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Microsoft announced a Voluntary Exit Offer on October 26, 2026, open to about 60,000 eligible employees in the US, UK, Canada and India. Chief people officer Amy Coleman described it in a memo to staff as a way to leave with financial support and career planning resources. The company employed roughly 223,000 people at the end of June, so the pool is about a quarter of its workforce, according to The Next Web.
Key facts
- Eligibility: employees at level 70 and below in participating teams in the US, UK, Canada and India. The Register says that means everyone at or below vice president level.
- Terms: comparable to Microsoft's standard severance, including base pay by tenure and level, continued stock vesting, healthcare for a fixed period and career transition services, per Microsoft's statement to GeekWire as relayed by The Next Web.
- Deadline: The Next Web reports a decision window to the first week of December. The Register gives December 31 as the close of the window. The sources disagree on this point.
- Criteria: no age, tenure or performance requirement, according to The Verge.
Which teams are in
Business leaders decide whether their organizations take part. Coleman's note says participation varies with each business's priorities, customer commitments and workforce needs.
The Verge, citing sources, reports that Copilot, CoreAI, Windows + Devices, Xbox, finance and human resources are eligible. Cloud + AI, MicrosoftAI and corporate, external and legal affairs are partially participating. Marketing, commercial business, discovery and quantum, and security are not. The Next Web adds that the sales organization is out. Engadget reports that data center teams are not eligible.
How it follows earlier cuts
The offer comes after a spring voluntary retirement program limited to US employees whose age and years of service met a threshold. Ars Technica puts eligibility at 8,750 employees, The Register at around 9,000, and both The Next Web and Ars Technica say about 30% accepted. Microsoft also cut 4,800 jobs in July, including 3,200 at Xbox, and The Next Web reports 268 more Xbox jobs went in September.
Microsoft told The Register the new offer reflects feedback from employees who would have taken the April program had they qualified. It also said the offer does not signal automation-driven reductions, and that it is not classifying the deal as a buyout because no one is being incentivized to leave.
Why it matters
A pool of 60,000 is large, but the number who accept is likely far smaller. Microsoft has set no target, according to The Register. That outlet notes Google saw 3% to 5% of eligible staff accept a similar offer in 2025, which would imply 1,800 to 3,000 departures at Microsoft. The Next Web says Microsoft expects a much smaller share than in the spring.
The offer also does not replace layoffs. The Next Web reports the company said they remain an option depending on business conditions, and The Verge says Microsoft may consider another voluntary offer where there is a business and workforce need. For staff in India, the country's inclusion makes it one of only four markets in the program.
What to watch
The Next Web reports Microsoft reports quarterly earnings on Wednesday, and notes it booked a $900m charge for the retirement program in its April earnings report. Any charge tied to this offer, the final acceptance count and further Xbox layoffs reported by Fortune, per The Verge, are the next signals of how large the reduction becomes.
