Microsoft offers buyouts to 60,000, a quarter of its staff

Microsoft offered voluntary buyouts to about 60,000 employees on Monday, October 26, 2026. That is more than a quarter of its workforce. The offer covers staff in the United States, the United Kingdom, Canada and India. It is Microsoft's second buyout this year, and it comes as the company plans to spend $175 billion on AI infrastructure in 2026.

A buyout is a payment offered to employees who agree to leave on their own. Unlike a layoff, nobody is forced out, and staff choose whether to take it.

Who can take the offer

Fox Business reports that the offer is open to employees at Level 70 and below. CBS News describes the same group as staff at vice president level or below.

Not every team is included. Fox Business says only some organizations take part, based on each business unit's priorities, customer commitments and workforce needs. CBS News, citing Bloomberg, reports that data center staff and sales and marketing staff are excluded.

Detail	What the reports say
Eligible staff	about 60,000
Share of workforce	more than a quarter; about 27% per AFP
Countries	US, UK, Canada, India
Levels	Level 70 and below
Excluded teams	data centers, sales and marketing
Terms	financial support and career-transition help
Deadline	time-limited; exact date not reported

Eligible employees were to get the details by email within a few hours of the announcement, according to Fox Business.

What Microsoft says

Amy Coleman, Microsoft's chief people officer, explained the move in a memo to staff. "This offer gives eligible employees who may be considering a future outside the company a new choice," she wrote, as quoted by CBS News. Fox Business quotes another line from the memo: "There is no one-size-fits-all approach for every team or every employee."

AFP, in a report carried by CTV News, says Microsoft is looking "to cut costs and invest more in AI."

A year of shrinking headcount

Microsoft had about 223,000 employees on June 30, 2026, down from 228,000 at the end of 2025, CBS News reports from the company's filings. The cuts this year came in several steps:

• Earlier buyout: Microsoft offered a buyout to about 7 percent of its US workforce earlier this year. CBS News, citing the Associated Press, puts that group at about 8,750 people. Fox Business says about 9,000.
• July cuts: About 4,800 jobs, roughly 2 percent of the global workforce. Fox Business ties that round to an Xbox overhaul and plans to sell up to five game studios.
• This offer: About 60,000 people, the largest group yet.

CBS News says chief financial officer Amy Hood gave the $175 billion AI infrastructure figure on Microsoft's July earnings call.

What this means for developers

Microsoft is moving money from payroll toward data centers and chips. That shift will show up in the products and teams developers depend on.

• Expect changes in support contacts. Product and engineering teams in eligible groups may lose experienced people. If you rely on named contacts for Azure, Windows or developer tools, confirm who owns your account in the coming months.
• Watch for slower roadmaps in smaller products. Teams that lose staff often trim lower-priority features first. Note any Microsoft product your stack depends on that has a small user base.
• Hiring managers, get ready. A pool of senior engineers in the US, UK, Canada and India may enter the job market. Open roles now if you want to reach them.
• Microsoft staff, read the terms closely. The offer is time-limited. Compare it with the July cuts and earlier rounds before deciding.

Microsoft reports quarterly results later this week. Investors will look for how much more it plans to spend on AI, and how many people take the buyout.