Microsoft is trying to cull its workforce by dangling an offer that might be hard for some employees to refuse. This week, the tech giant announced voluntary buyouts for 60,000 people, which is more than a quarter of its workforce.
Leadership has framed this as a way for employees to have more agency over their future at the company. “The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter,” chief people officer Amy Coleman wrote in a blog post. For employees who were already entertaining the idea of an outside opportunity, she said this could present “a new choice to make that transition now with support.”
It’s not the first time Microsoft has offered buyouts to trim its head count. Earlier this year, the company used another euphemism to nudge thousands of employees to leave. The “Voluntary Retirement Program” was intended for older, more senior employees who may have been planning to retire soon; according to The Wall Street Journal, Microsoft extended offers to about 8,600 employees and more than 30% accepted.
Voluntary buyouts have become an attractive option for companies looking to cut jobs and reduce costs without resorting to explicit layoffs, which draw headlines and heightened scrutiny. Mass layoffs can also significantly impact morale, something major employers like Microsoft are all too familiar with. Just this year, Microsoft faced its share of criticism for eliminating 3,200 jobs in its Xbox division, targeting some veteran staffers who had spent decades there; the company also made thousands of cuts across other departments.
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