Microsoft offers voluntary separation to about 60,000 employees
Microsoft offered roughly 60,000 employees the option of voluntary separation as part of cost-cutting measures while continuing to make large investments in artificial intelligence.
On Monday, Microsoft said it has offered a package enabling about 60,000 employees — roughly a quarter of its workforce — to voluntarily end their employment as part of cost-cutting efforts while it intensifies investments in artificial intelligence.
A company spokesperson said the offer is aimed at employees in specific teams in the United States, Canada, India and the United Kingdom, and applies to roles below the vice-president level, with exceptions for certain categories of workers including some data center staff and the sales and marketing teams.
Executive Vice President and head of HR Amy Coleman said in an internal memo that the voluntary separation initiative is part of the company’s evolving approach to managing change, and gives employees more flexibility and broader options to shape the next stage of their careers.
This is the second time this year the company has offered employees the option of voluntary separation. In April, Microsoft made early retirement available to about 7 percent of its U.S. workforce.
About 30 percent of eligible employees chose to take the voluntary retirement plan, according to media reports.
Microsoft had 223,000 employees worldwide at the end of June, down from 228,000 at the end of 2025, according to filings the company submitted to regulators.
The company expects to announce its quarterly financial results later this week.
