum, and security. GeekWire also reports that the sales organization and some engineering groups are excluded.
Coleman wrote that participation “varies based on each business’s priorities, customer commitments, and workforce needs.” Being in a listed group does not guarantee an offer. Microsoft says eligible employees will be contacted directly.
What the Microsoft Voluntary Exit Offer package includes
Microsoft told GeekWire the package matches its standard severance:
- Base pay based on tenure and level
- Continued stock vesting
- Healthcare coverage for a fixed period
- Career transition services
The offer does not include the extended healthcare that was a major draw of Microsoft’s spring retirement program. Terms are individual, so two employees on the same team may get different numbers.
Key dates and deadlines
| Date | What happens |
|---|---|
| October 26, 2026 | Memo sent. Eligible employees receive terms by email. |
| October 28, 2026 | Microsoft reports quarterly earnings, which may show the expected cost. |
| First week of December 2026 | Deadline to accept or decline. |
| December 31, 2026 | Planned last day for employees who accept, per CNBC. |
How the Microsoft Voluntary Exit Offer differs from the spring retirement program
In April, Microsoft launched the first voluntary retirement program in its history. It was much narrower:
- It was open only to US employees at senior director level (level 67) and below.
- Your age plus your years at Microsoft had to reach a minimum total. The Verge reports that total was 70.
- About 8,750 people were eligible, and about 30% accepted.
- Microsoft recorded a $900 million charge for it in its April earnings report.
The Microsoft Voluntary Exit Offer has no age or tenure rule, reaches higher job levels and covers four countries. Microsoft told GeekWire it expects a much smaller share to accept this time, since the retirement offer went to long-serving staff who were more likely to take it. CNBC’s source said Microsoft has no acceptance target.
Why Microsoft is doing this now
The buyouts come while Microsoft spends heavily on AI. The company said its capital spending for the September quarter should exceed $50 billion, up from $34.9 billion a year earlier, CNBC reported. That money goes to data centers that run cloud services for customers including OpenAI and Anthropic. The cost of the AI race is a recurring theme in our coverage, from what Anthropic’s S-1 reveals about its compute bills to SoftBank’s $11 billion bond sale tied to OpenAI.
Microsoft has also cut jobs this year. It laid off 4,800 people in July, about 2% of its workforce, and hundreds more in September, after more than 15,000 job cuts in 2025, according to GeekWire. The company says the new offer does not replace layoffs, which remain possible depending on business conditions. A Microsoft spokesperson told GeekWire the offer is not a sign that it needs fewer people, calling it one of several ways it is adjusting to business needs.
What it means for employees and the industry
For eligible employees, the Microsoft Voluntary Exit Offer is a choice: leave now on severance-level terms, or stay and take the risk that later cuts may not be voluntary. Microsoft has said it may run future exit offers “where there is a business and workforce need.” Earlier this year, Coleman said the company was looking at making voluntary exits a regular part of how it manages its workforce.
For the wider tech industry, it stands out. GeekWire notes that buyouts are still rare at the biggest tech companies, which have mostly used layoffs, tougher performance reviews and return-to-office rules to shrink. A buyout this large at Microsoft could make the approach more common as companies try to fund AI spending while keeping costs down. Many of the eligible teams, including Copilot and CoreAI, build the AI products that now compete with rival tools such as Anthropic’s Claude Docs and Slides.
Frequently asked questions
How many Microsoft employees are eligible for the buyout?
About 60,000, according to Microsoft. That is roughly a quarter of its 223,000 full-time employees as of June 30, 2026.
Is the Microsoft Voluntary Exit Offer based on age or performance?
No. Microsoft says it has no age or tenure requirement and does not consider performance. Eligibility depends on country, job level (70 and below) and whether your team is participating.
When do Microsoft employees have to decide?
By the first week of December 2026. Employees who accept are expected to leave on December 31, 2026.
Are Microsoft sales and security teams included?
No. Reporting from GeekWire, The Verge and Reuters says the sales organization, marketing, commercial business and security teams are not participating.
Does this mean Microsoft will stop layoffs?
No. Microsoft says the Voluntary Exit Offer does not replace layoffs, which remain part of its approach depending on business conditions.
Sources: Microsoft statements and staff memo as reported by GeekWire, CNBC, The Verge and Reuters.
