Microsoft lets go of 25 percent of employees

Microsoft announced Monday that it will provide voluntary exit offers to a substantial portion of its global workforce.

The company plans to extend these offers to approximately 60,000 employees, a figure representing one quarter of its total staff. Eligible candidates must work in the United States, India, Canada, or the United Kingdom and hold a job level of 70 or below. This internal ranking system places those levels at the principal or partner level, according to salary data from Levels.fyi.

Amy Coleman, the company’s Chief People Officer, stated that specific departments were chosen based on business priorities and customer commitments. She noted that the program is designed for employees who may already be considering career changes outside the firm. The move follows several years of cost management strategies as Microsoft invests heavily in artificial intelligence infrastructure and data centers.

This initiative is the second voluntary workforce reduction Microsoft has implemented in 2026. In April, the firm offered a retirement package to 8,750 long-tenured US employees, with about 30 percent accepting the terms. Later in July, the Xbox division cut 3,200 positions, which accounted for roughly 20 percent of its gaming unit.

Coleman indicated that the acceptance of the April retirement offers helped reduce the impact of subsequent planned layoffs. The current voluntary exit offer expands the scope of these reductions to a much larger pool of employees beyond those nearing the end of their careers.