Microsoft has launched a new voluntary exit program that could potentially cover around 60,000 employees. The program offers financial support to workers who choose to leave the company and marks another stage in Microsoft's restructuring amid rapidly growing spending on artificial intelligence.
Microsoft Chief People Officer Amy Coleman announced the Voluntary Exit Offer on October 26. According to Coleman, the program gives employees an additional opportunity to pursue a career outside the company with financial support, while allowing participating organizations to adapt their workforce to current business needs.
The Voluntary Exit Offer does not automatically apply to all Microsoft employees. The program is available only within participating organizations, and employees at level 70 and below may be eligible.
The offer is available to employees in the United States, Canada, the United Kingdom, and India. Microsoft describes the program as time-limited and voluntary, with specific terms depending on the organization and its workforce needs. Eligible employees receive details of their individual offers by email.
According to reports, the participating areas include AI Experiences, Copilot, Windows + Devices, Xbox, finance, and HR. At the same time, some areas, including marketing, commercial business, and cybersecurity, are excluded from the program.
Importantly, this is a voluntary exit program, rather than an automatic layoff of 60,000 employees. Microsoft has not said how many workers will ultimately accept the offer.
The new program comes as Microsoft is simultaneously seeking to optimize its workforce and significantly increase spending on artificial intelligence.
In recent years, Microsoft has made AI one of the company's main areas of growth. The company is expanding its cloud infrastructure, data centers, and AI-powered services, including the Copilot ecosystem.
At the same time, large-scale AI investments require significant resources. Reducing workforce costs is one way for Microsoft to redirect resources toward its strategic priorities. The new Voluntary Exit Offer is therefore part of a broader effort to adapt the company's workforce to changing business needs.
The situation is particularly important for Microsoft's gaming division. Xbox is among the areas whose employees may be eligible for the new voluntary exit program.
This comes after significant changes within Xbox during 2026. In July, Microsoft announced thousands of job cuts, with a substantial portion affecting its gaming business. The company also restructured Xbox and closed several studios as part of the changes.
The new program is therefore not an isolated event but another step in Microsoft's broader restructuring. The company is attempting to reorganize parts of its business while increasing the role of AI and controlling costs.
According to Microsoft's annual report, the company had approximately 223,000 full-time employees worldwide as of June 30, 2026.
If around 60,000 employees are eligible for the VEO, the potential reach of the program would represent more than a quarter of Microsoft's global workforce. However, this does not mean that this number of employees will leave the company: participation is voluntary, and Microsoft has not announced how many people it expects to accept the offer.
The new initiative is another major voluntary workforce program introduced by Microsoft in 2026. The company has already used voluntary departure measures earlier this year, while the current program has a broader scope and is designed to give eligible employees financial support and career-planning resources.
Microsoft has not yet disclosed the final number of employees who will leave under the VEO. However, the launch of the program highlights the scale of the changes taking place inside the corporation: Microsoft is simultaneously optimizing parts of its workforce, restructuring certain divisions, and continuing to invest heavily in artificial intelligence.
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