Microsoft offers voluntary exit packages to 60,000 staff

Microsoft has announced a voluntary exit package for around 60,000 employees, roughly a quarter of its workforce, as the company aims to reduce costs while investing heavily in artificial intelligence. Eligible staff members in the United States, Canada, India and Britain at vice president level and below will be offered the opportunity to exit voluntarily.

However, certain groups of employees, including those involved in data centers, sales and marketing, are excluded from the offer. Microsoft's executive vice president and chief people officer, Amy Coleman, stated that the voluntary exit offer is part of the company's evolving approach to change, providing more flexibility and options for employees to shape their future.

This second voluntary buyout offer comes just months after Microsoft provided around seven percent of its US workforce the chance to retire early in April. In total, around 27 percent of Microsoft's eligible workforce can take advantage of the new buyout offer. The tech giant reported having 223,000 employees globally at the end of June, down from 228,000 at the end of 2025.

Microsoft is expected to report its quarterly earnings later this week. Despite the company's focus on AI investments, concerns remain about the potential impact on jobs. Other major tech companies, such as Netflix, eBay, Meta and Uber, have also recently announced significant layoffs, with Meta alone cutting around 10 percent of its global workforce, impacting around 8,000 employees.

Microsoft itself laid off nearly 5,000 employees in July, primarily targeting its Xbox gaming division. In July, the company spent $41 billion on AI-related investments, with plans to increase spending to $50 billion between July and September, bringing its total spending for 2026 to $175 billion, down from the previously expected $190 billion.