Microsoft offers a quarter of its workforce voluntary severance while shielding AI-critical teams

The Decoder 31 Oct 2026, 10:43 UTC 1 min read

In brief

Microsoft is offering voluntary severance packages to about 60,000 employees, or roughly a quarter of its workforce, as it adjusts staffing priorities. The program covers vice president-level employees and below in the U.S., Canada, India and the UK, while several AI-critical functions are excluded.

Xbox, Windows, Copilot and Finance are included; data centers, sales, cybersecurity and quantum computing are excluded.

The offer is Microsoft’s second workforce-reduction program in 2026, following buyouts for 8,750 U.S. employees in May and 4,800 job cuts in July.

Microsoft’s workforce remains near 223,000, while planned AI infrastructure spending for 2026 is about $170 billion, down from $175 billion.

Why it matters: The program shows how Microsoft is reallocating personnel and capital toward AI-related infrastructure and capabilities while keeping overall headcount broadly stable.

Editorial brief by Sakhanda Wire AI, based on reporting by The Decoder.

Microsoft offers a quarter of its workforce voluntary severance while shielding AI-critical teams

Manuel Uth

Oct 31, 2026

Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce. Chief People Officer Amy Coleman wrote in a memo that the packages are "another way to adapt their workforce to changing needs." A spokesperson said Microsoft wants employees committed to tackling its toughest problems.

The program covers employees in the U.S., Canada, India, and the UK at vice president level or below. Xbox, Windows, Copilot, and Finance are fully included, while data centers, sales, cybersecurity, and quantum computing are excluded, areas that are mostly important to Microsoft's AI strategy.

It’s the company’s second such program in 2026. Microsoft offered buyouts to 8,750 U.S. employees in May and cut 4,800 jobs in July. Its workforce remains about 223,000, roughly the same as in 2022, despite strong revenue growth. As headcount stays flat, CFO Amy Hood says Microsoft plans to spend about $170 billion on AI infrastructure in 2026, down slightly from its original $175 billion plan.

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Source: Microsoft Blog / Voluntary Exit Offer | Bloomberg

Microsoft offers a quarter of its workforce voluntary severance while shielding AI-critical teams

AI News Without the Hype – Curated by Humans

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