Microsoft Layoffs: 60,000 Employees Offered Voluntary Buyouts, Not Laid Off
Microsoft has offered voluntary exit packages to about 60,000 staff in the US, Canada, India and the UK, a quarter of its workforce. Here's who is eligible.
Key points
- Microsoft announced a Voluntary Exit Offer on October 26, 2026, for employees at level 70 and below in participating teams in the US, Canada, India and the UK.
- About 60,000 employees are eligible, according to Bloomberg and other outlets. That is roughly 27% of the 223,000 full-time staff Microsoft reported on June 30, 2026.
- The offer is voluntary and is not a layoff of 60,000 people; eligible staff reportedly have until early December to decide, with departures at the end of the year.
- It follows Microsoft's first voluntary retirement program in the spring and about 4,800 job cuts in July.
Microsoft has offered voluntary exit packages to about 60,000 employees in the US, Canada, India and the UK, roughly a quarter of its workforce. Chief People Officer Amy Coleman announced the program to staff on Monday, October 26, 2026, in a memo the company also published on the Official Microsoft Blog.
Despite headlines about “Microsoft layoffs”, this is not a layoff of 60,000 people. The 60,000 figure is the number of employees who are eligible for the offer, and no one has to accept it. How many leave will depend on how many say yes.
Who is eligible for Microsoft’s Voluntary Exit Offer
According to Microsoft’s post, the offer covers employees at level 70 and below in participating teams in four countries: the United States, Canada, India and the United Kingdom. Not every part of the company is taking part. Coleman wrote that participation “varies based on each business’s priorities, customer commitments and workforce needs”, and that “there is no one-size-fits-all approach for every team or every employee.”
Microsoft did not publish a headcount. The figure of about 60,000 eligible employees was reported by Bloomberg, and The Next Web reports that Microsoft confirmed it to GeekWire. Microsoft’s annual report says it employed about 223,000 people full-time on June 30, 2026, 121,000 of them in the US and 102,000 internationally, so 60,000 is roughly 27% of the company.
Level 70 reaches high up the company. It includes general managers and some employees with vice president titles, but not corporate vice presidents, according to The Next Web.
What the buyout package includes
Microsoft’s post describes the offer as time-limited, with “financial support and career planning resources”. Eligible employees were told they would receive an email with their offer details within hours of the announcement. The company did not publish the terms.
Reports based on the offer give more detail:
- Deadline: eligible employees have until early December to decide, and those who accept will leave at the end of the year, Business Insider reported, according to SiliconANGLE.
- Severance: employees at level 64 and below would get one week of pay for every six months of service, plus six to 12 months of continued stock vesting, a limited period of healthcare coverage and outplacement support, Business Insider reported.
- No age requirement: unlike Microsoft’s earlier retirement offer, there is no age or tenure requirement, and performance is not a factor, according to The Next Web, citing GeekWire.
Microsoft’s earlier cuts in 2026
The exit offer is Microsoft’s third workforce move this year.
| When | What | Size |
|---|---|---|
| Spring 2026 | First Voluntary Retirement Program, for US staff whose age plus years of service totalled 70 or more | About 8,750 eligible; about 30% accepted |
| July 2026 | Job cuts, with Xbox among the hardest-hit divisions | About 4,800 roles |
| October 2026 | Voluntary Exit Offer in four countries | About 60,000 eligible |
Microsoft booked a $900 million charge for the retirement program, and told GeekWire it expects a much smaller share of employees to accept this new offer, The Next Web reported. Coleman’s memo says the new offer builds on lessons from that earlier program, and that it “gives eligible employees who may be considering a future outside the company a new choice.”
Microsoft’s post does not mention layoffs, and the company has not said that the buyouts rule out further cuts.
Why Microsoft is doing this
Microsoft’s post frames the offer as giving employees more choice and giving its businesses another way to adapt to changing needs. Coverage has linked the move to cost-cutting while Microsoft spends heavily on data centers for AI. SiliconANGLE notes that Microsoft opened 31 new data centers last quarter. Microsoft is due to report its quarterly results this week, which may give more detail on what the program will cost.
What it means for Microsoft employees in India
India is one of only four countries where the offer applies, so employees at level 70 and below in participating teams at Microsoft India may receive an offer. Microsoft has not published India-specific terms or said how many of the roughly 60,000 eligible employees are outside the US. Newsweek reports that the buyouts add to uncertainty for H-1B visa holders; Microsoft received 6,258 H-1B approvals in fiscal 2025, according to US Citizenship and Immigration Services data cited by Newsweek.
More tech business news is on VulnTech News.
Sources
- Introducing a Voluntary Exit Offer (Official Microsoft Blog)
- Microsoft Form 10-K for fiscal year 2026 (SEC)
- Microsoft offers voluntary buyouts to about 60,000 employees (Proactive, citing Bloomberg, via Yahoo Finance)
- Microsoft offers buyouts to 60,000 employees, about a quarter of its staff (The Next Web)
- Microsoft offers voluntary buyouts to 60,000 employees amid AI investments (SiliconANGLE)
- Microsoft's 60,000 worker buyout adds to H-1B visa uncertainty (Newsweek)
