USBrief

We don’t bury the lede.

Back to Technology briefing Technology

Microsoft offers buyouts to 60,000 workers, about a quarter of staff

Microsoft on Oct. 26 opened a Voluntary Exit Offer to about 60,000 employees in the U.S., Canada, the U.K. and India, roughly 27% of its 223,000-person workforce. Those who accept leave Dec. 31 with a package the company says matches its standard severance, as it pours money into AI data centers.

By US Brief desk · Updated 2026-10-26T13:13:00-07:00

AI-assisted · US Brief desk · Sources listed below

A glass-and-concrete office building with a cantilevered roof and a Microsoft logo sign on a low wall in front, under a clear blue sky

What happened

Microsoft on Monday introduced a time-limited Voluntary Exit Offer for eligible employees "in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below," Chief People Officer Amy Coleman wrote in a memo the company posted publicly. About 60,000 people are eligible, Microsoft told GeekWire, or roughly 27% of the 223,000 full-time employees it counted on June 30. Eligible workers were to get their offer details by email within hours.

Why it matters

Microsoft is spending heavily on AI data centers for customers including OpenAI and Anthropic, and CNBC reported that its free cash flow fell 23% from a year earlier in the latest quarter, to $19.64 billion. The offer follows 4,800 layoffs in July, and Microsoft told GeekWire buyouts are "not a replacement for layoffs," which remain possible. Shares rose about 1% Monday, Investopedia reported, two days before the company reports quarterly earnings on Wednesday.

More context

The deal: The package is equivalent to Microsoft's standard severance, including base pay tied to tenure and level, continued stock vesting, health coverage for a fixed period and career transition services, the company told GeekWire. Employees have until early December to decide, and those who accept leave Dec. 31, CNBC reported. Age, tenure and performance are not factors.

Who's in and who's out: Each business leader decides whether a team takes part. Teams in AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources are eligible, while marketing, commercial business, discovery and quantum, and security are not, The Verge and Reuters reported, citing people familiar with the plan. Level 70 reaches general managers and some vice presidents, but not corporate vice presidents, according to GeekWire.

Then vs. now: Microsoft's first buyout, a Voluntary Retirement Program this spring, went to about 9,000 U.S. employees, or 7% of its U.S. staff, at senior director (level 67) and below whose age plus years of service reached a set threshold, and it came with extended health coverage. More than 30% of those eligible took it. The new offer covers about six times as many people, spans four countries, reaches higher job levels, has no age or tenure test and does not include the extended health benefit, according to GeekWire and The Verge.

What's still unknown: How many workers will accept. Microsoft gave no target and told GeekWire it expects a much smaller share than the roughly 30% who took the retirement offer. The company has not said how much the program will cost or whether more layoffs will follow, and said it may consider future exit offers "where there is a business and workforce need," according to a note The Verge reviewed.

6 listed sources

References listed by US Brief; a source count is not a verification score.

Editorial sourcing notes

The roughly 60,000 eligibility figure comes from Microsoft's statement to GeekWire; CNBC and Reuters attributed it to a person familiar with the matter. Microsoft has not said how many workers it expects to accept. Photos are file images of Microsoft's Redmond campus, not from this announcement.

Like US Brief? You can support it with a tip.