Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce. The program spans four countries and includes many parts of the company, while carving out teams that Microsoft considers important to its AI strategy.
Who can take part
The offer is available to employees in the U.S., Canada, India, and the UK at vice president level or below. Xbox, Windows, Copilot, and Finance are fully included in the program.
Some teams are excluded: data centers, sales, cybersecurity, and quantum computing. The source describes these as areas mostly important to Microsoft’s AI strategy, suggesting the company is trying to preserve staffing in functions it sees as central to that work.
A second program in 2026
This is Microsoft’s second voluntary departure program in 2026. In May, the company offered buyouts to 8,750 U.S. employees. In July, it cut 4,800 jobs.
The current offer has a much broader potential reach by headcount, though the source does not say how many employees will accept. Voluntary severance gives eligible workers a choice, while allowing the company to adjust staffing as its needs change.
Workforce plans meet AI investment
Microsoft’s workforce remains about 223,000, roughly the same as in 2022, despite strong revenue growth. That relatively steady headcount sits alongside a major planned expansion of AI infrastructure.
CFO Amy Hood says the company plans to spend about $170 billion on AI infrastructure in 2026, down slightly from its original $175 billion plan. The severance offer and the infrastructure budget point to two simultaneous priorities: reshaping the workforce and directing substantial resources toward AI.
What the exclusions signal
The distinction between included and excluded teams is a notable feature of the offer. Broad eligibility reaches areas such as Xbox, Windows, Copilot, and Finance, while data centers, sales, cybersecurity, and quantum computing are protected from the program.
The source does not explain the terms of the packages or how Microsoft chose which teams to exclude. It does, however, connect the excluded areas to the company’s AI strategy. That makes the program more than a company-wide headcount offer: its boundaries also show which capabilities Microsoft is seeking to retain as it adapts its workforce.
How many employees leave will determine the eventual effect on staffing. For now, the company is offering a voluntary route to departure while keeping its stated AI infrastructure plans in view.