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NewsLos Angeles TimesOctober 26, 2026Los Angeles County

Microsoft offers voluntary buyouts to 60,000 employees amid cost-cutting and AI investments

Photo: Los Angeles Times

Microsoft is offering voluntary buyouts to approximately 60,000 employees globally as part of a cost-reduction strategy while increasing investments in artificial intelligence. Eligible workers across the U.S., U.K., Canada, and India face deadlines that vary by market, with the final departure date for those accepting expected by the end of December.

EmploymentArtificial IntelligenceTechnology
Read the full story at Los Angeles Times

Why It Matters

A quarter of Microsoft's 223,000-person global workforce is being offered a transition path out of the company to help leadership restructure teams around AI infrastructure, while certain roles in data centers, sales, and marketing are excluded.

Key Facts

  • Microsoft is offering voluntary buyouts to approximately 60,000 employees, representing about a quarter of its 223,000 global workforce.
  • The buyout program is open to employees in certain teams across the United States, the United Kingdom, Canada, and India.
  • Employees working on data centers, sales, and marketing are excluded from the buyout program, according to Bloomberg reports.
  • Subsidiaries owned by Microsoft, including LinkedIn, Github, Xbox, and Activision Blizzard, are not part of the voluntary buyout program.
  • For the first time, Microsoft has also introduced a voluntary retirement program for certain workers.
  • The last day for employees who accept the buyout is expected to be at the end of December, with response deadlines varying by market.
  • In July, Microsoft previously announced it was laying off 4,800 employees.
  • Microsoft reported fiscal fourth-quarter revenue reaching $90 billion and net income of $35.8 billion in July.

Who's Mentioned

PersonAmy Coleman“Executive vice president and chief people officer who issued the memo.”locationCanada“Market where certain employees are eligible for the buyout.”locationRedmond“City in Washington where Microsoft is based.”otherGemini“Google's AI assistant.”OrganizationGithub“Developer platform owned by Microsoft.”locationIndia“Market where certain employees are eligible for the buyout.”OrganizationMicrosoft“Tech giant offering buyouts to employees.”OrganizationOpenAI“Creator of ChatGPT.”otherCopilot“AI-powered assistant created by Microsoft.”OrganizationBloomberg“Media outlet that reported on employee eligibility exceptions.”OrganizationMeta“Major tech company laying off workers.”OrganizationXbox“Gaming studio owned by Microsoft.”OrganizationAmazon“Major tech company laying off workers and competitor to Microsoft.”locationUnited Kingdom“Market where certain employees are eligible for the buyout.”OrganizationActivision Blizzard“Gaming studio owned by Microsoft.”OrganizationLinkedIn“Social network owned by Microsoft.”OrganizationOracle“Major tech company laying off workers.”otherChatGPT“AI assistant created by OpenAI.”OrganizationGoogle“Major rival to Microsoft.”locationCalifornia“State where Microsoft has offices and employees.”