Microsoft Offers Voluntary Exit Packages to Employees in India Amid AI-Led Restructuring

Impact on Microsoft’s Indian Workforce

Microsoft has extended its Voluntary Exit Offer (VEO) to eligible employees in India as part of a global programme covering approximately 60,000 employees. The company employs around 23,000 people in India, but it has not disclosed how many will qualify for the scheme.

The offer applies to eligible employees at internal level 70 and below in participating teams across India, the United States, the United Kingdom and Canada. In India, employees working in Copilot, AI experiences, Windows and Devices, Xbox, finance and human resources could be among those affected. Participation will depend on individual business requirements and workforce priorities.

Eligible Indian employees are expected to receive severance benefits broadly similar to standard arrangements, including one month’s base salary for every completed year of service, health insurance and career transition assistance. They will reportedly have until December 1 to accept the offer, with departures expected by the end of December.

Microsoft has stated that its investment plans in India remain unchanged. The company has committed $20.5 billion between 2025 and 2029 towards cloud and AI infrastructure, skill development and operations. It also aims to equip 20 million people in India with AI skills by 2030.

AI-Led Job Disruptions Across the Technology Sector

Microsoft’s decision comes amid wider restructuring across the global technology industry. Companies are increasingly adopting AI tools to automate tasks, improve productivity and redirect resources towards emerging technologies. However, Microsoft has not explicitly stated that AI replacing workers is the reason for its latest voluntary exit programme.

Several companies have already reduced their workforces amid this transition. In February 2026, financial technology company Block announced plans to cut more than 4,000 jobs, citing improvements in AI capabilities. Salesforce also reduced its customer support workforce as AI agents increasingly handled customer queries.

In India, home interiors platform Livspace laid off around 1,000 employees in February 2026 while shifting towards an AI-led operating model. Tata Consultancy Services announced plans in July 2025 to reduce its workforce by approximately 12,000 employees, primarily affecting middle and senior management.

These developments highlight the changing nature of technology-sector employment. While AI adoption is creating demand for specialised skills, it is also raising concerns about conventional software development, customer support and other white-collar roles. The challenge for technology professionals will be to adapt to evolving skill requirements as companies restructure their operations.