Microsoft has offered voluntary buyouts to about 60,000 employees, more than a quarter of its global workforce, as the technology giant looks to contain costs and fund its massive AI investments.
Staff in India are among those who could be covered.
What Is Microsoft's Voluntary Exit Offer?
Announced on Monday, the Voluntary Exit Offer (VEO) is a time-limited, voluntary programme that lets eligible employees leave the company with financial support and career-planning resources.
Chief People Officer Amy Coleman said in a staff memo that it gives those considering a future outside Microsoft a way to make the move now, with support. Eligible employees were to receive details by email within hours.
What Does It Mean for India?
India is one of four countries where the offer is available, along with Canada, the UK and the US. Employees at level 70 and below in participating teams can apply.
Microsoft has not said how many staff in India qualify. Participation varies by team, depending on each business's priorities, customer commitments and workforce needs.
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Who Could Be Affected?
According to a source familiar with the matter, eligible staff include those working in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, Reuters reported.
Which Teams Are Excluded?
Marketing, the commercial business and security units will not be part of the offer, the source told the agency.
How Much Money Could Employees Receive?
Microsoft has not disclosed the payout under the VEO. For context, the voluntary retirement programme it offered US staff earlier this year gave eligible employees between eight and 39 weeks of base salary, depending on level and length of service.
It is not confirmed whether the new offer follows the same formula, or what terms apply to employees in India.
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Why Is Microsoft Doing This?
Like other tech giants, Microsoft is spending hundreds of billions of dollars on AI data centres and chips, drawing investor scrutiny over whether the returns will justify the cost.
Earlier this year, it offered voluntary buyouts to about 7% of its US workforce, or roughly 9,000 employees. In July, it announced 4,800 job cuts, about 2.1% of its global workforce, while overhauling its Xbox gaming business and divesting up to five studios.
Shares of Microsoft, which have risen about 10% this year, were up about 1% on Monday.
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