Microsoft Offers Buyouts to 60,000 Staff in AI Shift
Microsoft is offering voluntary buyouts to about 60,000 staff in the US, Canada, UK and India as it trims costs and pours money into AI data centers and chips.
Microsoft is offering voluntary buyouts to around 60,000 employees, according to reports from Business Insider and Bloomberg on Monday, October 26. The move is the company's latest step to reshape its workforce while it pours billions of dollars into AI infrastructure.
Who is eligible
The offer, called the Voluntary Exit Offer, is open to eligible employees at level 70 and below, which reports describe as vice president level and below, on participating teams in the United States, Canada, the United Kingdom and India. Not every team is taking part. A source told Reuters the offer covers divisions including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, while marketing, commercial business and security are excluded. Other reports say some data center, sales and marketing staff are also left out. Microsoft describes the program as time-limited and voluntary, with financial support and career planning resources. A company spokesperson told Bloomberg the package is similar to a standard severance offer. Eligible employees were told they would get an email with their offer details within hours.
Why Microsoft is doing this now
The buyouts come as Microsoft spends heavily on AI: new data centers and the expensive chips needed to train and run advanced models. About 60,000 people is roughly 27 percent of Microsoft's workforce of around 223,000 full-time employees as of June 30, based on its annual report. Microsoft itself has not confirmed the 60,000 figure. It did not comment on the number when Reuters asked, and its own announcement gives no head count. Chief People Officer Amy Coleman announced the program in a note to employees on Monday. 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 added that the offer reflects how the company is evolving its approach to change, creating more flexibility and more ways for employees to shape their next chapter.
What came before
This is not Microsoft's first voluntary exit program this year. Earlier in 2026, the company offered buyouts to retirement-age employees, and more than 30 percent of the roughly 8,750 eligible workers accepted, according to TechCrunch. The new offer is far larger in scope, covering staff across career levels rather than only those near retirement.
What is still unclear
Microsoft has not said how long employees have to decide, how much the program will cost, or how many people it expects to accept. The company also has not said which teams beyond those named in reports are in or out. Those details will decide whether this becomes one of the largest voluntary workforce reductions in the company's history, or a smaller reshaping exercise.
Sources
Reuters via The Hindu BusinessLine - https://www.thehindubusinessline.com/info-tech/microsoft-offers-buyouts-to-around-60000-employees-report/article71628275.ece TechCrunch - https://techcrunch.com/2026/10/26/microsoft-offers-buyouts-to-around-60000-employees-reports-say/ AI Stock Wire - https://aistockwire.com/blog/microsoft-msft-voluntary-exit-offer-buyouts-60000-employees-october-2026