Microsoft looks to shed nearly 60,000 employees through new ‘Voluntary Exit’ offer 

After fewer-than-expected take-ups for the earlier announced voluntary retirement scheme, Microsoft is now looking to buy out 60,000 employees under its new voluntary exit offer.

In an office memo, the company’s head of people said: “This offer will be available to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below. This is a time-limited, voluntary program that gives those who are eligible the opportunity to leave Microsoft with financial support and career planning resources.”

According to Fortune, the company’s spokesperson confirmed that employees who take up the latest exit option would get a standard severance package, though the terms would vary depending on the region and the number of years of employment with the company.

US accounts for 54% of Microsoft’s workforce

According to the company’s last disclosure, as of June 30, 2026, it had approximately 223,000 people on a full-time basis—121,000 in the U.S. and 102,000 outside the U.S.

Of Microsoft’s total workforce, 89,000 were in operations, including product support and consulting services, datacentre operations, and manufacturing and distribution; 77,000 were in product research and development; 43,000 were in sales and marketing; and 14,000 were in general and administration.

Amy Coleman, Executive Vice President and Chief People Officer, told employees that the new exit offer gives a “new choice to make that transition now with support” for those looking to leave the organisation.

“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter. This builds on what we learned earlier this year through the Voluntary Retirement Program,” she wrote in her employee memo.

Earlier in July this year, the company had said that it was doing away with 4,800 employees, or 2.1% of its workforce, affecting those in its commercial business and Xbox segments.

Microsoft said the move was aligned with the company’s focus on investments and changing priorities in the AI era.

This also comes at a time when the company has come under scathing attack from the Trump administration. In September, Microsoft was one of the U.S. firms barred from applying to the PERM program and is facing an ongoing Department of Labor investigation.