Microsoft has launched a Voluntary Exit Offer (VEO) program targeting approximately 60,000 employees, which accounts for nearly 27% of its global workforce. The initiative is designed to reduce operating costs as the company scales its investments in artificial intelligence infrastructure.
The program is available to staff at internal level 70 and below in the United States, Canada, India, and the United Kingdom. Eligibility depends on specific business priorities and department requirements, with certain roles in sales, marketing, and data centers excluded from the offer.
Employees who accept the buyout will receive compensation packages including tenure-based payments, continued stock vesting, and career transition services. Eligible staff have until the first week of December to make their decision regarding the voluntary departure.
This move follows a series of workforce reductions, including 15,000 layoffs in 2025 and additional cuts of 4,800 positions in July 2026. Microsoft reported 223,000 full-time employees as of June 30, 2026, and maintains that layoffs remain a potential tool for future workforce management.
The company is currently managing significant capital expenditures, which reached $41 billion in the fiscal fourth quarter ending June 30, 2026. Microsoft projects total capital spending for the 2026 calendar year to reach approximately $175 billion to support its AI and cloud operations.
