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Microsoft offers voluntary severance to about 60,000 staff, a quarter of its workforce

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Microsoft offers voluntary severance to about 60,000 staff, a quarter of its workforce

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 Microsoft spokesperson said the company 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. Data centers, sales, cybersecurity and quantum computing are excluded, which The Decoder describes as areas that are mostly important to Microsoft's AI strategy.

It is 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.

While headcount stays flat, CFO Amy Hood says Microsoft plans to spend about $170 billion on AI infrastructure in 2026. That is down slightly from the original $175 billion plan.

Key facts

  • Microsoft is offering voluntary severance to about 60,000 employees, roughly a quarter of its workforce, according to a memo from Chief People Officer Amy Coleman.
  • Eligible staff are in the U.S., Canada, India and the UK, at vice president level or below.
  • Xbox, Windows, Copilot and Finance are fully included; data centers, sales, cybersecurity and quantum computing are excluded.
  • It is Microsoft's second such program in 2026, after buyouts for 8,750 U.S. employees in May and 4,800 job cuts in July.
  • Headcount of about 223,000 is roughly the same as in 2022, while CFO Amy Hood says planned 2026 AI infrastructure spending is about $170 billion, down slightly from $175 billion.

Why it matters

The offer reaches about a quarter of one of the world's largest tech employers, and it sits next to a very large AI infrastructure budget. Microsoft's workforce is about 223,000, roughly where it was in 2022, despite strong revenue growth, and the company still plans to spend about $170 billion on AI infrastructure in 2026. The carve-outs show where Microsoft is protecting capacity: data centers, sales, cybersecurity and quantum computing are excluded, while Xbox, Windows, Copilot and Finance are fully included. This is also the second such program this year, not a one-off.

Who it affects

Employees in the U.S., Canada, India and the UK at vice president level or below are covered. Within that group, people in Xbox, Windows, Copilot and Finance are fully included. Staff in data centers, sales, cybersecurity and quantum computing are excluded. Employees elsewhere and those above vice president level are outside the program as described.

How to use it

This is a news item rather than a tool, so there is little to act on. For eligible Microsoft employees, the memo frames the packages as another way to adapt the workforce to changing needs. The source gives no deadline for accepting the packages and no terms such as the amount of severance, so anyone weighing an offer would need the internal documents rather than this report.

How solid is it

The report rests on an internal memo from Chief People Officer Amy Coleman, plus a comment from a Microsoft spokesperson, as relayed by The Decoder. The earlier figures (8,750 U.S. buyouts in May, 4,800 job cuts in July, a workforce of about 223,000) and the AI spending numbers attributed to CFO Amy Hood are stated in the article. The source gives no date for the memo or the announcement.

Risks and caveats

The source does not say how many employees are expected to accept, and it does not say whether layoffs will follow if too few do. The article describes the excluded areas as mostly important to Microsoft's AI strategy; it does not say they were chosen because of AI. No reaction from employees, unions or analysts is given. The 60,000 figure is approximate, and the offer is voluntary, so the number of people who actually leave may differ.

“another way to adapt their workforce to changing needs.”

— Amy Coleman, Chief People Officer, Microsoft, in a memo