Microsoft offers voluntary buyouts to about 60,000 staff in four countries

The offer

Microsoft has launched a voluntary exit offer for about 60,000 employees in the United States, Canada, India and the United Kingdom. The group told AFP on Monday, 26 October, that the offer covers only certain divisions and is one more way of adjusting headcount to changing needs. Eligibility extends to vice presidents and staff below that level on selected teams. Benefits are reported to be similar to a standard severance package. Bloomberg, citing a company spokesperson, reported that the cuts could reach up to a quarter of the workforce worldwide. Microsoft is scheduled to present its results on 28 October.

Who qualifies

The offer does not reach every team. Staff in data center operations and in sales and marketing are excluded, according to reports. People familiar with the situation said employees in AI experiences, Copilot, CoreAI, Windows and Devices, Xbox, finance and human resources teams are eligible. Cloud and AI, MicrosoftAI, and corporate, external and legal affairs teams are only partially participating. Marketing, commercial business, discovery and quantum, and security teams are not taking part, those people said. The offer also does not target commercial sales teams.

Background to the cuts

The offer follows a first voluntary retirement program that Microsoft announced in April, which about 7% of US employees could access. Reports differ on the size of that eligible pool, with one citing roughly 8,750 workers and another around 9,000. More than 30% of the roughly 8,750 eligible workers accepted, one report says. The new offer comes months after Microsoft laid off 4,800 employees, a move that mainly hit its Xbox and commercial sales teams. A Fortune report cited in the coverage says Xbox CEO Asha Sharma is planning new rounds of layoffs.

Workforce size

According to its fiscal 2026 results, which ended in June, Microsoft had about 223,000 full-time employees worldwide. Of those, 121,000 worked in the United States and 102,000 in other countries. The company is raising its data center investment to meet demand for AI services from customers such as Anthropic and OpenAI, and that spending has put pressure on its finances.

Worldwide total223,000

United States121,000

Other countries102,000

Worldwide total

223000 employees

United States

121000 employees

Other countries

102000 employees

Data from the article text

Company messaging

In a note to staff on Monday, chief people officer Amy Coleman described the offer as a new option for employees. She wrote:

“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support.”

She also said the company would learn from the program and keep offering other paths, including new skills and internal opportunities. In a separate memo line she wrote:

“The Voluntary Exit Offer is new for us. We'll learn from it.”

Coleman added that there is no one-size-fits-all approach for every team or employee. Microsoft's results are due on 28 October, two days after the offer became public.