Microsoft Offers Voluntary Buyouts to Up to 60,000 Employees Across Four Countries
Microsoft is offering voluntary buyouts to as many as 60,000 employees in the US, UK, Canada, and India, aiming to reduce headcount without another layoff round. The program follows 4,800 cuts announced months ago, mainly in Xbox and commercial sales.
Microsoft announced in October 2026 that it is offering voluntary buyouts to up to 60,000 employees across the United States, United Kingdom, Canada, and India, as the company looks to reduce headcount without resorting to another round of layoffs.
The offer was communicated to staff by Microsoft chief people officer Amy Coleman, who described it as giving employees “the opportunity to leave Microsoft with financial support and career planning resources.” Coleman called the program “new for us” in a memo to employees, adding that the company would “learn from it.”
According to sources familiar with the situation who spoke to The Verge, employees across a wide range of teams are eligible, including those in AI experiences, Copilot, CoreAI, Windows + Devices, Xbox, finance, and human resources. Microsoft’s cloud + AI, MicrosoftAI, and corporate, external, and legal affairs teams are partially participating. Employees on the marketing, commercial business, discovery and quantum, and security teams are not included.
The voluntary exit program comes just months after Microsoft laid off 4,800 employees in a move that primarily affected its Xbox and commercial sales teams. Xbox CEO Asha Sharma is also reportedly planning additional layoffs, according to a report from Fortune.
This latest offer differs significantly from a previous voluntary retirement program Microsoft extended earlier in 2026, which was limited to roughly 9,000 US employees at a specific seniority level whose combined age and years of service totaled 70 or more. The new program is broader in scope and does not target commercial sales teams.
The scale of the offer — covering 60,000 eligible employees across multiple countries and business units — suggests Microsoft is undertaking a significant restructuring effort, though the company has framed it as an alternative to mandatory cuts.