Microsoft Offers Buyouts to 60,000 Workers

Microsoft on Oct. 26 offered voluntary buyouts to roughly 60,000 employees, about a quarter of its workforce, in a memo from Chief People Officer Amy Coleman. The "Voluntary Exit Offer" covers staff at level 70 and below, up to the vice president level, on participating teams in the United States, Canada, India and the United Kingdom.

Key takeaways

• About 60,000 of Microsoft's roughly 223,000 employees are eligible, according to the company's confirmation to several outlets.
• The time-limited offer includes financial support and career planning; a spokesperson said terms are comparable to standard severance.
• It lands two days before Microsoft reports fiscal first-quarter results on Oct. 28.

What is Microsoft's Voluntary Exit Offer?

Coleman, Microsoft's executive vice president and chief people officer, sent the note to employees on Monday and published an edited version on the Official Microsoft Blog. She described the program as time-limited and voluntary, with financial support and career planning resources for those who leave.

"The Voluntary Exit Offer is new for us," Coleman wrote. "We'll learn from it." She added that "there is no one-size-fits-all approach for every team or every employee." Eligible workers were to receive an email with a link to their offer details within hours.

Not every group is taking part. "Participation varies based on each business's priorities, customer commitments and workforce needs," the memo said. Bloomberg reported that Xbox, Windows, Copilot and Finance are among the participating divisions, while some data center, sales and marketing staff are excluded.

Microsoft buyout terms and deadline

A Microsoft spokesperson told KUOW the package is comparable to the company's standard severance, which varies by market. Neither the memo nor the company's public statements gave dollar amounts or an acceptance deadline.

The same spokesperson told KUOW that AI is not driving the buyouts. TechCrunch, citing Microsoft, said the program offers a way to reduce headcount without the disruption of mass layoffs.

Context: a year of Microsoft workforce cuts

Microsoft's latest annual report says it had about 223,000 full-time employees as of June 30, 2026: 121,000 in the U.S. and 102,000 internationally. Based on that figure, 60,000 eligible workers equal about 27% of staff.

The new offer follows a Voluntary Retirement Program earlier this year, which Coleman said provided lessons for the VEO. Bloomberg reported that about 8,750 retirement-age employees were eligible for that program and more than 30% accepted. In July, Microsoft cut about 4,800 jobs, including roughly 1,600 in Xbox, according to GeekWire's reporting cited by Gizmodo.

The cuts come as spending on AI infrastructure climbs. CBS News reported that Chief Financial Officer Amy Hood said on the July earnings call that Microsoft expects to spend $175 billion on AI infrastructure, including data centers, in 2026.

What's next

Microsoft will publish fiscal 2027 first-quarter results after the market closes on Oct. 28, with an earnings webcast at 2:30 p.m. Pacific time. Investors are likely to press executives on how many workers take the offer, how much it will cost and whether further layoffs could follow for teams that miss their targets.

FAQ

Who can take Microsoft's buyout?
Employees at level 70 and below, up to vice president, on participating teams in the U.S., Canada, India and the U.K. Each business decides whether it takes part.

Is this a layoff?
No. The program is voluntary. Microsoft has not said how many acceptances it expects or whether layoffs could follow.

What do departing employees get?
Financial support and career planning resources. A spokesperson said terms are comparable to standard severance, which varies by country.

References

• Introducing a Voluntary Exit Offer — The Official Microsoft Blog (Oct. 26, 2026)
• Microsoft Corp. Form 10-K for fiscal year ended June 30, 2026 — U.S. Securities and Exchange Commission
• Microsoft announces quarterly earnings release date — Microsoft via Finviz
• Microsoft offers voluntary buyouts to a quarter of its workforce — KUOW (Oct. 26, 2026)
• Microsoft offers buyouts to around 60,000 employees — TechCrunch (Oct. 26, 2026)
• Microsoft offers buyouts to 60,000 workers as it pours money into AI — CBS News (Oct. 26, 2026)
• Microsoft offers buyouts to nearly a quarter of its workforce — Gizmodo (Oct. 2026)