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

Microsoft on 26 October 2026 introduced a Voluntary Exit Offer for eligible staff in Canada, India, the UK and the US [1]. About 60,000 employees, roughly a quarter of its workforce, received the offer, according to The Seattle Times [2]. Microsoft's own post names no number and gives no AI-related reason [1].

What is Microsoft offering?

Microsoft introduced a time-limited Voluntary Exit Offer for eligible employees on 26 October 2026. Chief People Officer Amy Coleman announced it in a memo to staff, published on the official Microsoft blog [1]. The offer covers employees at level 70 and below in participating teams in Canada, India, the United Kingdom and the United States [1].

According to The Seattle Times, the offer is a standard severance package based on location, and employees have until early December to decide [2]. An internal Microsoft note seen by The Verge says the offer is not based on age, length of service or performance [3].

How many employees are eligible?

The Seattle Times reports that about 60,000 employees, roughly a quarter of Microsoft's workforce, received the offer. The company employs about 223,000 people worldwide, according to the paper [2]. The Verge reports the offer reaches up to 60,000 staff, and Ars Technica cites CNBC for the same figure [3][4].

Microsoft told The Seattle Times it expects only 3 to 5 percent of those eligible to accept. A spokesperson said that would mean fewer than 3,000 employees, based on comparable offers at other firms [2].

Which Microsoft teams are taking part?

Microsoft says some organizations are providing the offer and some are not, depending on business priorities, customer commitments and workforce needs [1]. Citing internal sources, The Verge reports that Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources are taking part [3].

Cloud + AI, Microsoft AI and the legal organization are only partially participating, according to The Verge and The Seattle Times [2][3]. Marketing, commercial business and security are not participating [2][3].

How does this fit Microsoft's earlier cuts?

Coleman wrote that the offer builds on lessons from this year's Voluntary Retirement Program [1]. That program was open to more than 8,700 US employees, and roughly a third accepted, The Seattle Times reports [2]. Microsoft took a 900 million dollar charge for those buyouts [2].

Microsoft did not give a direct reason for the new offer, Ars Technica notes [4]. The Seattle Times places it in a push to control labor costs while avoiding layoffs, as AI infrastructure spending grows [2]. According to the paper, Microsoft says it is not replacing workers with AI agents [2]. Microsoft reports quarterly results on Wednesday, 28 October [2].

Our read

Opinion: A buyout pitched to 60,000 people while expecting fewer than 3,000 takers looks less like a cost cut than a pressure valve: it lets people self-select out before any harder decisions. The interesting signal is which teams were excluded, with security and commercial sales protected, not the headline number.

What we could not verify

• How many employees are eligible; Microsoft's own announcement gives no number, and the figure of about 60,000 comes from press reports citing the company and internal documents.
• The exact severance terms; The Seattle Times describes a standard, location-based severance package, but Microsoft has not published the amounts.
• The exact list of participating teams; it comes from internal memos seen by The Verge and The Seattle Times, not from Microsoft's public post.
• Whether AI spending is a reason for the offer; Microsoft gave no direct reason, and any link to AI investment is reporters' context, not a company statement.