Microsoft is offering voluntary severance packages to approximately 60,000 employees, which accounts for roughly a quarter of its total workforce. Chief People Officer Amy Coleman stated in an internal memo that these packages are designed to adapt the company's workforce to changing business needs.
The severance program is available to employees at the vice president level or below across the United States, Canada, India, and the United Kingdom. Divisions such as Xbox, Windows, Copilot, and Finance are fully included in the offering. Meanwhile, critical areas supporting Microsoft's artificial intelligence strategy—including data centers, sales, cybersecurity, and quantum computing—have been explicitly excluded from the cuts.
This initiative marks Microsoft's second voluntary departure program of 2026, following prior buyouts and job cuts earlier in the year. While overall headcount remains flat despite strong revenue growth, the company continues to prioritize massive investments in artificial intelligence infrastructure. This strategic workforce restructuring ensures that AI-critical teams remain shielded as the tech giant pivots its resources toward future artificial intelligence development.