Microsoft Offers Voluntary Severance to About 60,000 Employees While Shielding AI-Critical Teams

Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce, according to the company. Chief People Officer Amy Coleman wrote in a memo that the packages are "another way to adapt their workforce to changing needs," and a spokesperson said Microsoft wants employees committed to tackling its toughest problems. The program covers employees in the U.S., Canada, India, and the UK at vice president level or below.

Who is included and excluded

Xbox, Windows, Copilot, and Finance are fully included in the voluntary severance program. Data centers, sales, cybersecurity, and quantum computing are excluded, areas that are mostly important to Microsoft's AI strategy.

Recent workforce changes

This is the company’s second such program in 2026. Microsoft offered buyouts to 8,750 U.S. employees in May and cut 4,800 jobs in July. Its workforce remains about 223,000, roughly the same as in 2022, despite strong revenue growth.

AI spending plans

As headcount stays flat, CFO Amy Hood says Microsoft plans to spend about $170 billion on AI infrastructure in 2026, down slightly from its original $175 billion plan.

Sources: The Decoder