Microsoft has announced a voluntary buyout program targeting approximately 60,000 employees, which represents about 27% of its global workforce of 223,000 people. The initiative, revealed on October 26, 2026, aims to manage costs as the company increases capital expenditure on artificial intelligence infrastructure, projected to reach $175 billion in 2026.
The offer is available to staff at level 70 and below in the US, Canada, the UK, and India. Eligible employees will receive a severance package including pay based on tenure, continued stock vesting, healthcare coverage, and career transition support. Marketing, commercial business, security, and certain data center roles are excluded from the program.
Participants must decide by early December, with an exit date scheduled for December 31, 2026. This program is significantly larger than previous efforts, such as the voluntary retirement scheme earlier in 2026 that targeted 8,750 US employees. In July 2026, the company also eliminated 4,800 roles through layoffs.
Following the announcement, Microsoft shares rose by 1%. The move precedes the company's first-quarter earnings report. Chief People Officer Amy Coleman detailed the terms in an internal memo, noting that the program is intended to balance operational expenses against the ongoing expansion of AI capabilities.
