Microsoft is offering a Voluntary Exit Offer (VEO) to roughly 60,000 employees, about a quarter of its workforce, in its second buyout program this year. The offer, announced in a memo from Chief People Officer Amy Coleman, covers staff at level 70 and below in participating teams across the US, Canada, the UK, and India. That cutoff reaches general managers and some vice presidents, but not corporate vice presidents, and age, tenure, or performance don't factor in.
The package is roughly equivalent to standard severance, with base pay tied to tenure and level, continued stock vesting, healthcare for a fixed period, and career transition support. Employees have until the first week of December to decide. Coleman says the offer gives eligible employees "a new choice to make that transition now with support." Not every team is participating, however. Sales and some engineering and corporate groups are sitting it out, and it's unclear whether Xbox is included, a division whose ongoing cuts Satya Nadella recently called "great to see."
Microsoft says the program isn't a sign it needs fewer people, nor a replacement for layoffs, which it hasn't ruled out. The spring Voluntary Retirement Program saw about 30% of roughly 8,750 eligible US employees accept, and Coleman later said it reduced the size of the July layoffs, which hit around 4,800 workers. Microsoft reports quarterly earnings on October 28, which could shed some light on what the offer will cost. The company expects far fewer takers this time, so if uptake comes in low, it wouldn't be surprising to see more cuts down the line, on top of the 3,200 Xbox job cuts already planned through the 2027 fiscal year.
Source: TechPowerUp News · Summarized by HeadlinesBriefing