Microsoft opens a voluntary resignation program to about 60,000 employees

According to a report by Financial Associated Press, Microsoft announced on October 26 local time that it will offer a voluntary severance compensation plan to approximately 60,000 employees to reduce costs and adjust its workforce for the AI era. More than a quarter of the total employee count is eligible, marking the company's third round of workforce adjustments this year.

A spokesperson stated that some vice presidents and below in the United States, Canada, India, and the United Kingdom are eligible to apply, and those who accept the plan will receive benefits similar to standard severance packages. According to informed sources, departments such as Xbox, Windows, Copilot, and finance will fully participate, while some employees in data centers, sales, marketing, cybersecurity, and quantum computing will not be eligible. Chief Human Resources Officer Amy Coleman mentioned in an internal letter that the plan provides an option for employees considering leaving to transition with the company's support, and it is another way for departments to adjust their teams. The spokesperson also noted that if top talent accepts the plan, the company will attempt to retain them in some cases.

In April this year, Microsoft launched its first voluntary retirement program for about 8,750 eligible U.S. employees, with over 30% ultimately accepting; in July, it announced layoffs of approximately 4,800 people, accounting for about 2.1% of the total workforce. The spokesperson expects the number of acceptances this time to be far less than the voluntary retirement program. As of the end of June, Microsoft had a total of 223,000 employees. According to the financial report on July 29, capital expenditures for the fourth quarter of fiscal year 2026 were $41 billion, a year-on-year increase of about 70%, and capital expenditures for the first quarter of fiscal year 2027 are expected to be about $50 billion.