Microsoft offers voluntary exit packages to 60,000 staff worldwide

The offer, detailed in a memo from chief people officer Amy Coleman, targets employees at level 70 and below and includes financial and career‑planning support.

By Felo News Desk · Published Mon, 26 Oct 2026 21:29:17 GMT

Microsoft disclosed on Oct. 26 that it is extending voluntary exit offers to roughly 60,000 workers – about a quarter of its global staff – across the United States, Canada, India and the United Kingdom, according to Bloomberg and the company’s own memo.

What happened

The tech giant, which employs about 223,000 people, is making the offer to employees classified at "level 70 and below," a range that includes some vice presidents and general managers. The memo, authored by chief people officer Amy Coleman, explains that eligible staff can receive a buyout and will also be provided with "financial support" and "career planning resources." The company warned that those who decline the offer could face future layoffs.

What the reports add

Gizmodo reported that the offer follows a similar voluntary retirement program earlier this year for retirement‑age employees, noting that about 30% of the 8,750 eligible workers accepted that earlier deal, reducing headcount by roughly 2,600. The Los Angeles Times added that the move comes as Microsoft seeks to trim costs while heavily investing in artificial‑intelligence initiatives, and that the company announced a separate layoff of 4,800 employees in July.

What was said

"This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support," Amy Coleman wrote in the memo, as quoted by both Gizmodo and the Los Angeles Times. She also said, "It also gives participating organizations another way to adapt their workforce to changing needs," the Los Angeles Times noted.

How it came about

Microsoft’s cost‑cutting measures follow a broader industry trend of layoffs and restructuring as firms accelerate AI development. Earlier this year the company introduced a voluntary retirement program for senior staff, and in July it announced a 4,800‑person layoff. The broader context includes Microsoft’s recent AI hardware push, detailed in Felo’s Oct. 13 story on the Maia 300 AI chip deployment.

Key facts

Microsoft is offering voluntary exit packages to about 60,000 employees, roughly a quarter of its workforce. (gizmodo.com)
The offer applies to staff at level 70 and below in the US, Canada, India and the UK. (gizmodo.com)
Eligible employees will receive a buyout plus financial support and career‑planning resources. (latimes.com)
The memo was authored by chief people officer Amy Coleman. (latimes.com)
Microsoft previously offered a retirement‑age buyout earlier in 2026, with about 30% uptake. (gizmodo.com)
In July 2026 Microsoft announced a separate layoff of 4,800 workers. (latimes.com)

Background

Microsoft’s AI‑focused investments, including the planned deployment of over a million Maia 300 AI chips in 2027, have been highlighted in Felo’s recent coverage (<a href="/news/microsoft-maia-300-ai-chip-deployment">Microsoft to Deploy Over a Million Maia 300 AI Chips Next Year</a>).

Timeline

2026-07-01 — Microsoft announced a layoff of 4,800 employees.
2026-08-15 — Microsoft introduced a voluntary retirement program for retirement‑age staff.
2026-10-26 — Microsoft announced voluntary exit offers to 60,000 employees.