The offer was disclosed in a memo by Chief People Officer Amy Coleman earlier on Oct. 27, the report stated ^[2]. The buyout program comes as Microsoft increases spending on artificial intelligence (AI) and data center expansion, according to the report.

Eligibility and Terms of the Buyout Offer

Eligible employees include those at the vice president level and below in selected units in the U.S., Canada, India and the United Kingdom, according to the memo cited by Bloomberg. Some employees in data centers, sales and marketing are excluded from the offer, the report stated. According to insiders cited by the outlet, the tech giant's different divisions – such as those in charge of the Xbox, Windows operating system and the Copilot AI assistant – are fully participating in the offer.

Benefits will match a standard severance package, according to the report. Coleman's memo stated: "This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support." The memo did not specify how many employees are expected to accept the offer, according to the report.

AI Spending and Workforce Context

Microsoft employed 223,000 people at the end of June, according to Bloomberg data cited in the report. The company has cut thousands of jobs in recent years, and its total workforce began to plateau in 2022, Bloomberg reported.

The company has redirected resources toward AI infrastructure while trimming older departments, including gaming and traditional operations, according to the report ^[3]. In a January 2025 interview, former Google engineer Zach Vorhies said smaller and mid-sized companies lack the financial resources that giants like Meta, OpenAI and Microsoft possess, and that the value generated by AI firms was largely due to their immense capital reserves ^[4].

The workforce changes reflect Microsoft's stated priorities, according to the report. The company did not state that the buyouts are directly caused by AI spending, according to the reports.

Broader Corporate Layoff Trend

The report presented the Microsoft buyout announcement as part of a broader trend of workforce reductions across corporate America. The report cited the separate corporate announcements without attributing them to the tech giant.

According to Bloomberg, the voluntary buyout follows similar actions by the tech giant. In July of this year, Microsoft offered similar buyouts to employees of retirement age – with more than 30% of the almost 9,000 eligible staffers taking it ^[1]. A company spokesperson said Microsoft expects a smaller percentage of personnel to accept the latest buyout offer.

Conclusion

Microsoft employed 223,000 people at the end of June, according to Bloomberg data cited in the report. The company's total workforce began to plateau in 2022, Bloomberg reported. The company did not state how many employees are expected to accept the offer, according to the reports.

References

1. Microsoft to Offer Buyouts to 60,000 Workers in New Cost Cut. https://www.bloomberg.com/news/articles/2026-10-26/microsoft-to-offer-buyouts-to-60-000-workers-in-latest-cost-cut
2. 60,000 Microsoft Workers Offered Buyouts As AI Spending Boom Reshapes Workforce. https://www.zerohedge.com/markets/60000-microsoft-workers-offered-buyouts-ai-spending-boom-reshapes-workforce
3. Microsoft offers 60000 employees voluntary buyouts as AI. https://www.facebook.com/WMCActionNews5/posts/microsoft-offers-60000-employees-voluntary-buyouts-as-ai-spending-accelerates/1600722165427922/
4. Bright Videos News - Interview with Zach Vorhies - Mike Adams - BrightVideos.com, January 28, 2025.

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