The Voluntary Exit Offer targets staff at level 70 or below, with terms resembling standard severance amid rising AI infrastructure spending

According to a 26 Oct 2026 Business Insider report and The Seattle Times, Microsoft is offering voluntary buyouts to roughly 60,000 employees — about a quarter of its workforce — as it seeks to reduce headcount without conducting another broad layoff.

The new Voluntary Exit Offer applies to employees at internal level 70 or below, on participating teams in the United States, Canada, India, and the United Kingdom. Because level 70 includes senior leaders, some vice-president-level staff are eligible.

The firm’s Chief People Officer, Amy Coleman, had announced the program in a memo, saying it reflects Microsoft’s effort to create “greater flexibility” and give employees more ways to shape their next career move. The firm has also published the announcement on its official blog, describing the offer as a time-limited, voluntary program that provides financial support and career-planning resources.

Not every part of the firm is participating. A Microsoft spokesperson has told Bloomberg that some data-center, sales, and marketing employees are excluded. People familiar with the plan have told The Verge that staff in Copilot, CoreAI, Windows + Devices, Xbox, finance, and human resources are eligible, while marketing, commercial business, quantum, and security teams are not taking part. Likewise, Reuters has reported that the offer includes AI experiences, Copilot, finance, HR, Xbox, and Windows + Devices, but excludes marketing, commercial business, and security.

Offer details

The financial terms have not been fully detailed, but Microsoft has revealed terms will resemble those of standard severance. Based on earlier US severance exercises this year, the terms include:

  • At least 60 days of base pay and, for many employees, as much as 39 weeks depending on seniority and tenure.
  • Deadlines for acceptance; those who accept will leave at the end of the year. Microsoft said it has no plans for another buyout at this time.

The buyouts arrive as Microsoft spends heavily on AI infrastructure, including data centers serving OpenAI and Anthropic, putting pressure on its finances, CNBC reported. Bloomberg has described the plan as part of an effort to control costs and reshape the workforce for the AI era.