Microsoft's third layoff round offers voluntary exit to 60,000 employees amid AI-driven cuts

oran_ge · x · 2026-10-27

Microsoft sent a Voluntary Exit Offer to 60,000 employees (27% of its 223,000 global workforce), covering level 70 and below in the US, Canada, India and the UK — including GMs and some VPs — with no age or tenure requirements and a Dec 31 exit date. This is Microsoft's third cut this year: April's first-ever buyout targeted near-retirement staff (8,750 eligible, 30% accepted, generous packages), and July's regular layoff cut 4,800. This round is an order of magnitude larger but with weaker terms: 8-39 weeks' pay, but voluntary departure means no unemployment benefits.

Notably, Microsoft isn't short on cash: 2025 capex is $115.9B (up 79.6% YoY, 35% of revenue) and revenue per employee rose from $1.235M to $1.488M — exactly the AI-era pattern where AI boosts efficiency and cuts headcount.

Related event: Microsoft offers voluntary buyouts to up to 60,000 employees amid AI spending surge(28 posts)→

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