Microsoft has announced a voluntary exit offer to around 60,000 employees, about a quarter of its global workforce of 223,000, as the technology giant continues to cut costs while pouring money into artificial intelligence, according to CNBC and the AFP news agency.

The offer covers eligible staff in the United States, Canada, India and the United Kingdom, up to and including vice president level, though not corporate vice presidents. Eligible teams reportedly include Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources, while security, marketing and quantum computing groups are excluded. Employees in data centres and sales roles are also generally not covered, and individual business leaders decide whether their teams participate.

A second buyout round in one year

This is Microsoft’s second voluntary departure programme this year. In spring 2026, the company ran its first-ever voluntary retirement scheme, limited to US senior-director-level employees and below who met age and tenure thresholds. About 8,750 employees were eligible, and roughly 30% accepted. Microsoft has said it expects a much smaller share of staff to take up the new, broader offer.

The package matches Microsoft’s standard severance terms plus career-transition support, according to Yahoo Finance. The company has stressed that the offer is not a replacement for layoffs, which remain part of its strategy depending on business conditions.

“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter,” said Amy Coleman, Executive Vice President and Chief People Officer at Microsoft.

“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” Coleman added, according to Yahoo Finance.

Part of a longer wave of cuts

The move follows a year of repeated workforce reductions at Microsoft. The company cut more than 15,000 jobs in 2025 amid cost-cutting tied to its heavy investment in AI infrastructure. In July 2026, it cut 4,800 jobs globally, including about 3,200 at Xbox as part of a restructuring of the gaming division, followed by a further 268 Xbox job cuts in September, according to The Next Web, citing The Verge.

The buyout offer arrives two days ahead of Microsoft’s quarterly earnings report, due on October 28, 2026, as investors watch how the company balances its AI spending against its headcount.

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