On 26 October 2026 Microsoft disclosed a voluntary exit package that targets roughly 60,000 workers – more than a quarter of its global headcount – across its worldwide operations.

The offer is limited to employees at internal level 70 and below.

Severance is calculated on a sliding scale: staff at level 64 and below receive one week of base pay for every six months worked, while those at levels 65‑67 receive two weeks for the same period, with payouts capped at 39 weeks.

Employees at level 68 are offered a lump‑sum equivalent to 12 months of salary, and stock vesting may continue for six or 12 months depending on tenure, with health‑insurance benefits also possible.

Staff who wish to accept must submit their decision by early December 2026 and are expected to leave the company by 31 December 2026.

Chief People Officer Amy Coleman described the programme in an internal memo as a new choice for employees to transition with support, while CFO Amy Hood said she expects few to take the offer because of growth opportunities.

The initiative follows earlier workforce actions this year, including an April retirement package for about 8,750 U.S. staff and a July restructuring that cut roughly 4,800 roles worldwide, leaving the headcount at 223,000 as of June 2026.

Analysts view the voluntary buyouts as a cost‑management tool that lets Microsoft reduce staff without compulsory redundancies while it continues to invest heavily in AI infrastructure, data centres, chips and partnerships.

A group of employees calling themselves Concerned Microsoft Workers circulated an open letter criticizing the company’s rapid AI rollout, citing pressure to adopt AI tools, performance‑linked AI usage and broader ethical concerns.

The letter also raises issues about Microsoft’s data‑centre projects, contracts with U.S. Immigration and Customs Enforcement and the Israeli military, and calls for stronger worker protections, community safeguards and renewed environmental commitments.