Microsoft offers voluntary exit packages to about 60,000 employees

In short: Microsoft has offered voluntary exit packages to about 60,000 employees as it increases spending on AI infrastructure.

What happened

Microsoft has offered a voluntary exit package, also called a buyout, to about 60,000 employees. That is roughly 27% of its 223,000-person workforce, according to reports.

The offer applies to eligible employees at vice-president level and below in the United States, Canada, the United Kingdom, and India. Some roles are excluded, including certain data-center jobs, and some sales and marketing positions. A data center is a large building filled with computers that run online services, a bit like a power plant but for computing.

The package is voluntary, and Microsoft has not said how many people it expects to accept. Reports say eligible employees have until December to decide, and departures would happen around the end of the year. The package is described as broadly similar to a standard severance package.

Microsoft’s workforce has seen other changes recently. The company cut about 4,800 jobs in July and introduced a separate voluntary retirement program earlier in 2026. Microsoft said the July cuts were not replacements for AI, while also saying AI is changing how work gets done.

Why it matters

Microsoft is planning major spending on AI infrastructure, with reports citing a projection of about $175 billion for 2026. That has raised concerns that the company is trying to reduce labor costs to help pay for that buildout. Some analysts also warn that broad buyouts based on tenure could lead experienced employees, who may be important for Microsoft’s AI plans, to leave.

Source: NYTimes