Microsoft is offering voluntary buyouts to around 60,000 employees

Microsoft is offering voluntary buyouts to around 60,000 employees, according to a memo sent on Monday by Amy Coleman, the chief people officer at Microsoft, which makes the Windows operating system and Office software. The voluntary exit offer is the tech giant's latest attempt to slim its workforce without another round of involuntary cuts.

After spending heavily on artificial intelligence infrastructure and reducing headcount this year, Microsoft is offering remaining employees a chance to leave, testing whether voluntary departures can cut costs. Eligible employees in the United States, Canada, India, and the United Kingdom at level 70 and below will receive an email with the terms of the offer.

Only some teams are participating, while sales organizations, some engineering groups, and some corporate functions are excluded. Around 60,000 employees, which is more than a quarter of the company's workforce, are eligible, and the terms will be similar to Microsoft's standard severance.

The United States severance package offered when Microsoft laid off employees earlier this year included a minimum of 60 days of base pay, with most employees receiving up to a maximum of 39 weeks of base pay based on seniority and tenure.

Eligible employees will have until early December to decide whether to take the offer and exit at the end of the year, according to Business Insider. The buyout offer follows Microsoft's voluntary retirement program, which offered a retirement buyout to about 9,000 eligible employees based on age and tenure earlier this year.

About one-third of eligible employees took that retirement buyout, allowing Microsoft to lay off a lower percentage of its workforce compared to last year. If your team is on the list, check your inbox before December.

Photo: Jelson25, Public domain, via Wikimedia Commons