Who is eligible for Microsoft's voluntary severance?

The program covers employees in the U.S., Canada, India, and the UK at vice president level or below. Xbox, Windows, Copilot, and Finance are fully included.

How many employees is Microsoft offering buyouts to?

Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce. It is the company's second such program in 2026.

Which Microsoft teams are excluded from the buyouts?

Data centers, sales, cybersecurity, and quantum computing are excluded. These areas are mostly important to Microsoft's AI strategy.

AI Business & IndustryTHE DECODER11m agoOct 31, 2026, 22:01 JST

Microsoft offers 60,000 buyouts, shields AI teams

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3 Key Points

What happened
Microsoft is offering voluntary severance to about 60,000 employees—roughly a quarter of its workforce—across the U.S., Canada, India, and the UK at VP level or below.
Why it matters
The program fully includes Xbox, Windows, Copilot, and Finance but excludes data centers, sales, cybersecurity, and quantum computing, signaling where Microsoft sees its future.

WHO IT HITSMicrosoft employees at VP level or below in the U.S., Canada, India, and the UK, particularly in Xbox, Windows, Copilot, and Finance, face decisions about voluntary buyouts, while data center, sales, cybersecurity, and quantum computing staff are excluded.

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Context & Analysis

Microsoft's move comes after it offered buyouts to 8,750 U.S. employees in May and cut 4,800 jobs in July. Despite strong revenue growth, its workforce remains about 223,000, roughly the same as in 2022. The new program is described by Chief People Officer Amy Coleman as "another way to adapt their workforce to changing needs," and a spokesperson said Microsoft wants employees committed to tackling its toughest problems.

The exclusion of data centers, sales, cybersecurity, and quantum computing—areas mostly important to Microsoft's AI strategy—suggests the company is protecting teams tied to AI infrastructure even as it reduces headcount elsewhere. That aligns with CFO Amy Hood's plan to spend about $170 billion on AI infrastructure in 2026, down slightly from an original $175 billion plan. With headcount held flat since 2022, Microsoft appears to be shifting its workforce mix rather than shrinking overall, though it is not stated whether the buyouts will change total headcount.

FAQ

Who is eligible for Microsoft's voluntary severance?: The program covers employees in the U.S., Canada, India, and the UK at vice president level or below. Xbox, Windows, Copilot, and Finance are fully included.
How many employees is Microsoft offering buyouts to?: Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce. It is the company's second such program in 2026.
Which Microsoft teams are excluded from the buyouts?: Data centers, sales, cybersecurity, and quantum computing are excluded. These areas are mostly important to Microsoft's AI strategy.

THE DECODERRead Original Article

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