Microsoft offers voluntary buyouts to about 60,000 of its 223,000 employees

Microsoft is offering voluntary buyouts to about 60,000 employees. The Verge describes the figure as "up to 60,000". Reuters, citing Business Insider, describes it as "around 60,000". Microsoft has about 223,000 employees globally.

Employees in the Xbox, Windows and Copilot divisions are eligible. Staff in marketing and security teams are not.

Who is covered

According to The Verge, the offer covers employees in the US, UK, Canada and India. Sources cited by The Verge said staff in AI experiences, CoreAI, finance and human resources are also eligible. The same sources said cloud + AI, MicrosoftAI, and corporate, external and legal affairs are partially participating. Commercial business and discovery and quantum teams are not participating, they said, and commercial sales teams are not targeted.

Bloomberg reported on Monday that datacenter employees are not eligible, according to The Guardian. The reports do not say whether those staff are part of the cloud + AI organisation.

An internal HRweb note seen by The Verge says the offer is not based on age, length of service or performance.

Background

Earlier in 2026, Microsoft offered a voluntary retirement program to some US employees. The Guardian puts its scope at about 7% of a US workforce of about 125,000. The Verge puts it at around 9,000 employees. According to The Verge, it was limited to US employees at a certain level whose age plus years of service totalled 70 or more.

According to The Verge, Microsoft laid off 4,800 employees months before this offer, mainly in Xbox and commercial sales. The Verge, citing Fortune, reported that Xbox CEO Asha Sharma is planning new rounds of layoffs.

The Guardian, citing unnamed reports, links the offer to cost reduction amid rising AI use. The Verge describes it as a way to trim staff without another round of layoffs. Neither rationale is attributed directly to Microsoft. Microsoft did not respond to a request from The Guardian for further details.

What is disputed

No outlet disputes the core facts. The reports differ in how they describe the size of the offer and of the earlier retirement program.

What Microsoft says

The Guardian quoted Amy Coleman, executive vice-president and chief people officer, as saying: "This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs."

In a memo to employees quoted by The Verge, Coleman wrote: "The Voluntary Exit Offer is new for us." She added: "There is no one-size-fits-all approach for every team or every employee."

The HRweb note says Microsoft may consider a future offer "where there is a business and workforce need", according to The Verge.

What the reports do not include

The reports do not describe the financial terms, a deadline to accept, expected uptake, cost savings, or whether involuntary layoffs could follow.

Analysis

A voluntary offer of this size lets Microsoft reduce headcount without selecting who leaves. Its effect depends on details the reports do not include, such as the financial terms and how many staff accept. High uptake could reduce pressure for further layoffs. Low uptake could leave that question open, particularly as The Verge, citing Fortune, reports further Xbox cuts are being planned. The AI-related explanation comes from unnamed reports, not Microsoft, so it remains one possible reading. Coleman's own description of the offer as new suggests the company may adjust the approach over time.

Produced by the Vocemundi newsroom with AI assistance.