Microsoft layoffs: Tech giant offers voluntary buyouts to 60,000 employees, how much severance will Indians get?

Microsoft employees in India could receive severance packages worth several months of salary as the technology giant rolls out a voluntary exit programme covering around 60,000 workers across four countries. The offer comes months after the company laid off 4,800 employees in July 2026, adding to concerns about job security amid continuing changes in the technology industry. However, the latest move is different from conventional layoffs, as eligible employees can choose to leave the company in exchange for financial compensation and career transition assistance.

The Voluntary Exit Offer (VEO) covers employees in India, the United States, the United Kingdom and Canada. Microsoft is offering the programme to eligible staff at internal level 70 and below, although participation depends on their business division. The company has not confirmed that all 60,000 eligible employees will leave, and the number should not be interpreted as a confirmed job-cut target.

Microsoft layoffs: How much severance will Indians get?

For employees in India, the reported severance formula offers one month's base salary for every completed year of service. The package also includes health insurance and career transition support, giving departing employees some financial assistance as they look for their next opportunity.

Consider an employee who earns Rs 2 lakh a month and has completed 10 years at Microsoft. Under the reported formula, the employee could receive approximately Rs 20 lakh in severance pay, before accounting for any applicable deductions or other terms. Someone with five completed years of service and the same monthly base salary could receive around Rs 10 lakh.

The final payout will depend on the employee's salary, completed years of service and the terms of the individual offer. Employees should therefore check their official communication rather than assume that the illustrative calculations represent a guaranteed amount.

The arrangement differs in the US, where compensation reportedly varies according to an employee's internal level. Those at level 64 and below receive one week's base salary for every six months of service, while employees at levels 65 to 67 receive two weeks' salary for the same period. Severance is generally capped at 39 weeks.

The differences in payout structures highlight how the programme is tailored to local employment arrangements. For Indian employees considering the offer, the amount of severance could be a major factor in deciding whether to leave, particularly for those with long service histories.

Microsoft has also included career transition assistance, which could help employees prepare for their next roles. However, accepting a voluntary exit means giving up their existing position, making it important to weigh the immediate financial benefit against future employment prospects.

Eligibility for voluntary payouts

The programme is open to employees at internal level 70 and below in India, the US, the UK and Canada. However, meeting the level and location requirements does not automatically qualify someone for the offer. Eligibility also depends on whether their business division is participating.

Teams covered by the programme reportedly include Copilot, AI Experiences, Windows + Devices, Xbox, finance and human resources. Employees working in sales, marketing, commercial business and security are reportedly excluded.

Another notable feature is the absence of an age or minimum tenure requirement. Unlike Microsoft's earlier retirement-related programme, the latest offer does not require employees to reach a particular age or complete a minimum number of years at the company. Performance ratings are also not a deciding factor in eligibility.

Eligible employees in India must make their decision by December 1, 2026, with departures expected by the end of December. Microsoft is expected to send individual offer details to employees by email, outlining the terms applicable to them.

Microsoft Chief People Officer Amy Coleman has said the programme is intended to give employees greater flexibility while allowing the company to adapt to changing business needs.

While the offer provides workers with a choice, it also comes against the backdrop of continuing changes across the technology sector. Companies are reassessing staffing requirements as their businesses evolve, including through greater investment in artificial intelligence.