Microsoft has introduced a voluntary exit programme for eligible employees across several departments, potentially opening the door for around 60,000 workers to leave the technology giant with financial assistance and career transition support.

The announcement, made by Chief People Officer Amy Coleman on October 26, comes amid growing concerns about artificial intelligence reshaping employment. It also draws attention to comments by Microsoft co-founder Bill Gates, who has warned against a corporate approach to AI summed up as “hire the robot, fire the human”.

The Voluntary Exit Offer (VEO) will be available to eligible employees in participating organisations, including divisions such as Xbox, Windows, Copilot and finance. According to the reported eligibility criteria, employees at level 70 and below in Canada, India, the United Kingdom and the United States can participate.

The programme is voluntary and time-limited. It gives eligible employees the option to leave Microsoft in exchange for financial support and career planning resources.

Who is eligible, and how much do senior employees earn?

The offer reportedly covers approximately 60,000 employees, equivalent to around 27% of Microsoft’s workforce.

As of June 30, 2026, Microsoft employed 223,000 people worldwide, including 121,000 in the United States and 102,000 in other countries.

Microsoft uses an internal level system to classify employees according to their roles and seniority. A 2025 Business Insider report said partners typically begin at level 68, while distinguished engineers can be at level 70.

According to the report, compensation for level 70 employees can include salaries of up to $400,000, initial stock awards worth as much as $1.9 million and annual stock awards of up to $1.476 million. Actual compensation varies depending on the employee’s role, experience and other factors.

What is the deadline for accepting the offer?

According to a Press Trust of India (PTI) report, eligible employees in India have until December 1 to decide whether to accept the offer.

The reported terms resemble a conventional severance package, potentially including one month’s base salary for every completed year of service, health insurance and career transition assistance. The precise benefits and eligibility conditions will depend on the programme’s applicable terms.

Unlike a compulsory redundancy exercise, a voluntary exit programme allows eligible employees to decide whether to accept the offer and leave the organisation.

Strong financial growth, rising AI investments

Microsoft’s move comes despite strong financial performance and continued expansion in its cloud and AI businesses.

For the financial year ended June 30, 2026, the company reportedly recorded revenue of $331.8 billion, an increase of 18% over the previous year. Operating income rose 21% to $155.2 billion.

Microsoft Cloud revenue grew 27% to $214.4 billion, while Azure revenue increased 41%, crossing the $100 billion mark for the first time, according to the figures cited in the report.

The company also expanded its infrastructure to support growing demand for cloud computing and AI services, adding 88 data centres during the year.

These investments underline the scale of Microsoft’s ambitions in AI, even as the technology raises questions about the future composition of its workforce.

Voluntary exit does not mean compulsory layoffs

Microsoft has described the VEO as a time-limited programme intended to give eligible employees greater flexibility in deciding their next steps.

In her blog post, Coleman said the initiative would provide financial support and career planning resources to employees who choose to leave.

“The Voluntary Exit Offer is new for us. We’ll learn from it,” she said.

Coleman added that Microsoft would continue helping employees develop new skills, concentrate on priority work and explore other opportunities within the company where appropriate. She also acknowledged that different teams and employees have different needs, requiring more than one approach.

The programme should therefore be distinguished from compulsory layoffs, although its introduction has renewed discussion about how major technology companies are adapting their workforces as AI capabilities expand.

Previous job cuts at Microsoft

Microsoft has already undertaken significant workforce changes in recent years.

In July, the company reportedly cut 4,800 jobs, or approximately 2.1% of its global workforce. The reductions were aimed at restructuring its Xbox gaming business, with plans to divest up to five studios as Microsoft sought to improve returns after years of substantial investment in the division.

The latest voluntary exit offer represents a different approach, giving eligible employees the option to leave rather than requiring them to do so.

Bill Gates warns against replacing workers with AI

The announcement comes against the backdrop of a broader debate over whether AI will create new opportunities or displace large numbers of workers.

In an interview published by The Observer on Sunday, Microsoft co-founder Bill Gates criticised what he described as a flawed corporate incentive structure.

“The incentive structure is wrong. It’s ‘hire the robot, fire the human and don’t look back’,” Gates said.

He has described the AI era as an evolutionary turning point in which machines could surpass humans in an expanding range of intellectual and practical capabilities. Gates expects AI to take over many tasks currently performed by people, with white-collar occupations facing disruption before the effects extend further into blue-collar jobs and physical labour.

His concerns extend beyond employment itself. Gates has warned that widespread job displacement could erode the tax base that funds public services and social safety nets, even if overall economic prosperity increases.

To address this challenge, he has proposed considering a tax on AI use and higher taxes on billionaires, arguing that the gains from automation should help support society as a whole.

Gates has also pointed to his own tax contributions, saying he has paid $14 billion in taxes and would have been willing to pay $40 billion.

Microsoft’s voluntary exit programme does not, by itself, establish that AI is responsible for the company’s workforce decision. Nevertheless, its introduction highlights a central question facing the technology industry: as companies invest heavily in automation and AI, how will they balance productivity gains with the livelihoods and long-term prospects of their employees?