Microsoft has announced a new voluntary buyout program, offering financial support and career planning resources to about 60,000 eligible employees across the United States, Canada, the United Kingdom, and India. This initiative represents more than a quarter of the company's global workforce, which stood at approximately 223,000 full-time employees as of June 30, 2026. The program, termed the Voluntary Exit Offer, is part of Microsoft's ongoing efforts to manage costs and adapt its workforce to evolving business needs, particularly in light of significant investments in artificial intelligence (AI) infrastructure and data centers.

Amy Coleman, Microsoft's EVP and Chief People Officer, stated that the program offers flexibility and allows employees considering a future outside the company to transition with support. The offer is open to eligible employees at level 70 and below, with participation varying by business unit priorities and needs. Some divisions, including sales, certain engineering groups, and corporate functions, are not participating in this offer. Divisions reportedly participating include those involved with AI experiences, Copilot, human resources, finance, Windows and Devices, and Xbox, though security, marketing, and commercial business teams are said to be unaffected in some reports.

The buyout package is equivalent to Microsoft's standard severance, including base pay based on tenure and level, continued stock vesting, a fixed period of healthcare coverage, and career transition services. This offer differs from the company's earlier voluntary retirement program introduced in April 2026, which had age and tenure requirements and included extended healthcare benefits. While Microsoft has not projected how many employees will accept the offer, it anticipates a smaller acceptance rate compared to the approximately 30% who took the voluntary retirement program earlier this year. Eligible employees have until early December to decide on the offer, with no current plans for further buyouts.

This voluntary buyout program follows several rounds of workforce adjustments by Microsoft in 2026, including approximately 4,800 job cuts in July and over 15,000 reductions in 2025. The tech industry as a whole has seen significant layoffs in 2026, with totals surpassing 135,000 across the sector, driven by factors including the increasing use of AI and the need for cost containment amidst substantial technological investments.