Microsoft offers early exit to 27% of global workforce - Bangkok Post
Microsoft has launched a voluntary severance programme covering approximately 60,000 employees — roughly 27% of its global workforce — offering buyout packages and severance benefits following organisational restructuring and heavy capital expenditure on artificial intelligence.
The Voluntary Exit Offer (VEO) programme, as the company calls it, applies to staff in four countries: the United States, Canada, India and the United Kingdom. Eligible personnel include employees up to level 70 — encompassing certain management roles — within designated divisions such as Windows, Xbox, Copilot, AI, Finance and Human Resources. However, data centre operations, sales, marketing and selected security teams are excluded from the scheme.
The structural realignment comes as Microsoft directs massive investment into AI systems, data centre construction, and compute infrastructure, forcing the technology giant to curb operating costs and realign headcount with its strategic priorities. Microsoft said the initiative aims to provide support for staff considering career transitions or new opportunities outside the company.
Compensation packages will vary based on job tier and tenure. Certain US-based staff are eligible for up to 39 weeks — about nine months — of severance pay, while level 68 employees could receive up to 12 months’ pay alongside extended healthcare benefits, conditional stock vesting and career transition assistance.
Eligible employees must make their decision by early December 2026, with departing staff set to leave the firm by the end of the year. The move follows an earlier voluntary retirement initiative offered to 8,750 US employees — it had a take-up rate above 30% — and a separate reduction of 4,800 roles announced last July.
Company projections indicate that the 60,000 figure represents the pool of eligible staff rather than planned job cuts. Microsoft expects no more than 3,000 employees, or approximately 5% of those eligible, to accept the buyout offer.
The rollout highlights how even major technology firms benefiting from the AI surge are compelled to streamline operations and strictly manage expenditures. Nevertheless, industry observers note it remains unclear to what extent AI automation will replace human roles across the sector in the long term.
