# Microsoft offers severance to about 60,000 employees

> The voluntary program reaches roughly a quarter of Microsoft’s workforce, while several teams tied to AI infrastructure and security are excluded.

Oossa · 2026-10-31 · https://oossa.com/en/microsoft-offers-severance-to-about-60-000-employees

Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce. Chief People Officer Amy Coleman described the packages in a memo as “another way to adapt their workforce to changing needs.” A company spokesperson said Microsoft wants employees who are committed to tackling its toughest problems.

The program covers employees in the United States, Canada, India and the United Kingdom, at vice president level or below. Xbox, Windows, Copilot and Finance employees are included. Employees in data centers, sales, cybersecurity and quantum computing are excluded. The Decoder describes those excluded areas as mostly important to Microsoft’s AI strategy.

The offer is voluntary, so it is not the same as an announcement that 60,000 jobs will be cut. Microsoft has not said how many employees it expects to accept, or how much the packages will cost. The figure refers to the number of employees the program covers, not a confirmed number of departures.

## A second workforce offer this year

This is Microsoft’s second voluntary buyout program in 2026. In May, it offered buyouts to 8,750 employees in the United States. The company also cut 4,800 jobs in July, according to The Decoder. The new offer therefore comes after both a previous departure program and job cuts, but the published details do not say whether the efforts are connected.

Microsoft still has about 223,000 employees, roughly the same number as in 2022, despite strong revenue growth. At the same time, Chief Financial Officer Amy Hood says the company plans to spend about $170 billion on AI infrastructure in 2026, slightly below its original $175 billion plan. The contrast is notable: Microsoft is offering departures across a large part of its workforce while excluding some teams connected to its AI plans. The company has not explained how many people it hopes will leave or how the offer fits its longer-term staffing plans.

## The facts

- The voluntary severance program covers about 60,000 employees, roughly a quarter of Microsoft’s workforce.
- Eligible staff are in the U.S., Canada, India and the U.K., at vice president level or below.
- Xbox, Windows, Copilot and Finance are included; data centers, sales, cybersecurity and quantum computing are excluded.
- Microsoft offered buyouts to 8,750 U.S. employees in May 2026 and cut 4,800 jobs in July, according to The Decoder.

## Why it matters

For Microsoft employees in the four eligible countries, this creates an option to leave with a severance package, but the company has not disclosed the terms or how many people may take it. Employees in several data-center, cybersecurity and other excluded teams are not covered, so the offer does not apply uniformly across the workforce.

## Sources & references

1. [Microsoft offers a quarter of its workforce voluntary severance while shielding AI-critical teams](https://the-decoder.com/microsoft-offers-a-quarter-of-its-workforce-voluntary-severance-while-shielding-ai-critical-teams/) – The Decoder, 2026-10-31

Last updated: 2026-10-31