Microsoft offers 60,000 employees money to resign, but expects only 3,000 to take the deal

Microsoft has offered voluntary buyouts to around 60,000 employees as the company looks to reduce costs and reshape its operations amid its growing focus on artificial intelligence (AI). In an internal memo, Chief People Officer Amy Coleman announced the Voluntary Exit Offer, giving eligible employees the option to leave with financial support. However, according to a new report, Microsoft expects only 3,000 or fewer employees to take the deal, receive a payout and leave the company.The voluntary exit offer was announced on Monday, October 26, in an internal memo from Coleman. The programme is open to eligible employees in India, the US, the UK and Canada, offering them financial support and career-planning resources if they choose to leave. The offer covers around 60,000 employees, representing more than a quarter of Microsoft's workforce.However, according to a new report by Business Insider, CFO Amy Hood expects “very few people” to accept the offer, citing the growth opportunities available within the company. A Microsoft spokesperson confirmed to the publication that the company expects 3,000 or fewer employees to take the deal.“I know there have been some questions on the rationale behind the voluntary exit offer that we announced this week,” Hood wrote in an internal memo to employees. “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.” Who is eligible for Microsoft's buyout offer?Microsoft's Voluntary Exit Offer is open to eligible employees at level 70 and below in the US, Canada, India and the UK. Employees who accept the offer will receive financial support and career-planning resources to help them transition out of the company, according to Microsoft's official announcement. Bloomberg reported that the benefits would be similar to those offered under a standard severance package. Do note that at Microsoft, level 70 refers to an internal job grade, not the employee's age or years of experience. Microsoft uses a numbered job-level system to distinguish roles based on factors such as seniority, scope and responsibilities.Meanwhile, the exit programme is available only to employees in participating teams, meaning not everyone at the company is eligible. Divisions including Xbox, Windows, Copilot and finance are participating in the offer. However, some employees working in areas such as data centres, sales, marketing, cybersecurity and quantum computing are reportedly excluded.Amy Coleman said the offer gives employees who want to leave Microsoft a chance to do so with financial support. It also gives teams more flexibility to adjust their workforce as business needs change.Microsoft expects fewer employees to take the offerEarlier this year, Microsoft offered a voluntary retirement package to retirement-age employees in the US. More than 30 per cent of the roughly 8,750 employees eligible for the offer accepted it. This also helped the company reduce the number of workers affected by subsequent layoffs.This time, however, Microsoft expects far fewer employees to take the buyout offer, according to Business Insider. A Microsoft spokesperson told the publication that 3,000 or fewer employees are expected to accept it, which would amount to around 5 per cent of those eligible.Employees have until early December to decide whether they want to take the offer, with those who accept expected to leave the company by the end of the year. The payout will depend on factors such as their job level and how long they have worked at Microsoft, according to reports.- Ends