Microsoft is offering voluntary buyouts to a large part of its workforce. According to a memo from chief people officer Amy Coleman sent on Monday 26 October, a new Voluntary Exit Offer is open to eligible employees in participating teams in Canada, India, the United Kingdom and the United States, at level 70 and below.

What was announced

Business Insider reported that a Microsoft spokesperson said around 60,000 employees will be eligible. The Verge put the figure at up to 60,000. CNBC, citing a person familiar with the matter for the 60,000 figure, said the effort affects about 27% of Microsoft's total workforce of 223,000. CNBC's article also says Microsoft "said Monday" that it is offering the buyouts.

Business Insider's account says level 70 includes senior leaders at the company. According to the memo as Business Insider published it, the offer is "time-limited" and voluntary, and it gives those who are eligible "the opportunity to leave Microsoft with financial support and career planning resources". Eligible employees were told they would get an email with a link to their offer details "within the next few hours".

Coleman wrote that the 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." She added: "The Voluntary Exit Offer is new for us. We'll learn from it."

Which teams are in

The memo says some organisations are providing the offer and some are not, and that participation "varies based on each business's priorities, customer commitments, and workforce needs." CNBC, citing a person familiar with the matter, says some marketing, sales and engineering teams have decided not to participate.

The Verge, citing sources familiar with the situation, says staff in AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources are eligible. It also notes that the offer does not target Microsoft's commercial sales teams.

Timing and terms

CNBC's source said employees must decide in December and that those taking part will leave on 31 December. Business Insider reported that eligible employees have until early December to decide and would exit at the end of the year.

On pay, a Microsoft spokesperson told Business Insider the terms will be similar to Microsoft's standard severance. Business Insider described the US package from earlier layoffs this year as a minimum of 60 days of base pay, during which employees remain on the payroll, and, for most employees, up to 39 weeks of base pay based on seniority and tenure. It said that, according to offers it had reviewed, employees at levels 64 and below received one week of base pay per six months of service, and those at levels 65 to 67 two weeks. Those figures describe the earlier layoff package. Business Insider's report does not itemise the new offer's terms.

According to a note on Microsoft's internal HRweb site seen by The Verge, the offer is not based on age, length of service or performance.

How it differs from April

Microsoft's first voluntary retirement programme came earlier this year. Bloomberg reported on 23 April that about 7% of the US workforce would be eligible, according to a person familiar with the planning. The Verge says that offer went to around 9,000 US employees at a certain level whose age plus years of service totalled 70 or more.

CNBC says Microsoft said in July that over 30% of those eligible went ahead. Business Insider reported in June, citing a person familiar with the turnout, that about one-third took it, in line with expectations.

The new offer is wider. CNBC's source says the earlier scheme was open to senior director level and below, while this one goes higher, to vice president level, and that Microsoft has no target in mind this time. The two programmes are counted on different bases: the April one covered US employees only, and this one spans four countries. Even so, roughly 60,000 eligible against around 9,000 shows a big step up in scale.

The context

CNBC frames the move as Microsoft striving to balance a costly AI infrastructure buildout with capital efficiency. It reports that Microsoft showed $19.64 billion in positive free cash flow for the second quarter, down 23% year over year. Business Insider describes the offer as the company's latest attempt to slim its workforce without another round of involuntary cuts, after heavy spending on AI infrastructure and headcount reductions this year.

Those reductions include the layoffs of 4,800 employees that CNBC says Microsoft announced in July. The Verge says that round primarily affected Xbox and commercial sales teams. The Verge also reports, citing a report from Fortune, that Xbox CEO Asha Sharma is planning new rounds of layoffs.

What Microsoft has said about more offers

On repeat offers, the accounts differ. A Microsoft spokesperson told Business Insider that there are no plans for another buyout at this time. The Verge reports that, per the HRweb note it saw, Microsoft says it may consider a future voluntary exit offer "where there is a business and workforce need." These statements are not necessarily in conflict, but they are worded differently.

CNBC says Microsoft reports third-quarter results on Wednesday.

Sources

Ford, B. (2026) 'Microsoft Offers Buyouts to About 7% of US Workers', Bloomberg.com, 23 April 2026, available at: https://www.bloomberg.com/news/articles/2026-04-23/microsoft-offers-voluntary-retirement-to-about-7-of-us-workers (Accessed: 26 October 2026).

CNBC (2026) 'Microsoft offers voluntary buyouts to 60,000 employees', CNBC, 26 October 2026, available at: https://www.cnbc.com/2026/10/26/microsoft-msft-voluntary-buyouts.html (Accessed: 26 October 2026).

Roth, E. and Warren, T. (2026) 'Microsoft offers buyouts to 60,000 employees', The Verge, 26 October 2026, available at: https://www.theverge.com/tech/1018666/microsoft-expands-buyouts-60000-employees-eligible (Accessed: 26 October 2026).

Stewart, A. (2026) 'Microsoft is offering buyouts to around 60,000 employees. Read the memo.', Business Insider, 26 October 2026, available at: https://www.businessinsider.com/microsoft-is-offering-buyouts-read-the-memo-2026-10 (Accessed: 26 October 2026).

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