Microsoft offers voluntary buyouts to about 60,000 employees, a quarter of its staff

Microsoft offered voluntary buyouts on Oct 26 to about 60,000 employees, roughly a quarter of its workforce. Chief People Officer Amy Coleman announced the Voluntary Exit Offer in a memo to staff that the company also posted on its official blog. Microsoft had 223,000 full-time employees as of June 30, according to its annual filing.

The offer comes as Microsoft spends heavily on AI data centers and chips. Reuters reported that the company has forecast $175 billion in capital expenditures for calendar 2026. Microsoft shares rose about 1% on Oct 26.

Who is eligible

• The offer covers participating teams in the US, Canada, the UK and India.
• It is open to employees at internal level 70 and below, which includes general managers and some vice presidents but not corporate vice presidents.
• There is no age, tenure or performance requirement.
• Business leaders decide whether their groups take part, and the sales organization, some engineering groups and some corporate functions are not participating.
• Teams in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices are eligible, a person familiar with the matter told Reuters.

The terms

Microsoft said the package matches its standard severance: base pay tied to tenure and level, continued stock vesting, healthcare coverage for a fixed period and career transition services. It does not include the extended healthcare offered in the company's spring retirement program. In Microsoft's layoffs earlier in 2026, US severance paid at least 60 days and, for most employees, up to 39 weeks of base pay, Business Insider reported.

Microsoft did not project how many employees will accept, but told GeekWire it expects a much smaller share than took the earlier retirement offer. The company said the offer does not replace layoffs and that there are no plans for another buyout at this time.

Earlier cuts

Microsoft ran its first voluntary retirement program in the spring, open to roughly 8,750 US employees based on age and tenure, and about 30% accepted. It cut 4,800 jobs in July, about 2% of its global workforce, and hundreds more in September. The company cut more than 15,000 jobs in 2025.

What comes next

• Microsoft reports fiscal 2027 first-quarter results after the US market closes on Oct 28, with a call at 5:30 p.m. Eastern.
• Eligible employees have until the first week of December to decide on the offer.
• Employees who accept leave Microsoft at the end of 2026.