Microsoft offers voluntary buyouts to 25% of global workforce

Microsoft is offering voluntary buyouts to as many as 25 percent of its employees in the United States, Canada, India and the United Kingdom, with the first offers being sent out today. The program targets staff across engineering, sales and support functions, and gives eligible workers a lump‑sum payment to leave the company immediately.

The move comes after a year of cost‑cutting at the tech giant. Microsoft posted slower revenue growth in its cloud division and warned of weaker enterprise spending as the global economy cooled. Earlier in the year the company announced a 10,000‑person layoff, roughly 5 percent of its workforce, and has since been trimming hiring. Executives say the buyout is a “pre‑emptive” step to avoid larger, involuntary cuts and to give workers a choice as the firm reshapes its priorities around artificial‑intelligence services and subscription revenue.

Under the offer, employees can receive up to six months of salary plus additional benefits, depending on tenure and role. The company says the program is voluntary and that those who stay will see a reallocation of resources toward high‑growth areas such as AI‑powered cloud tools. Analysts note the buyouts could cost Microsoft between $2 billion and $3 billion, but they view the expense as a way to tighten the balance sheet before the next fiscal quarter. Some workers have expressed relief at having an option, while others worry about morale and the loss of institutional knowledge.

The buyout window will remain open for three weeks, after which the company will assess how many positions have been vacated. If the target is not met, Microsoft may resort to additional layoffs later in the year. Investors are watching closely, as the outcome will affect the firm’s earnings guidance and its ability to compete with rivals that are also scaling back staff. The broader tech sector, still reeling from a wave of reductions since 2023, sees Microsoft’s latest step as a signal that even the most profitable players must tighten their belts.