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Microsoft is offering buyouts. Here’s what to check before you take one

TechCity cover: 5 checks before you take a Microsoft buyout, with Microsoft's logo

Microsoft is offering some employees in the US, Canada, India and the UK money to leave the company voluntarily. The Microsoft buyouts are reportedly open to about 60,000 people. Here is what Microsoft has confirmed, what has only been reported, and five things to check if you are ever offered a buyout.

The short version

Microsoft announced a “Voluntary Exit Offer” on Oct. 26 for eligible staff on some teams in four countries.

  1. Microsoft says the offer is time-limited and open to employees at level 70 and below on participating teams in the US, Canada, India and the UK.
  2. Microsoft has not published the payout terms, the deadline or how many people are eligible.
  3. Several outlets report about 60,000 eligible employees and a decision deadline in early December.
  4. In the US, COBRA can let you keep your work health plan for a limited time, but you may pay up to 102% of its cost.
  5. Get the terms in writing and check health cover, unvested stock and unemployment rules before you sign.

What Microsoft announced

In a post on its official blog, Microsoft shared a note to staff from Amy Coleman, its executive vice president and chief people officer. It describes a “time-limited, voluntary” offer with “financial support and career planning resources” for eligible employees.

The offer covers employees at level 70 and below on participating teams in Canada, India, the UK and the US. Not every part of the company is taking part. Microsoft said some organizations are offering it and some are not, and eligible employees would get an email with their own offer details.

In plain terms: a buyout is your choice, but the company sets the clock. The time to check the details is before the deadline, not after you have signed.

What has been reported but not confirmed

Microsoft’s post does not give a number. Business Insider and CNBC reported that about 60,000 employees are eligible. Axios reported that employees have until early December to decide and that those who accept would leave at the end of the year. Microsoft has not confirmed those figures publicly.

This follows a smaller voluntary retirement offer earlier in 2026, which Microsoft says shaped this one, and job cuts in past years such as the 2025 layoffs.

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Microsoft buyouts: 5 things to check before you take one

  1. Get every term in writing. How much you get, how it is paid, your last day and the deadline to decide. A number someone tells you in a meeting is not an offer.
  2. Price your health insurance. In the US, a law called COBRA can let you keep your work health plan for a limited time after you leave, but the US Department of Labor says you may have to pay the full premium, up to 102% of the plan’s cost. Ask for that monthly number before you decide.
  3. Ask about unvested stock and bonuses. Stock awards that have not vested yet are often a big part of tech pay. Ask in writing what happens to them if you leave.
  4. Check unemployment rules first. Each US state decides who gets unemployment benefits. Ask your state’s unemployment office whether taking a voluntary package affects your claim.
  5. Read what you sign away. Severance agreements can include a promise not to sue the company. If the money is large or the terms are unclear, an hour with an employment lawyer is cheap insurance.

Outside the US, the rules on notice, severance and benefits are different in Canada, India and the UK, so check your own country’s rules and your contract.

Why is Microsoft doing this?

Microsoft says the offer gives employees thinking about a future outside the company “a new choice” and gives teams “another way to adapt their workforce to changing needs.” CNBC reported that Microsoft’s heavy spending on AI data centers is putting pressure on its costs. Microsoft has not said whether layoffs will follow if too few people accept.

What to watch next

Watch for the decision deadline that has been reported for early December, and for whether other big tech companies copy the approach. If you are weighing your next move, our look at the tech jobs still growing in 2026 is a good place to start.

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Olawale Adeyina Avatar