Compiled from reports by TechCrunch, CBS News, Newsweek and Reuters. See the original articles linked below.
Microsoft is offering voluntary buyouts to roughly 60,000 employees, according to reports published on October 26, 2026 by TechCrunch, CBS News, Newsweek and Reuters. The offer covers eligible staff in the United States, Canada, India and the United Kingdom.
Who is eligible
Reuters, in a report carried by NBC News, said the 60,000 figure is more than a quarter of Microsoft's roughly 223,000 full-time employees, and that the company is trying to contain costs while funding large AI investments. CBS News put the share at about one quarter of the global workforce.
The outlets describe the seniority limit differently. Reuters said the offer applies to staff at level 70 and below, while TechCrunch and CBS News described it as employees at vice president level or below. Only selected teams take part. Reuters named AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices as eligible, and said marketing, commercial business and security are excluded. TechCrunch, citing Bloomberg, reported that Xbox, Windows, Copilot and Finance are participating and that data center, sales and marketing employees are left out.
The company's message
TechCrunch reported that Chief People Officer Amy Coleman told staff about the programme in a note, which Microsoft also published on its blog. TechCrunch said the terms resemble Microsoft's standard severance and that eligible employees were to receive an email with their individual offer details. Reuters and CBS News both quoted the note as describing the offer as giving employees a new choice to make the transition now, with support.
Newsweek stressed that the offer is not a layoff notice and that workers have until the first week of December to decide.
Earlier cuts this year
This is not Microsoft's first workforce reduction of 2026. Reuters said the company earlier offered buyouts to about 9,000 U.S. employees and announced 4,800 job cuts in July, mainly in its Xbox business. CBS News said that in May Microsoft reportedly planned buyouts for about 8,750 U.S. workers, and that the July cuts equalled about 2% of the global workforce. TechCrunch reported that over 30% of the roughly 8,750 workers eligible for the earlier buyouts accepted.
CBS News reported that Microsoft had 223,000 employees at the end of June, down from 228,000 at the end of 2025.
AI spending
Reuters said Microsoft plans about $175 billion in capital expenditure for calendar 2026, which has drawn investor scrutiny over whether AI returns will justify the cost. CBS News attributed the figure for AI infrastructure spending to Chief Financial Officer Amy Hood. Reuters added that Microsoft shares were up about 1% on the day of the announcement and about 10% for the year.
Immigration context
Newsweek linked the news to a wider debate over visas. It reported that on October 8 the Labor Department suspended Microsoft and seven other technology and consulting companies from the PERM green-card sponsorship programme, with Labor Secretary Keith Sonderling citing multiple active federal investigations involving Microsoft and Adobe. According to Newsweek, Vice President JD Vance argued that Microsoft replaced laid-off U.S. workers with H-1B visa holders. Microsoft disputes that, Newsweek said, stating that 80 percent of its roughly 6,000 recent petitions were extensions or status changes for existing employees. Newsweek also quoted Microsoft President Brad Smith calling Vance's characterisation completely off base, and said a $100,000 fee on certain new H-1B petitions remains tied up in litigation.
Newsweek said the number of employees who accept the offer will determine its impact. The outlets reviewed did not report how many are expected to accept.
Sources
- Microsoft offers buyouts to around 60,000 employees (TechCrunch, 2026-10-26)
- Microsoft offers buyouts to 60,000 workers as it pours money into AI (CBS News, 2026-10-26)
- Microsoft's 60,000-Worker Buyout Adds to H-1B Visa Uncertainty (Newsweek, 2026-10-26)
- Microsoft offers buyouts to around 60,000 employees to contain costs (Reuters, 2026-10-26)
This article was compiled with AI assistance from the reports listed above and reviewed by GMA before publishing.