Microsoft Won’t Call 60,000 Job Cuts In US, India Layoffs, Labels It ‘Voluntary Exit Program’
SEATTLE, WA – Microsoft has launched a voluntary exit program for employees in India, the United States, Canada and the United Kingdom as the technology giant seeks to balance rising artificial intelligence spending with workforce costs. The program could cover around 60,000 employees, according to media reports, although the company has not confirmed the figure.
Microsoft announced the Voluntary Exit Offer (VEO) on October 26 in a message to employees from Amy Coleman, the company’s executive vice president and chief people officer, which was published on its official blog.
“This offer will be available to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below,” Coleman wrote.
“This is a time-limited, voluntary program that gives those who are eligible the opportunity to leave Microsoft with financial support and career planning resources,” she said.
CNBC, citing a person familiar with the matter, reported that around 60,000 employees could qualify, representing about 27 per cent of Microsoft’s workforce of approximately 223,000. The company has not disclosed how many eligible employees are based in India, where it has large engineering and support operations.
The offer is not available to every team. Coleman said participation would depend on business priorities, customer commitments and workforce requirements.
The Verge, citing people familiar with the situation, reported that participating teams include Copilot, CoreAI, Windows and Devices, Xbox, finance and human resources. Marketing, commercial business, quantum and security teams are not included.
According to CNBC, employees must decide whether to accept the offer in December, with those who opt in scheduled to leave the company on December 31.
The program follows Microsoft’s Voluntary Retirement Program earlier this year, which was limited to a smaller group of long-serving employees in the United States.
The offer comes months after Microsoft announced plans in July to lay off about 4,800 employees, mainly in its Xbox and commercial sales teams, according to media reports.
Microsoft has been increasing spending on data centers to meet demand for AI computing, including cloud capacity supplied to OpenAI, Anthropic and other companies. Major US technology firms are expanding their AI infrastructure while seeking to control operating costs. Although Microsoft has not explicitly linked the voluntary exit offer to its AI spending, the program comes amid this broader push to manage costs.
India’s inclusion makes the program significant for the company’s workforce in the country, which hosts one of Microsoft’s largest employee bases outside the United States.
The move also comes amid uncertainty for Indian technology professionals working in the US. Microsoft’s PERM labor certification filings were among those suspended by the US Department of Labor on October 8, and the company has publicly defended its use of the H-1B visa program. Coleman’s announcement did not mention visa holders, and it remains unclear how the voluntary exit offer would apply to employees in the US on work visas. (IANS)
