Microsoft has initiated a voluntary buyout program targeting approximately 60,000 employees, a number that constitutes roughly 25% of its total global workforce. This latest development follows recent rounds of layoffs within its Xbox division and a renewed push for employees to return to the office.
Reports indicate that the voluntary exit offer is being extended to staff in the United States, Canada, India, and the United Kingdom, though not all teams are eligible. The impact on the Xbox division remains unclear, with executive Matt Booty previously stating that the gaming division was still undergoing efforts to reduce its headcount by a total of 3,200 employees. Further layoffs at Xbox were reportedly planned for November and January.
Amy Coleman, Microsoft's chief people officer, described the Voluntary Exit Offer in a memo to staff as an evolution in the company's approach to change, aiming to create more flexibility and opportunities for employees to shape their future careers. She noted that this program builds upon lessons learned from an earlier Voluntary Retirement Program, where approximately 9,000 employees were offered buyouts, with about a third accepting.
While the specific drivers for this widespread voluntary buyout program have not been officially detailed, reports suggest it may be linked to significant investments in AI data centers. Microsoft is also currently navigating a boycott called for by the BDS movement due to its reported connections with the Israeli military.