Microsoft is offering voluntary severance packages to approximately 60,000 employees, representing roughly a quarter of its global workforce. Chief People Officer Amy Coleman stated in a memo that this initiative aims to adapt the staff to changing business needs. A spokesperson clarified that the company seeks personnel committed to solving its most difficult challenges. The programme applies to staff in the U.S., Canada, India, and the UK at vice president level or below. Departments such as Xbox, Windows, Copilot, and Finance are fully included in the cuts. Conversely, data centers, sales, cybersecurity, and quantum computing are excluded. These excluded areas are central to Microsoft’s current artificial intelligence strategy.
This initiative marks the company’s second such voluntary programme in 2026. Microsoft previously offered buyouts to 8,750 U.S. employees in May and reduced headcount by 4,800 in July. Total headcount remains near 223,000, a level similar to 2022 figures despite strong revenue growth. Chief Financial Officer Amy Hood noted that Microsoft plans to spend about $170 billion on AI infrastructure in 2026. This figure is slightly lower than the original $175 billion plan. The move signals a shift in how the company allocates human resources while maintaining heavy investment in technical capacity.
- The severance covers vice president level or below in specific regions.
- Excluded teams include data centers, sales, cybersecurity, and quantum computing.
- Total planned AI infrastructure spending is $170 billion for 2026.
