Microsoft has launched a Voluntary Exit Offer (VEO) for roughly 60,000 employees, about a quarter of its global workforce across participating teams in the US, Canada, the UK and India, the company confirmed on 26 October 2026.
Amy Coleman, Microsoft's executive vice president and chief people officer, announced the scheme in a memo published on the company's official blog. The offer is open to staff at internal level 70 and below, which covers general managers and some vice presidents but not corporate vice presidents. Eligibility within that band was determined by the heads of each business unit, based on priorities, customer commitments and workforce needs.
In India, Microsoft will provide one month of base salary for each completed year of service, along with health insurance and career-transition support, the company said, according to Business Standard. The package also includes continued stock vesting for a period that varies by tenure.
In the US, severance terms differ by grade: employees at level 64 and below receive one week of base pay for every six months of service, while those at levels 65 to 67 receive two weeks per six months, capped at 39 weeks of base pay. Level 68 employees are offered 12 months of salary, India Today reported, citing a Business Insider review of offer documents.
Eligible employees must decide by early December; those who accept will leave on 31 December 2026.
The move follows Microsoft's first-ever voluntary retirement programme, introduced in April for around 7% of US employees, of whom about 30% accepted. A forced round of 4,800 job cuts came in July. Microsoft, which reported a total workforce of approximately 223,000 as of June 2026, has been investing heavily in AI infrastructure, putting pressure on its finances, CNBC reported.
Microsoft told that AI is not the driving factor behind the exit programme. Divisions including Xbox, Windows, Copilot and Finance are participating, according to Bloomberg, while employees in data centres, sales and marketing are excluded.
Source : Microsoft Official Blog
