Microsoft offers voluntary exit package to Indian staff amid workforce reshuffle

Microsoft has rolled out a voluntary exit offer (VEO) that makes about 60,000 employees globally eligible for a severance package that includes one month of base salary for each year of service, health insurance and career-transition assistance. In India, where the firm employs around 23,000 people, eligible staff must decide by Dec. 1, with the last working day set for Dec. 31.

"Microsoft continues to invest in India’s talent and technology ecosystem and is backing the country’s AI ambitions with US$20.5 billion in committed investment between 2025 and 2029 across cloud and AI infrastructure, skilling and operations. We are also on track to fulfil our commitment of equipping 20 million people across India with AI skills by 2030," a Microsoft spokesperson told The Indian Express.

Company officials described the VEO as a time-limited, voluntary option for employees considering their next career step, noting that future staffing needs will be guided by business priorities. The package for senior staff includes a severance payment based on level and tenure, six months of stock vesting after separation, six months of health coverage and several months of transition support. Those who accept the offer will be ineligible to rejoin Microsoft for two years.

Employees expressed mixed reactions. A senior U.S.-based worker, who was not planning to retire, said the decision pits a known financial payout against uncertainty about future roles and the difficulty of finding new employment in a competitive market. The employee also highlighted the potential loss of employer-provided health insurance, which could cost a family of four about $4,000 a month.

In contrast, a 23-year-old Azure engineer in Hyderabad, who has worked at Microsoft for nearly three years, said they are satisfied with their current team and see little reason to leave, despite estimating a payout of roughly Rs 11 lakh. The engineer noted that some colleagues view the offer as a voluntary choice rather than pressure to resign.

The rollout occurs as AI tools reshape work expectations within Microsoft, with senior staff noting that generative AI has accelerated tasks and increased productivity, potentially allowing teams to accomplish more with fewer people. For employees on H-1B visas, the timing adds complexity, as recent U.S. policy changes have suspended Microsoft and other firms from the PERM labour-certification programme, affecting pathways to permanent residency.

Overall, the VEO provides a structured exit option while the company reaffirms its commitment to growth and AI development in India.