Microsoft Offers 60,000 Employees Voluntary Redundancy with Financial Compensation
The program aims to reduce costs following record spending on AI infrastructure
On 26 October 2026, Microsoft’s Chief People Officer Amy Coleman sent a memo to employees in the US, Canada, India, and the UK. In it, the corporation offered a portion of its workforce the option to resign voluntarily in exchange for financial support and resources for career planning.
"The voluntary exit program is a key part of how we are transforming our approach: we aim for greater flexibility and, where possible, provide employees with additional opportunities to plan the next stage of their careers," Amy Coleman stated.
The initiative will affect approximately 60,000 people—over 27% of the company’s total workforce. This is another effort by management to optimise expenses and avoid a new wave of forced layoffs following the redundancies earlier this year.
Employees at participating divisions at level 70 and below (including senior executives) may take part in the program. Sales departments, as well as certain engineering and corporate functions, are excluded. Employees have until the beginning of December 2026 to make a decision and leave the company by the end of the year.
The compensation amounts are equivalent to Microsoft’s standard severance package. In the US, this includes a minimum of 60 days of base salary, as well as additional payments for tenure (from 1 to 2 weeks’ salary for every six months of service), totalling up to 39 weeks.
The company emphasised that the Voluntary Exit Offer is a new experience for the corporation, and the participation of divisions depends on their current tasks, staffing needs, and commitments to clients.
