Eligible staff in four countries have until December to decide, as the company weighs AI spending against cost control
Microsoft opened a voluntary exit offer on Monday to about 60,000 employees in the U.S., Canada, India and the United Kingdom, extending a buyout approach the company first tried in April.
The pool equals roughly 27% of Microsoft's 223,000 employees, according to CNBC. It's the company's second voluntary program of 2026.
Amy Coleman, executive vice president and chief people officer at Microsoft in Redmond, Washington, announced the offer in a memo to employees, which the company also published on its official blog.
"The Voluntary Exit Offer reflects an important part of how we're evolving our approach to change: creating greater flexibility and, where possible, more ways for employees to shape their next chapter," Coleman wrote. "This builds on what we learned earlier this year through the Voluntary Retirement Program."
What the voluntary exit offer covers
The program is open to eligible employees in participating teams at level 70 and below, Microsoft said. It's time-limited, and the company described it as a way to leave with financial support and career planning resources. The memo doesn't detail the package, and eligible workers were told to expect an email with their individual terms.
Microsoft's memo also doesn't give a headcount. The 60,000 figure comes from news reports.
CNBC's source said employees must decide in December and those who accept will leave on 31 December, 2026. Microsoft has no target number this time, the person said. The offer also reaches vice president level, a step above April's cutoff of senior director, according to the same source.
How the offer builds on April's retirement program
April's program was open to about 7% of Microsoft's U.S. workforce, which Computerworld calculated at roughly 8,750 people. More than 30% of those eligible took it, Microsoft said in July. The new offer is far wider, spanning four countries and an eligible pool nearly seven times larger by that count.
July also brought about 4,800 role eliminations, or 2.1% of Microsoft's global workforce. Coleman's memo that month took up the AI question.
"I also want to be direct that the roles eliminated today are not being replaced by AI," Coleman wrote. "At the same time, what is true is that AI is changing how work gets done."
Monday's coverage tied the new offer to cost pressure. CNBC said Microsoft is balancing a costly AI infrastructure buildout with capital efficiency, and reported that the company generated $19.64 billion in free cash flow in the second quarter, down 23% from a year earlier, while Alphabet and Amazon reported negative free cash flow. Agence France-Presse described the move as a way to cut costs while pouring money into AI. Coleman's October memo doesn't mention AI spending or costs. Microsoft reports quarterly earnings on Wednesday.
Which teams are in and which aren't
Participation varies. Microsoft said some organizations are offering the program and some aren't, depending on each business's priorities, customer commitments and workforce needs.
A source told Reuters the offer covers divisions including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, and excludes marketing, the commercial business and security. Agence France-Presse reported that some groups, including some working on data centers, sales and marketing, are excluded. CNBC's source said some marketing, sales and engineering teams have decided not to take part. Microsoft's memo doesn't say which divisions are involved.
