Tue 27 Oct 2026 / 10:36 ET
Kernel
AI 3 min read

Microsoft offers voluntary buyouts to about 60,000 employees

About 60,000 Microsoft workers can opt into a time-limited exit program, but the figure is eligibility, not a confirmed cut.

Felix Aranda

By Felix Aranda / Silicon Editor

Microsoft offers voluntary buyouts to about 60,000 employees
img: The Verge

Microsoft buyouts 60000 employees refers to a voluntary exit offer, not 60,000 confirmed job losses. Microsoft said Oct. 26 that about 60,000 employees in participating teams can consider the time-limited program in the United States, Canada, India and the United Kingdom.

The company said eligible workers at level 70 and below would receive program details. Employees may choose whether to accept the offer; Microsoft has not announced a required reduction of 60,000 positions.

Microsoft employed 223,000 full-time people worldwide as of June 30, according to its annual filing. The eligible group therefore amounts to roughly 27% of that workforce, although eligibility does not predict how many people will leave. CNBC reported, citing a person familiar with the plan, that Microsoft has no target number of participants.

Is Microsoft laying off 60,000 employees?

No. The announced program is voluntary and covers workers who meet its geographic, team and job-level requirements. It gives eligible employees an option to depart with financial support and career-planning resources, according to Microsoft Chief People Officer Amy Coleman.

Coleman said the offer was intended for employees considering a future outside Microsoft and would give participating organizations another way to adjust their workforce as needs change. That is Microsoft’s stated rationale. Reuters reported that the company is also seeking to control costs while funding large AI investments.

Who can take Microsoft’s voluntary exit offer?

Microsoft said the offer applies only to eligible staff in participating teams across the four named countries and at level 70 or below. Reuters, citing a person familiar with the matter, reported that eligible groups include AI Experiences, Copilot, finance, human resources, Xbox, and Windows + Devices.

That same source said marketing, commercial business and security are excluded. Team-level participation is not uniform, and CNBC reported that some marketing, sales and engineering teams had opted out of the initiative.

CNBC also reported that eligible employees were expected to decide in early December and that those taking the package would leave Dec. 31, citing a person familiar with the plan. Microsoft described the offer as time-limited but did not publicly set out a target number of departures in the announcement reported by Reuters.

How does this differ from Microsoft’s earlier workforce actions?

This is a broader program than Microsoft’s earlier voluntary retirement offer. Reuters reported that the earlier U.S.-only program covered about 9,000 employees. Microsoft said the new exit offer draws on lessons from that retirement program.

It is also separate from Microsoft’s July announcement of 4,800 job cuts, Reuters reported. Those were layoffs, while the current program asks eligible employees whether they want to leave under the offered terms. The distinction is more than corporate vocabulary: a buyout is an offer workers can decline, and its eventual headcount effect depends on how many accept.

Microsoft’s announcement arrives amid heavy spending on AI data centers and chips. Reuters reported that the company forecast $175 billion in capital expenditures for calendar 2026, while cautioning is warranted in treating workforce moves as proof of any single motive beyond the company’s own explanation and the reporting on cost containment.

This story draws on original reporting from The Verge.

More AI/

view all ↗