Microsoft is offering voluntary exit packages to up to 60,000 employees in the United States, United Kingdom, Canada and India, according to a memo from chief people officer Amy Coleman reported on Monday, October 26, 2026. The program lets the company shrink its workforce of roughly 223,000 without announcing another round of layoffs, at a time when it is pouring money into AI infrastructure.
What the offer includes
Coleman’s message describes a chance for staff to “leave Microsoft with financial support and career planning resources.” The Verge, which saw an internal note on the company’s HR site, says eligibility is not based on age, length of service or performance. The company calls the Voluntary Exit Offer “new for us” and says it may consider another one “where there is a business and workforce need.”
The Verge’s sources say teams eligible include AI experiences, Copilot, CoreAI, Windows and Devices, Xbox, finance and human resources. Microsoft’s cloud and AI group, MicrosoftAI and corporate, external and legal affairs are partly included. Marketing, the commercial business, discovery and quantum, and security teams are not part of the offer. Bloomberg, cited by The Guardian, also names datacenters among the excluded areas.
How it differs from earlier moves
This is separate from the voluntary retirement program announced earlier this year. That one was open to about 9,000 U.S. employees whose age and years of service added up to at least 70, The Verge reports; The Guardian describes it as aimed at about 7% of a then US workforce of around 125,000. The Verge also notes that Microsoft laid off 4,800 people months ago, mostly in Xbox and commercial sales, and cites a Fortune report that Xbox chief executive Asha Sharma is planning more layoffs.
The wider context
The Guardian frames the offer as part of a pattern: Meta said in April it would cut 10% of its staff, about 8,000 people; Amazon has made repeated retail cuts; and Oracle cut roughly 13% of its workforce, 21,000 jobs, in June. It adds that it is unclear whether such measures have yet produced the efficiency companies hope for, and that Meta has scaled back some of its plans.
There is also a productivity question. The Guardian points to a National Bureau of Economic Research working paper surveying 9,000 senior executives worldwide, in which 90% said AI had not yet raised productivity at their firms. Our report on Apollo’s finding that AI shows no payoff outside Big Tech covers similar skepticism.
Whether Microsoft is cutting because of AI itself, or to pay for it, is not stated in the memo as reported. The New York Times ties the program to the company’s AI spending in its headline, while the Guardian describes it as responding to rising AI use. We cannot say which is the primary driver.
What to watch next
- How many of the up-to-60,000 eligible employees actually accept.
- Whether Microsoft announces a second round, as its note allows.
- Microsoft’s next earnings commentary on headcount and capital spending.
- Further layoffs in Xbox, as reported by Fortune.
- Whether other big tech firms copy the voluntary-exit approach.
Key takeaways
- Microsoft is offering voluntary exits to up to 60,000 staff in four countries.
- The offer is not based on age, tenure or performance, and some teams are excluded.
- It comes after 4,800 layoffs and a separate retirement program this year.
- Other tech firms have also cut jobs while raising AI investment.
- Evidence on AI productivity gains remains mixed.
Frequently asked questions
Which countries does the Microsoft buyout cover?
The United States, United Kingdom, Canada and India, according to The Verge.
Is this a layoff?
No. It is a voluntary offer, which lets Microsoft reduce headcount without involuntary cuts, though participation is not guaranteed.
How big is Microsoft’s workforce?
Roughly 223,000 employees worldwide, per The Verge and The Guardian.
