Microsoft Offers Voluntary Severance to Quarter of Workforce, Exempting AI Teams
Microsoft is offering voluntary severance packages to approximately 60,000 employees, representing a quarter of its workforce, to adapt to changing business needs. The program covers divisions like Xbox, Windows, and Copilot but explicitly exempts teams critical to its AI strategy, such as data centers and quantum computing. This move reflects Microsoft's strategic pivot to concentrate resources on AI infrastructure while maintaining flat headcount amidst strong revenue growth.
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Microsoft offers a quarter of its workforce voluntary severance while shielding AI-critical teams
[Manuel Uth](https://the-decoder.com/author/manuel-uth/) Oct 31, 2026 Microsoft is offering voluntary severance packages to about 60,000 employees, roughly a quarter of its workforce. Chief People Officer Amy Coleman wrote in a memo that the packages are "another way to adapt their workforce to changing needs." A spokesperson said Microsoft wants employees committed to tackling its toughest problems.
The program covers employees in the U.S., Canada, India, and the UK at vice president level or below. Xbox, Windows, Copilot, and Finance are fully included, while data centers, sales, cybersecurity, and quantum computing are excluded, areas that are mostly important to Microsoft's AI strategy.
It’s the company’s second such program in 2026. Microsoft offered buyouts to 8,750 U.S. employees in May and cut 4,800 jobs in July. Its workforce remains about 223,000, roughly the same as in 2022, despite strong revenue growth. As headcount stays flat, CFO Amy Hood says Microsoft plans to spend about $170 billion on AI infrastructure in 2026, down slightly from its original $175 billion plan.