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Microsoft weighs voluntary layoffs for 60,000 amid AI push

Published : Tuesday, 27 October, 2026 at 11:43 AM

Observer Online Report

Collected Photo

Tech giant Microsoft has offered voluntary exit packages to approximately 60,000 employees—representing over a quarter of its global workforce—as part of a strategic restructuring to manage soaring capital expenditures driven by massive investments in artificial intelligence, according to Reuters.

The voluntary departure program applies to specific departments, including Windows, Copilot, AI Experiences, Finance, Human Resources, Xbox, and Windows & Devices. However, teams in marketing, commercial business, and security are excluded from the offer, according to sources familiar with the matter.

In an internal memo sent to employees, Microsoft Chief People Officer Amy Coleman stated that the initiative is designed to assist workers considering career transitions outside the company, while simultaneously enabling business units to align their headcount with evolving operational demands.

Like other major technology titans, Microsoft has poured immense capital into AI infrastructure, data centers, and advanced processors. However, these expenditures have sparked investor anxiety regarding the timeline and certainty of projected returns. For the current fiscal year 2026, the company has forecasted a staggering capital expenditure of $175 billion.

According to Microsoft's annual report, the company's total full-time global workforce stood at 223,000 as of June 30, 2026. The inclusion of 60,000 employees in the buyout window represents a significant portion of its personnel.

The company stated that eligible employees holding level 70 or below within specified divisions in the United States, Canada, the United Kingdom, and India will be able to access the voluntary program within a designated timeframe. Detailed notices are being distributed directly to qualifying staff.

This latest initiative follows earlier workforce adjustments earlier this year, when Microsoft offered voluntary exit packages to approximately 7 percent of its US staff—amounting to roughly 9,000 employees.

Additionally, the company announced the elimination of 4,800 roles in July as part of an ongoing restructuring of its Xbox gaming division, alongside plans to divest or close up to five game studios.

-SA

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Editor : Iqbal Sobhan Chowdhury

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