Microsoft plans to offer a voluntary departure program to about 60,000 eligible employees in a move aimed at controlling costs and restructuring operations, coinciding with the expansion of AI and digital infrastructure investments.
Microsoft announced the program on Monday, October 26, 2026, to include eligible employees in the United States, Canada, the United Kingdom, and India, providing financial compensation and career transition support. The announcement does not mean laying off 60,000 employees; this number only represents the workers who can take advantage of the offer. The company has not specified how many will accept it.
Which categories are eligible for the voluntary departure program?
The program includes employees in specific sectors and units, including Windows, Xbox, Copilot, AI-related operations, and the financial sector. It targets workers at job level 70 and below, excluding certain departments such as sales, marketing, and some engineering roles.
Amy Coleman, Executive Vice President and Chief Human Resources Officer at Microsoft, said the program gives eligible employees an opportunity to transition to a new career phase with the company's support, emphasizing that it provides business units with more flexibility in managing their staffing needs.
Decisions to participate will be accepted until the first week of December, with expected departures by December 31, 2026. Compensation packages include benefits based on established severance arrangements, taking into account seniority, length of service, and local laws. This is in addition to specific benefits for healthcare, stock vesting, and career transition assistance.
AI investments are the biggest driver of restructuring
The move comes at a time when Microsoft is allocating massive investments to expand its capabilities in AI, cloud computing, and data centers. The company had projected total spending of about $175 billion during 2026 amid growing demand for AI services.
According to data in the report, the company's full-time global workforce reached about 223,000 employees on June 30, 2026, compared to about 228,000 in the previous year. This trend increases investor interest in the company's ability to generate returns from its AI infrastructure investments while maintaining profits.
The restructuring reflects a broader shift in the tech sector, where major companies are re-evaluating their staffing needs, streamlining operations, and directing resources toward AI-related areas. However, Microsoft has not announced that previously eliminated jobs are being directly replaced by smart technologies.
Previous rounds of job cuts at Microsoft
The voluntary departure offer follows a series of restructuring measures at Microsoft. In July 2026, the company announced the elimination of about 4,800 jobs, with cuts concentrated in the commercial sector and Xbox gaming business. Earlier in the year, it also launched a voluntary retirement program targeting nearly 8,750 eligible employees in the US, with over 30% accepting the offer.
The company previously indicated that it had redeployed more than 4,000 employees to new roles during the year prior to the July cuts announcement, as part of its efforts to limit involuntary job losses.
Microsoft has not yet disclosed the expected number of participants in the new program, and the announcement does not rule out further workforce adjustments according to business needs.
