Microsoft offers voluntary buyouts to around 60,000 staff

What happened

Microsoft is offering buyouts to around 60,000 employees, and the company confirmed the move to TechCrunch on Monday 26 October 2026 ^[1]. The offer is described as part of Microsoft's latest effort to cut costs and rework its workforce for the AI age ^[1]. The news was first reported by Business Insider ^[1].

Chief people officer Amy Coleman sent employees a note about what the company calls a Voluntary Exit Offer, which was also published on Microsoft's website ^[1]. Employees at vice president level and below, on select teams in the United States, Canada, India and the United Kingdom, are eligible ^[1]. Eligible staff were due to receive an email on Monday with a link to their personal offer details, and the terms are said to be similar to Microsoft's standard severance ^[1].

Who is in and who is out

Bloomberg reported that divisions including Xbox, Windows, Copilot and Finance are taking part, while some employees, such as those working in data centres, sales and marketing, are excluded ^[1]. The Guardian, citing Bloomberg, also listed cybersecurity as an excluded area ^[2].

In her statement, Coleman said the offer "gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support" ^[1]. The note adds that the offer is new for Microsoft, and that the company will "learn from it" ^[1].

Why it matters

A buyout lets a company shrink its headcount without the more disruptive route of mass layoffs ^[1]. It is also not Microsoft's first attempt this year. TechCrunch reports that an earlier buyout aimed at retirement-age staff drew acceptances from more than 30% of the roughly 8,750 eligible workers ^[1]. The Guardian puts that April offer at about 7% of the US workforce, then around 125,000 people, and notes the global workforce is about 223,000 ^[2]. TechCrunch gives the same 223,000 headcount as of the end of June ^[1].

Microsoft is not alone. The Guardian lists Meta's plan to cut 10% of its staff in April, repeated cuts at Amazon, and Oracle's reduction of nearly 13% of its workforce in June, all linked in the reporting to AI and the investment it demands ^[2]. The Guardian also points out that it is unclear whether these measures have yet translated into greater efficiency, and that some companies, Meta among them, have scaled back their plans ^[2]. It cites a National Bureau of Economic Research working paper in which 90% of around 9,000 senior executives surveyed said AI had not yet produced greater productivity at their companies ^[2].

What it means for businesses

For leaders, the story is a reminder that AI spending and workforce planning are now tied together in public. A voluntary scheme is gentler than layoffs, but it still removes experience from teams, and the company itself says it has no one-size-fits-all approach for every team ^[1]. Smaller firms watching big-tech moves should be wary of copying headline cuts before they can show that AI tools are actually delivering gains.

For employees at affected firms, the practical points are to read the terms carefully, understand which team is covered, and weigh the support offered against what comes next. Microsoft says it will keep helping people build new skills and find opportunities across the company ^[1]. Microsoft did not respond to the Guardian's request for further details about the offer ^[2].

Source: TechCrunch — Microsoft offers buyouts to around 60,000 employees