Microsoft Corporation Offers Buyouts to 60,000 Employees
Microsoft Corporation launched a voluntary exit program for 60,000 employees to reduce costs and offset heavy investments in AI infrastructure.
Microsoft Corporation announced a Voluntary Exit Offer on October 26, 2026, providing buyouts to approximately 60,000 eligible employees. The initiative targets staff at level 70 and below across the United States, Canada, India, and the United Kingdom, representing roughly 27% of the company's 223,000-person workforce.
The program aims to increase capital efficiency and reduce costs as the company manages significant spending on AI infrastructure. Eligible employees in teams such as Xbox, Windows + Devices, and Human Resources have until early December to accept the offer, with departures set for December 31. Sales, marketing, and certain engineering teams are excluded from the program.
Severance terms align with standard packages, offering between 60 days and 39 weeks of base pay based on seniority. This move follows a smaller voluntary retirement offer earlier this year and a layoff of 4,800 employees in July. Amy Coleman, Executive Vice President and Chief People Officer, stated that the offer provides employees considering a future outside the company a choice to make that transition with support.