Microsoft offers voluntary exit packages to up to 60,000 staff, including in the UK

Microsoft has offered around 60,000 employees the chance to leave voluntarily in return for a severance package and help finding new work. The programme, called Voluntary Exit Offer, was announced on 26 October 2026.

Who is eligible

Amy Coleman, Microsoft's chief people officer, told staff the company was introducing the option of voluntarily ending employment on special terms. Selected employees in the United Kingdom, Canada, India and the United States can take part. The programme covers roles up to level 70 in Microsoft's internal hierarchy, so some managers and vice presidents are eligible too.

According to Reuters, as cited by Spider's Web, the offer went to teams working on artificial intelligence, Copilot, Windows, Xbox, finance and human resources. Some departments, including sales, marketing and cybersecurity, are outside the programme.

At the end of June 2026 Microsoft employed about 223,000 people, so the offer covers nearly 27% of its workforce. However, the company has not said how many people it hopes will leave, and it is not known how many will accept.

Terms and deadlines

Eligible staff receive individual financial offers and help planning their next career step. Terms depend on factors such as role and length of service. According to Spider's Web, they broadly match Microsoft's standard severance packages and may include pay for a set period, some employee benefits and continued vesting of share awards.

Employees have until the first week of December to decide, and employment is due to end at the end of the year. Microsoft stresses that taking the offer is voluntary and that not every team needs the same changes: some will keep growing, while others are to adjust their size to current needs.

Background: AI spending and earlier job cuts

The programme comes during a costly expansion of AI infrastructure. Microsoft forecasts capital expenditure of around $175bn for the whole of 2026. Much of that goes on data centres, servers and processors needed to run AI models.

This is not the first reduction in staffing this year. In spring the company launched a voluntary retirement programme aimed at about 8,750 people in the US, which more than 30% of those eligible accepted. In July it announced 4,800 job cuts. The author of the source notes there is no basis for claiming that everyone covered by the offer has become redundant because AI automated their work.

What this means for you

The offer applies to selected Microsoft employees in the United Kingdom, so it may affect people working at the company's UK operations. Detailed terms depend on role and length of service, and the decision is voluntary. The sources do not say how many people in the UK are covered.