Key Points
- Microsoft offers voluntary exit to 60,000 employees across India, US, UK and Canada
- CFO Amy Hood expects most staff to reject offer citing internal growth opportunities
- Eligible employees have until early December to decide with departure by year end
Microsoft’s chief financial officer Amy Hood has said she expects most of the 60,000 employees eligible for the company’s voluntary exit programme to reject the offer and remain with the company, according to an internal memo seen by Business Insider.
The Redmond-headquartered technology company on Monday introduced the voluntary exit scheme for eligible employees in India, the US, the UK and Canada. The programme offers financial assistance and career-planning support to those who choose to leave.
Hood addressed employee questions about the purpose of the buyout programme in the internal memo. “I know there have been some questions on the rationale behind the voluntary exit offer that we announced this week,” Hood wrote. “Our intent is to offer employees agency if they choose to leave the company on their own terms. We expect very few people to select this offer because of the growth opportunities here at Microsoft.”
The voluntary exit programme comes as Microsoft continues to spend billions of dollars on artificial intelligence infrastructure while simultaneously reducing its workforce. By allowing eligible employees to leave voluntarily, the company is offering an alternative to compulsory layoffs while attempting to manage staffing costs.
Eligibility and terms
Microsoft’s chief people officer Amy Coleman shared details of the programme in a separate memo sent to employees on Monday. “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,” Coleman wrote, according to the Business Insider report.
The offer is available to eligible employees at internal level 70 or below in the US, Canada, India and the UK. However, some sales teams, engineering roles and certain corporate functions are not included in the programme, the company said. Microsoft said around 60,000 employees qualify for the scheme.
The severance package is expected to be similar to the company’s standard severance benefits, according to the report. Employees have until early December to decide whether to accept the offer. Those who opt in are expected to leave by the end of the year.
By the numbers
Key figures from this story- 60,000
- employees eligible for voluntary exit
- 39 weeks
- maximum base pay in severance package
- 4,800
- jobs cut in July workforce reduction
The severance amount will depend on an employee’s role and years of service. According to Business Insider, Microsoft’s severance package during layoffs earlier this year included at least 60 days of base pay, with employees remaining on the payroll during that period. Depending on seniority and length of service, many employees were eligible for up to 39 weeks of base pay.
Offer letters reviewed by news outlet showed that employees at internal levels 64 and below received one week of base pay for every six months of service. Those at levels 65 to 67 were offered two weeks of base pay for every six months of service.
Earlier workforce changes
The current programme follows a voluntary retirement scheme Microsoft introduced earlier this year for senior employees at director level and below. In July, the company said more than 30 per cent of the 8,750 employees eligible for that programme had chosen to participate.
That same month, Microsoft announced plans to cut 4,800 jobs, equivalent to about 2.1 per cent of its global workforce. The cuts affected several teams, including a significant number of employees in its Xbox gaming business.
Your Questions, Answered
Who is eligible for Microsoft's voluntary exit offer?
Employees at internal level 70 or below in the US, Canada, India and the UK are eligible. Some sales teams, engineering roles and certain corporate functions are excluded. Around 60,000 employees qualify for the programme.
What severance will Microsoft employees receive?
The amount depends on role and years of service. Employees at levels 64 and below receive one week of base pay for every six months of service. Those at levels 65 to 67 get two weeks of base pay for every six months. Many are eligible for up to 39 weeks of base pay.
What is the deadline for Microsoft's voluntary exit offer?
Employees have until early December to decide whether to accept the offer. Those who opt in are expected to leave the company by the end of the year.
Why is Microsoft offering voluntary exits?
The programme comes as Microsoft spends heavily on AI infrastructure while reducing its workforce. It offers an alternative to compulsory layoffs and gives employees more control over their career decisions, according to the company.
