On the final days of October, Microsoft quietly opened a door for some sixty thousand of its people, roughly a quarter of its staff, to walk through with a voluntary exit package. It is a small human gesture set against an enormous wager: the company is pouring vast sums into artificial intelligence while trimming the payroll that once defined it. Across the technology world, similar choices are being made in similar rooms, and the question hanging over them is whether the machines being built will eventually make room for the people who built them, or simply replace them.
Microsoft Offers Voluntary Buyouts to About 60,000 Staff as It Funds AI Push
Roughly a quarter of the workforce, offered a way out
Mark
Sixty thousand people is a quarter of the company. Is Microsoft laying off a quarter of its staff?
Mimi
No. It's an offer, not a layoff. Employees in eligible teams can choose to take a voluntary exit package, and nobody has said how many will.
Luke
Right, and that's the gap. The 60,000 is how many are eligible, not how many will leave. The only comparison we have is April, when about 30% of eligible people took early retirement, and that figure comes via CNBC.
Mark
Who is eligible?
Mimi
Select teams in the US, Canada, India and Britain, vice president level and below. Some data centre, sales and marketing groups are left out.
Mark
And why now?
Mimi
The company frames it as flexibility. The backdrop is the AI spending: Microsoft expects US$175bil in calendar 2026, down from a previous US$190bil forecast.
Luke
Careful, though. The reporting places the buyouts next to the spending, but Microsoft hasn't said one pays for the other. The cost-cutting link comes from the wire's framing.
Mark
Is this part of a wider pattern?
Mimi
Yes. Meta, Amazon, Uber, eBay and Netflix have all cut jobs this year, and Microsoft cut nearly 5,000 in July, mostly in Xbox.
Luke
Worth noting that headcount fell from 228,000 to 223,000 before this offer. What this does to that number is unknown until we see who accepts.
O Pulso
- Roughly 60,000 employees across four countries now face a choice that will shape their careers within days.
- This is Microsoft's second buyout this year, following an April early-retirement offer that drew about 30% of eligible US staff.
- Spending on AI infrastructure is climbing toward US$175bil for 2026, even as the company tightens its headcount.
- Quarterly earnings due this week will reveal whether the cost cuts can keep pace with the cash flowing into data centres and chips.
- Across the industry, Netflix, Meta, Amazon, Uber and eBay are making similar cuts, and the ripples are spreading fast.
On the final days of October, Microsoft quietly opened a door for some sixty thousand of its people, roughly a quarter of its staff, to walk through with a voluntary exit package. It is a small human gesture set against an enormous wager: the company is pouring vast sums into artificial intelligence while trimming the payroll that once defined it. Across the technology world, similar choices are being made in similar rooms, and the question hanging over them is whether the machines being built will eventually make room for the people who built them, or simply replace them.
On October 26, Microsoft told about 60,000 of its employees that they could now choose to leave with a voluntary exit package. That is roughly a quarter of the workforce, offered at a moment when the company is trying to cut costs while spending heavily on artificial intelligence.
The offer covers staff on select teams in the United States, Canada, India and Britain, at vice president level and below, though some groups, including certain data centre, sales and marketing employees, are excluded. In a memo, chief people officer Amy Coleman framed it as a way to give employees more flexibility and more ways to shape their next chapter.
It is the second such offer this year. An April early-retirement offer drew about 30% of those eligible in the US, and regulatory filings show headcount already slipping from 228,000 at the end of 2025 to 223,000 by June. How many will accept this round is not yet known.
Microsoft is far from alone. Netflix, eBay, Meta, Uber and Amazon have all made deep cuts in recent months, and Microsoft itself let go of nearly 5,000 people in July, mostly in its Xbox division.
The spending behind it is staggering. Four large technology companies are on track to spend around US$700bil this year on AI infrastructure, and Microsoft has lowered its 2026 forecast to US$175bil. Its finance chief noted that much of that goes to chips that wear out quickly. Microsoft's quarterly earnings, expected later this week, will show whether its spending and staffing plans are finally in step.
On Oct 26, Microsoft told its employees that about 60,000 of them could now choose to leave the company with a voluntary exit package. That is roughly a quarter of the workforce, and the offer comes as the company looks to trim costs while it spends heavily on artificial intelligence.
A Microsoft spokesperson said the offer covers staff on select teams in the United States, Canada, India and Britain, at vice president level and below. Some groups are excluded, including some employees working on data centres and in sales and marketing. The company says about 27% of its workforce is eligible.
Amy Coleman, an executive vice president and the company's chief people officer, described it in a memo to staff. She said the Voluntary Exit Offer reflects how the company is evolving its approach to change, creating greater flexibility and, where possible, more ways for employees to shape their next chapter.
This is the second such offer this year. In April, Microsoft reportedly offered around seven per cent of its US workforce the option to retire early. According to CNBC, about 30% of those eligible took it. Regulatory filings show Microsoft had 223,000 employees worldwide at the end of June, down from 228,000 at the end of 2025. Those numbers predate the new offer, and it is not yet known how many people will accept it.
Microsoft is not alone. Netflix will reportedly cut around six per cent of its workforce, about 1,000 jobs, according to US media reports last week. eBay laid off 1,000 employees earlier this month, after a round earlier in the year that affected 800. In May, Meta cut around 10% of its global workforce, about 8,000 people, and in April it cancelled plans to hire another 6,000 and moved 7,000 employees into AI workflow-related roles. Uber said in September it would lay off around 10% of its staff, an estimated 3,000 or more. Amazon announced 16,000 global job cuts in January. Microsoft itself cut nearly 5,000 jobs in July, heavily concentrated in its Xbox gaming division.
The spending behind this is enormous. Amazon, Microsoft, Alphabet and Meta are collectively on track to spend roughly US$700bil (RM2.8 trillion) this year on AI data centres, chips and computing infrastructure. Microsoft said in July that it spent US$41bil (RM167bil) between April and June and expected to raise that to US$50bil (RM204.2bil) for July through September. It also lowered its forecast for total 2026 calendar-year spending to US$175bil (RM715bil), from US$190bil (RM776.25bil).
Chief financial officer Amy Hood told analysts that around two-thirds of the spending goes to short-lived assets, specifically chips, driven by customer demand for both AI and non-AI infrastructure.
Worries about what the technology means for jobs persist, and even industry insiders such as Anthropic chief executive Dario Amodei have warned of mass job losses. Microsoft is expected to report quarterly earnings later this week, which should show how its spending and staffing plans are lining up.
Citações Notáveis
The Voluntary Exit Offer reflects how the company is evolving its approach to change, with greater flexibility and more ways for employees to shape their next chapter.— Amy Coleman, chief people officer, Microsoft (paraphrased from memo)
About two-thirds of spending goes to short-lived assets, mainly chips, due to demand for both AI and non-AI infrastructure.— Amy Hood, CFO, Microsoft (paraphrased)
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