Microsoft sent shockwaves through the tech world on October 26, 2026, announcing a sweeping voluntary buyout program targeting approximately 60,000 employees — more than a quarter of its total global workforce of 223,000 people. The move is designed to contain costs as the tech giant dramatically ramps up spending on artificial intelligence infrastructure, with plans to invest $190 billion in capital expenditure in 2026 alone.
Chief People Officer Amy Coleman sent a memo to staff Monday outlining the “Voluntary Exit Offer,” available to employees at experience level 70 and below across the United States, Canada, India, and the United Kingdom. Divisions including Xbox, Windows, Copilot, AI Experiences, Finance, and Human Resources are participating, while marketing, commercial business, and security teams are excluded.
The package is equivalent to Microsoft’s standard severance. Eligible employees have until early December to decide, with departures scheduled for December 31, 2026. The program follows a smaller voluntary retirement offer earlier this year and a series of forced layoffs — including 15,000 jobs cut last year and another 4,800 in July 2026. Analysts see the move as Microsoft’s effort to rebalance its workforce for an AI-first future without resorting to another round of involuntary layoffs.
Source: CNBC – Microsoft Offers Voluntary Buyouts