Microsoft Offers Voluntary Buyouts to 60,000 Employees

US-based technology company Microsoft has launched a voluntary exit program covering approximately 60,000 employees as it seeks to keep operating costs under control while increasing its investments in artificial intelligence. The program announced by the company offers employees in certain divisions in the United States, Canada, the United Kingdom, and India the option to leave with severance compensation and career support.

Microsoft's Voluntary Exit Program to Be Implemented in Four Countries

The Voluntary Exit Offer (VEO) program announced by Microsoft covers eligible employees at level 70 and below in the company's internal job-level system. While the AI Experiences, Copilot, Windows, Xbox, finance, and human resources divisions are included in the program, certain departments, such as sales, marketing, and security, are excluded.

Amy Coleman, the company's Executive Vice President and Chief People Officer, stated in a communication sent to employees that the program offers an opportunity to leave with financial support for those considering continuing their professional careers outside the company. According to Microsoft's statement, participation in the program will depend on the operational priorities and staffing needs of the relevant departments. Eligible employees will be individually informed of the offer terms.

Employees Must Make Their Decisions by December

Employees covered by the program are expected to evaluate the offers by the first week of December 2026. Employees who accept the offer are scheduled to leave the company at the end of the year. Severance terms may vary depending on employees' seniority, job levels, and regulations in their respective countries. The program also includes benefits such as continued health coverage for specified periods, equity rights, and career transition support.

Microsoft has not announced that all approximately 60,000 employees receiving the offer will be laid off. The figure refers to employees eligible to take advantage of the voluntary exit option. The company has not shared an estimate of how many employees will accept the program.

AI Investments and Personnel Costs on the Agenda

Microsoft's new program was announced at a time when the company is expanding its investments in artificial intelligence infrastructure and data centers. The company is reportedly projecting approximately $175 billion in capital expenditures for the 2026 calendar year.

The technology company, which had approximately 223,000 full-time employees worldwide as of the end of June 2026, eliminated approximately 4,800 positions in July of the same year. This figure represented approximately 2.1% of its total workforce. The company also implemented a voluntary retirement program for approximately 8,750 employees in the first half of 2026, with more than 30% of eligible personnel accepting the offer.

Microsoft Continues to Restructure Its Workforce

Microsoft states that the voluntary exit program does not entirely replace mandatory layoffs. The company indicates that additional staffing adjustments may be considered depending on organizational needs. As investments in artificial intelligence and spending on cloud computing infrastructure continue, the company is also pursuing measures to change its workforce structure. Microsoft announced that it aims to support existing employees in acquiring new skills and transitioning into suitable positions.