Microsoft Offers 60,000 Employees Voluntary Buyouts Amid AI Spending

REDMOND, Washington, October 27, 2026. Microsoft has opened voluntary buyout offers to approximately 60,000 employees across four countries, giving eligible workers the option to leave with financial support.

The announcement comes as the technology company manages costs while investing heavily in artificial intelligence infrastructure.

The programme, announced on October 26, covers selected employees in the United States, Canada, India and the United Kingdom. According to Ars Technica, the eligible group represents roughly a quarter of Microsoft’s global workforce of approximately 223,000 employees.

Who Qualifies for Microsoft’s Voluntary Buyouts?

The Voluntary Exit Offer applies to employees at internal level 70 and below in participating divisions. Eligible teams include parts of Xbox, Windows + Devices, human resources, finance and Copilot, while certain security, marketing and data centre operations are excluded.

Microsoft Chief People Officer Amy Coleman said participating organisations were selected “based on each business’s priorities, customer commitments and workforce needs.”

The company is offering eligible employees financial support and career planning resources. Participation is voluntary, meaning the 60,000 eligible workers are not automatically losing their jobs.

Microsoft has not announced a target number of departures.

What Severance Packages Will Employees Receive?

According to Business Insider, which reviewed individual offers, severance packages vary according to employee level, location and length of service. US employees at level 64 and below were offered one week of base pay for every six months of employment.

Employees at levels 65 to 67 were offered two weeks of base pay for every six months of service. Standard severance for employees at level 67 and below is capped at 39 weeks of base pay, while the standard offer for level 68 includes 12 months of salary.

The packages also include continued regular stock vesting and health insurance. Eligible employees have until early December to decide whether to accept, with departures scheduled for December 31, 2026.

Microsoft’s Earlier Buyouts And Rising AI Costs

The latest programme follows an earlier voluntary retirement offer in April 2026, when approximately 8,750 US employees were eligible. More than 30% of those workers accepted, according to company figures reported by Human Resources Director.

The expanded programme comes as Microsoft faces pressure to balance operating expenses with spending on AI infrastructure and data centres. However, the company’s October announcement did not explicitly identify AI investment as the reason for the buyouts.

Microsoft has also reduced jobs elsewhere in its business during 2026. As The Guardian reported, the current offer includes several major product divisions, while other teams are excluded based on their staffing requirements.