- Microsoft offered voluntary buyouts to about 60,000 employees across the U.S., Canada, India, and the U.K., roughly 27% of its workforce.
- Eligible workers up to vice president level have until early December to decide, with departures effective Dec. 31.
- The buyouts follow April’s voluntary retirement program and July layoffs of 4,800 as AI-related capital spending is expected to top $50 billion.
On Oct. 26, 2026, Microsoft offered voluntary buyouts to around 60,000 employees in the U.S., Canada, India, and the U.K. That is about 27% of the company’s 223,000 workers, and the buyouts are the largest move so far in a year packed with job cuts.
On X, Watcher.Guru shared the $MSFT alert, describing the move as cost cutting amid AI adoption. Eligible employees at level 70 and below, including vice presidents, have until early December to decide, and those who accept will leave on Dec. 31.
The voluntary exit package mirrors standard severance, and teams including Xbox, Windows, Copilot, and Finance are participating. Data-center, sales, and marketing workers are excluded from this round.
Amy Coleman, Microsoft’s chief people officer, said in a note to staff: “The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter.”
However, the buyouts come as Microsoft carries a massive AI bill. Capital expenditures for the September quarter are expected to top $50 billion, up from $34.9 billion a year earlier, Microsoft said in July.
Consequently, free cash flow fell 23% year over year to $19.64 billion in the second quarter. Alphabet and Amazon both went negative.
A spokesperson told KUOW that AI is not driving the buyouts. Meanwhile, Microsoft has no set target, but a spokesperson pointed to other big tech companies with similar programs that saw a 3% to 5% uptake.
That implies 1,800 to 3,000 of the 60,000 eligible workers could leave by Dec. 31. Microsoft reports quarterly results on Wednesday, Oct. 28, and investors will see whether the layoffs can offset the cost of the AI race.
The company previously rolled out its first voluntary retirement program in April, with more than 30% of eligible workers accepting. Planned layoffs of 4,800 followed in July.
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