Microsoft offers voluntary departure packages to about 60,000 employees, with data center and AI-related teams excluded
Microsoft is offering voluntary departure packages to about 60,000 employees, roughly a quarter of its total workforce, covering vice president-level and below employees in the United States, Canada, India and the United Kingdom. Xbox, Windows, Copilot and the finance department are all included, while data centers, sales, cybersecurity and quantum computing are excluded. This is Microsoft's second such program in 2026; in May it offered buyouts to 8,750 U.S. employees, and in July it laid off 4,800 people; total headcount remains about 223,000, and CFO Amy Hood said the company plans to invest about $170 billion in AI infrastructure in 2026.
Why read this
AI score 75
Microsoft is weighing layoffs against AI infrastructure investment, and readers can use this to observe how the workforce structure of big tech is tilting toward key AI teams.
Topics
Body
Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce. Chief People Officer Amy Coleman wrote in a memo that the packages are "another way to adapt their workforce to changing needs." A spokesperson said Microsoft wants employees committed to tackling its toughest problems.
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, while data centers, sales, cybersecurity, and quantum computing are excluded, areas that are mostly important to Microsoft's AI strategy.
It’s the company’s second such program in 2026. Microsoft offered buyouts to 8,750 U.S. employees in May and cut 4,800 jobs in July. Its workforce remains about 223,000, roughly the same as in 2022, despite strong revenue growth. As headcount stays flat, CFO Amy Hood says Microsoft plans to spend about $170 billion on AI infrastructure in 2026, down slightly from its original $175 billion plan .