AIToday
AI Business & IndustryYahoo Finance AIPublished: Oct 27, 2026, 04:00 JST

Microsoft offers buyouts to 60,000 employees in AI-era cost cuts

Send on LINE
Microsoft offers buyouts to 60,000 employees in AI-era cost cuts

3 Key Points

  1. What happened

    Microsoft will offer buyouts to 60,000 employees, with Xbox, Windows and Copilot among participating divisions. Cybersecurity, datacenters and marketing staff are not eligible.

  2. Why it matters

    This follows April's voluntary retirement offer to about 7% of its roughly 125,000 US employees, against a global workforce of about 223,000. Amy Coleman said the offer gives eligible staff "a new choice to make that transition now with support."

WHO IT HITSMicrosoft employees in participating divisions such as Xbox, Windows and Copilot face a decision on whether to take a buyout, while staff in cybersecurity, datacenters and marketing are excluded from the offer.

Not sure about something? Ask the AI

Questions and answers are published on this page.

Summaries like this, every morning.

Context & Analysis

The buyout offer comes after Microsoft's April move to offer voluntary retirement to about 7% of its US workforce, when that group numbered about 125,000 employees. The company's global workforce stands at about 223,000. The new offer reaches 60,000 employees across divisions including Xbox, Windows and Copilot, while cybersecurity, datacenters and marketing staff are excluded.

Microsoft frames the offer as a choice for employees considering a future outside the company. Amy Coleman, executive vice-president and chief people officer, said it also gives participating organizations another way to adapt their workforce to changing needs.

The move sits alongside workforce reductions at other tech companies this year. Meta announced plans in April to cut 10% of its personnel, or about 8,000 employees, and Oracle shed nearly 13% of its workforce, cutting 21,000 jobs, as a result of AI. Amazon has also made several cuts, most recently in its retail division. Whether these measures have translated into greater efficiency is unclear, and some companies including Meta have scaled back layoff plans. A National Bureau of Economic Research working paper found that among 9,000 senior executives surveyed worldwide, 90% said AI had yet to result in greater productivity at their companies.

FAQ
Which Microsoft divisions are included in the buyout offer?
Xbox, Windows and Copilot are among the divisions participating. Employees in cybersecurity, datacenters and marketing are not eligible.
How does this compare with Microsoft's earlier workforce reductions this year?
In April, Microsoft offered voluntary retirement to about 7% of its US workforce, which was about 125,000 employees at the time. Its global workforce is about 223,000.
What did Microsoft's chief people officer say about the offer?
Amy Coleman said the offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support, and gives participating organizations another way to adapt their workforce.
Yahoo Finance AIRead Original Article
Send on LINE

AI news that matters for your work, delivered every morning.

Pick your industry and the AI tools you use, and get news related to your work every day.

Free · 30 seconds with Google · unsubscribe anytimeWhat is AIToday? →

Ask AI

Ask AI anything about this article. The AI reads this article, earlier AIToday articles, and Wikipedia, and cites its sources. Q&As are published on this page for other readers too.

Questions and answers are published on this page.

Related Articles

Next articleAnthropic IPO filing reveals $400 billion in future obligations