Quick answer: Microsoft is offering voluntary buyouts to about 60,000 employees, roughly one quarter of its global workforce. Eligible staff in the US, UK, Canada and India were notified by email on Monday, 26 October 2026. These are “voluntary exit offers,” not forced layoffs, but they come after two rounds of cuts earlier this year and as Microsoft plans to spend $175 billion on AI infrastructure in 2026.
Microsoft buyouts: key facts
| Employees eligible | About 60,000 (AFP puts it at about 27% of staff) |
| Countries | United States, United Kingdom, Canada, India |
| Levels | Vice president and below |
| Not eligible | Data center staff and sales and marketing employees (per Bloomberg) |
| Window | A “limited period” — no public deadline |
| Package | Financial support plus career-planning resources; amounts not disclosed |
| Total workforce | 223,000 at the end of June 2026 (down from 228,000 at end of 2025) |
What Microsoft said
In a memo to employees, Chief People Officer Amy Coleman said the offer gives eligible workers who are considering leaving “a new choice to make that transition now with support.” The company also benefits from lower labour costs if people take the offer.
Is this a layoff?
Not directly. A buyout is voluntary: eligible employees can choose to leave with a package, or stay. However, buyouts often come before or alongside other cost cuts, and this is the third workforce reduction step at Microsoft in 2026:
- May 2026: Buyouts planned for about 8,750 people, roughly 7% of the US workforce, according to the Associated Press.
- July 2026: 4,800 job cuts, about 2% of the global workforce, including many in the Xbox gaming business.
- October 2026: Voluntary exit offers to about 60,000 employees.
Why now: the AI spending squeeze
CFO Amy Hood said on the July earnings call that Microsoft expects to spend $175 billion on AI infrastructure, including data centers, in 2026 alone. Notably, data center staff are excluded from the buyout, a sign of where the company is still investing. Across the tech industry, companies are cutting or reshaping teams while redirecting budgets to AI chips, data centers and model development.
What eligible employees should check
- The exact terms in the offer email: severance amount, benefits continuation and any stock vesting rules.
- The deadline to accept, since the window is limited.
- Country-specific rules, which can differ between the US, UK, Canada and India.
- Whether accepting affects eligibility for future rehiring or unemployment benefits where you live.
FAQ
Is Microsoft laying off 60,000 employees?
No. About 60,000 employees are eligible for a voluntary buyout. How many accept is not yet known.
Which Microsoft employees can take the buyout?
Staff at vice president level and below in the US, UK, Canada and India, except data center and sales and marketing employees.
How many people work at Microsoft?
About 223,000 as of the end of June 2026.
Did Microsoft have layoffs earlier in 2026?
Yes. It cut 4,800 jobs in July and planned buyouts for about 8,750 US staff in May.
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Sources: CBS News, Bloomberg, Axios, TechCrunch, AFP; Google Trends US.
