October 26, 2026 — Microsoft is offering voluntary buyouts to about 60,000 employees, roughly a quarter of its workforce, in its broadest exit offer yet. Why it matters: the company is holding down staff costs while it pours tens of billions of dollars into AI data centers — and it is choosing buyouts over another round of mass layoffs to do it.
What happened
Chief People Officer Amy Coleman announced the Voluntary Exit Offer in a memo to employees on Monday, which Microsoft also published on its website. The company confirmed the roughly 60,000 figure to GeekWire, TechCrunch and Barron’s. That is about 27% of Microsoft’s 223,000 full-time employees as of June 30 — a headcount already down from 228,000 a year earlier, before July’s layoffs.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” Coleman wrote in the memo.
Who is eligible — and who is not
The offer covers employees at level 70 and below in the United States, Canada, the U.K. and India. Level 70 reaches up to general managers and some vice president titles, though not corporate vice presidents. There is no age or tenure requirement, and performance is not a factor, the company said. According to Bloomberg reporting via TechCrunch, participating divisions include Xbox, Windows, Copilot and Finance. Workers in data centers, sales and marketing are excluded, as are some engineering groups — the teams building and selling the AI buildout are largely protected.
Terms match Microsoft’s standard severance: base pay based on tenure and level, continued stock vesting, healthcare coverage for a fixed period and career planning support. Eligible employees have until the first week of December to decide, with departures scheduled for December 31.
The pattern behind it
This is Microsoft’s third workforce move this year. In the spring it ran its first-ever voluntary retirement program: about 30% of the roughly 8,750 eligible U.S. employees took it, and the company later disclosed a $900 million charge for the program. In July it cut 4,800 jobs — about 2% of its workforce — followed by hundreds more in September. Microsoft told GeekWire it expects a much smaller share to accept this offer than took the retirement deal, said the offer is not a sign it needs fewer employees, and said it is not a replacement for layoffs, which remain on the table. The company reports earnings on Wednesday, with analysts watching its AI capital spending closely — Barron’s notes capital expenditures hit $41 billion in the fiscal fourth quarter, with about $51 billion expected for the fiscal first quarter.
Why it matters
For subscribers, this is the AI buildout’s bill arriving in a new form. The money for data centers has to come from somewhere, and Microsoft is now asking a quarter of its staff — including people on the Copilot team itself — whether they would like to leave with a package rather than wait for the next layoff round. The exclusions tell the real story: data centers, sales and core AI infrastructure are untouchable, while almost everything else is negotiable. Expect other big spenders in the AI race to copy the voluntary-exit playbook if Microsoft’s version trims costs without the headlines a mass layoff brings. Everything AI, tested — including what it costs the people building it.
Frequently asked questions
How many Microsoft employees are getting the buyout offer?
About 60,000 employees — roughly a quarter of Microsoft’s 223,000 full-time workforce — in the U.S., Canada, the U.K. and India.
Which Microsoft teams are included and excluded?
Xbox, Windows, Copilot and Finance are among the participating divisions, per Bloomberg reporting. Data centers, sales, marketing and some engineering groups are excluded.
What do employees who accept receive?
A package equivalent to Microsoft’s standard severance: base pay based on tenure and level, continued stock vesting, healthcare for a fixed period, and career planning resources.
When do employees have to decide?
By the first week of December, with departures scheduled for December 31. Microsoft says it expects a much smaller acceptance share than the roughly 30% who took its spring retirement offer.
Sources: GeekWire, TechCrunch, Barron’s, Bloomberg