Microsoft has offered voluntary exit packages to about 60,000 employees, roughly a quarter of its global workforce. The offer was announced on Monday, 26 October 2026, and covers staff on selected teams in the United States, Canada, the United Kingdom and India. It is voluntary, and no one has to leave. Here is what Microsoft has said, who is covered and what is still unclear.
What Microsoft Announced
- Who: About 60,000 employees, according to Dawn (AFP) and GeekWire. That is about 27% of Microsoft’s roughly 223,000 staff, using the Dawn figure.
- Where: The US, Canada, the UK and India.
- Type: A “Voluntary Exit Offer.” Employees choose whether to take it.
- Confirmed by: A Microsoft spokesperson and a memo from Amy Coleman, executive vice president and chief people officer.
Dawn quotes Coleman’s memo: “The Voluntary Exit Offer reflects an important part of how we’re evolving our approach to change.” GeekWire quotes her as writing that there is “no one-size-fits-all approach for every team or every employee,” and that the offer gives eligible employees who may be considering a future outside the company “a new choice to make that transition now with support.”
Who Is Eligible?
- Employees on teams that take part in the offer. Business leaders decide whether their groups participate, according to GeekWire.
- GeekWire says there is no age or tenure requirement and that performance is not a factor.
- The level limit is reported in different ways. Dawn says vice president level and below. GeekWire says up to level 70, which covers general managers and some vice presidents but not corporate vice presidents. ANI says level 70 and below.
- Some groups are not taking part. Dawn says these include some staff on data centres and in sales and marketing. GeekWire says the sales organisation, some engineering groups and some corporate functions are not participating.
What Employees Get
Dawn does not give the terms. GeekWire says the package matches Microsoft’s standard severance:
- Base pay based on tenure and level.
- Continued stock vesting.
- Healthcare coverage for a fixed period.
- Career transition services.
It does not include the extended healthcare offered under Microsoft’s earlier retirement programme. GeekWire says employees will get details by email and have until the first week of December to decide. ANI gives no amounts or deadline. These are single-outlet details.
Why Microsoft Is Doing This
Dawn says Microsoft is trying to cut costs while spending heavily on artificial intelligence. GeekWire describes the offer as one of several ways to adjust to changing business needs, against pressure from Wall Street to control costs while spending on data centres and AI. ANI quotes Microsoft as saying: “The Voluntary Exit Offer is new for us. We’ll learn from it.”
Headcount and Earlier Cuts
- Microsoft had about 223,000 employees at the end of June, down from 228,000 at the end of 2025, according to regulatory filings cited by Dawn.
- In April, Microsoft reportedly offered early retirement to about 7% of its US workforce, about 8,750 people. About 30% of those eligible took it, according to CNBC as cited by Dawn.
- GeekWire says Microsoft cut 4,800 jobs in July, hundreds more in September and more than 15,000 in 2025. It also says the new offer is not a replacement for layoffs, which will remain part of Microsoft’s approach depending on business conditions.
What About Pakistan?
Pakistan is not among the countries named in the reports I read, so staff in Pakistan are not reported as being covered. The reports do not say how the offer affects Microsoft’s partners or contractors elsewhere.
What Is Not Clear
- How many employees will accept the offer.
- The cost to Microsoft. GeekWire says its earnings report on Wednesday could include cost projections.
- The exact package terms for each country.
- Whether more layoffs will follow, which Microsoft has not ruled out.
Frequently Asked Questions
How many employees were offered a voluntary exit?
About 60,000, roughly a quarter of Microsoft’s workforce.
Which countries are covered?
The US, Canada, the UK and India.
Is it compulsory?
No. It is voluntary.
What do employees get if they leave?
According to GeekWire, severance based on tenure and level, continued stock vesting, healthcare for a fixed period and career support.
How long do they have to decide?
Until the first week of December, according to GeekWire.
Does this mean no more layoffs?
No. Microsoft says the offer is not a replacement for layoffs.
The offer shows how large technology companies are reshaping their workforces as they spend more on AI. The number who accept it will show how many employees want to leave.
