Microsoft confirmed to TechCrunch on October 26, 2026 that it is offering buyouts to approximately 60000 employees. This is Microsoft’s latest effort to cut costs and reshape the workforce for the AI era.

Microsoft Chief Human Resources Officer Amy Coleman sent a statement to employees regarding the buyout, which was also posted on the company’s website.

According to the instructions, employees at the level of vice president or below in some teams in the United States, Canada, India, and the United Kingdom are eligible. Bloomberg reported that departments such as Xbox, Windows, Copilot, and finance participated in the buyout plan. Some employees are excluded, including those in the data center, sales, and marketing departments.

This news was initially reported by Business Insider.

“The voluntary resignation plan reflects an important part of our constantly evolving approach to change: creating greater flexibility and providing employees with more ways to shape their next chapter where possible. This plan provides a new option for eligible employees who may consider leaving the company, allowing them to complete the transition now with support.”

The company stated that eligible employees received an email on Monday containing a link to details of their voluntary resignation plan. The buyout clause will be similar to Microsoft’s standard severance pay.

“The voluntary resignation plan is new to us. We will learn from it. At the same time, we will continue to help employees focus on their most important work, develop new skills, and seek new opportunities within Microsoft where reasonable. There is no one size fits all approach for every team or employee. These are several ways we attempt to meet different business needs while continuing to create growth and contribution opportunities for our own employees.”

The buyout plan provides Microsoft with a way to reduce its workforce without resorting to more destructive large-scale layoffs. This is not the first time the company has offered a buyout. Earlier this year, Microsoft offered buyouts to retirement age employees, and over 30% of the approximately 8750 qualified employees accepted the plan.

As of the end of June, the total number of Microsoft employees was 223000.