27th October 2026 – (Washington) Microsoft is preparing a sweeping voluntary buyout offer that could cover roughly a quarter of its global workforce, equating to about 60,000 roles, according to reports and a company communication from Chief People Officer Amy Coleman. The move is aimed at reducing costs and reallocating resources amid rising artificial intelligence investment, with eligibility spanning major markets including the United States, the United Kingdom, India and Canada. Microsoft’s headcount is a little over 220,000 worldwide, indicating the scale of the programme.
In internal messaging and public remarks, Coleman framed the initiative as a choice for employees considering opportunities outside the company, while giving business units another lever to align staff levels with shifting needs. Her note emphasised support for reskilling and internal mobility alongside exits, underscoring management’s argument that AI is changing how work is done across the firm rather than simply replacing workers.
The offer follows earlier trims this year and mirrors a broader pattern across Big Tech as companies rework spending to fund AI infrastructure and products. Oracle disclosed in June that its workforce fell by about 21,000 employees in fiscal 2026, a decline of 13 per cent, while sector‑wide data show tens of thousands of roles eliminated as budgets shift toward cloud and AI priorities.
Debate continues over whether rapid adoption of generative AI has yet translated into clear efficiency gains. A recent set of research papers associated with the National Bureau of Economic Research reported that more than 90 per cent of surveyed executives had not seen measurable productivity improvements so far, even as usage rises. Separately, a Microsoft executive, Ryan Roslansky, publicly lamented the spread of “AI slop” in workplace outputs, reflecting internal and industry‑wide concerns about quality during the transition.
Microsoft did not provide full financial details of the programme in initial communications. However, the company indicated that eligible employees would receive support to make a near‑term transition, while affected organisations use the offer to rebalance staffing for long‑term AI‑driven priorities.
