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Microsoft Buyout: Who Qualifies And How Much Will Employees Get? Eligibility, Severance Pay Explained

Microsoft has launched a voluntary buyout programme for eligible employees in India, the US, the UK and Canada, offering severance pay based on salary and years of service, along with career transition support, as the company continues its restructuring efforts following earlier layoffs.

Microsoft Buyout: Who Qualifies And How Much Will Employees Get? Eligibility, Severance Pay Explained
The buyout compensation varies depending on employees' location, salary, seniority and years of service.

Microsoft has announced a voluntary buyout programme covering approximately 60,000 employees across four countries, including India. The move comes months after the technology giant laid off 4,800 workers in July 2026. Eligible employees can leave the company with financial compensation and career transition support.

Who Qualifies for Microsoft's Buyout?

According to Microsoft's official announcement, the Voluntary Exit Offer (VEO) applies to employees at internal level 70 and below in India, the United States, the United Kingdom and Canada.

However, not everyone meeting these criteria qualifies. Eligibility depends on whether an employee's business division participates in the programme.

Employees in Copilot, AI Experiences, Windows + Devices, Xbox, finance and human resources are among those covered. Sales, marketing, commercial business and security teams are reportedly excluded.

Unlike Microsoft's earlier retirement programme, the latest offer has no age or minimum tenure requirement. Employee performance also does not determine eligibility.

How Much Will Microsoft Employees Receive?

The buyout compensation varies depending on employees' location, salary, seniority and years of service.

In the United States, employees at level 64 and below reportedly receive one week's base salary for every six months of service. Those at levels 65 to 67 receive two weeks' salary for the same period, with severance generally capped at 39 weeks.

For Indian employees, the package reportedly includes one month's base salary for every completed year of service, alongside health insurance and career transition assistance.

For example, an Indian employee earning Rs 2 lakh monthly with 10 completed years of service could receive approximately Rs 20 lakh in severance.

What Is the Deadline?

Eligible Indian employees must decide by December 1, 2026, with departures expected by December-end. Employees will receive individual offer details through email.

Microsoft Chief People Officer Amy Coleman said the programme aims to provide employees with greater flexibility while helping the company adapt to changing business needs.

Importantly, the 60,000 figure represents eligible employees, not confirmed job cuts. Microsoft has also indicated that future layoffs remain possible depending on business requirements.

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