Microsoft Layoffs: 60,000 Employees Offered Voluntary Buyouts

Microsoft layoffs are taking a softer form right now, as Microsoft offered voluntary buyouts to around 60,000 employees in the U.S., Canada, India, and the U.K. on Oct. 26. That’s about 27% of its 223,000 workers. Eligible staff have until early December to decide, and those who say yes will leave on Dec. 31.

JUST IN: Microsoft $MSFT offers buyouts to 60,000 employees as it cuts costs amid AI adoption.

— Watcher.Guru (@WatcherGuru) October 26, 2026

Microsoft’s voluntary buyouts are also the largest move so far in a year packed with job cuts. Unlike regular cuts, the Microsoft employee buyouts let people choose whether to go, and that makes this chapter of the layoffs 2026 story a bit different.

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Microsoft Voluntary Buyouts: What the 2026 Job Cuts Mean

Who Can Take The Microsoft Buyout Offer

The latest wave of Microsoft layoffs covers workers at level 70 and below, which reaches up to vice presidents, a Microsoft spokesperson said. The package will look a lot like the company’s standard severance.

Teams such as Xbox, Windows, Copilot, and Finance are taking part, and staff in data centers, sales, and marketing sit this one out. Unlike past Microsoft layoffs, nobody has to leave, and the heads of each organization decided who qualifies.

Amy Coleman, Microsoft’s chief people officer, had this to say in a note to employees:

“The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter.”

Why Microsoft Is Cutting Costs Right Now

Behind the Microsoft layoffs sits a massive AI bill. Capital expenditures for the September quarter would top $50 billion, Microsoft said in July, up from $34.9 billion in capital spending and finance leases a year earlier.

That spending has put a strain on Microsoft’s finances, and it shows in the steady run of Microsoft job cuts. In April, the company rolled out its first-ever voluntary retirement program, and more than 30% of eligible workers took the deal. Then in July came plans to lay off 4,800 employees, which added to the Microsoft layoffs 2026 count.

Still, a Microsoft spokesperson told KUOW that AI is not driving these Microsoft voluntary buyouts. The company posted $19.64 billion in free cash flow in the second quarter, down 23% year over year, and Alphabet and Amazon both went negative.

What Comes Next For Microsoft Workers

Microsoft has no set target for this round of Microsoft layoffs. A spokesperson pointed Fortune to other big tech companies with similar programs that saw a 3% to 5% uptake. If the Microsoft employee buyouts follow that pattern, around 1,800 to 3,000 of the 60,000 eligible workers could leave by Dec. 31.

In the same note, Coleman stated:

“The Voluntary Exit Offer is new for us. We’ll learn from it. At the same time, we’ll keep helping people focus on the work that matters most, build new skills and, where it makes sense, find new opportunities across Microsoft. There is no one-size-fits-all approach for every team or every employee. These are a few of the ways we’re trying to meet different business needs while continuing to create opportunities for our own people to grow and contribute.”

For investors, the timing matters. Microsoft reports quarterly results on Wednesday, Oct. 28, and right now Wall Street wants to see if these Microsoft job cuts can offset the cost of the AI race. The call should also show how the Microsoft layoffs 2026 plan and the Microsoft employee buyouts fit into the budget.