Investment News · 27 October 2026 · 4 min read
In short: Microsoft announced a Voluntary Exit Offer on 26 October 2026 for about 60,000 employees, roughly 27% of its 2,23,000 full-time staff (as of June). It covers participating teams in the US, Canada, the UK and India. This is a voluntary buyout, not a layoff: eligible employees can choose to leave with a package. Those who accept are reported to leave on 31 December.
Key facts
| Item | What is reported |
|---|---|
| Announced | 26 October 2026, by Chief People Officer Amy Coleman |
| Eligible employees | About 60,000 (about 27% of the workforce) |
| Countries | US, Canada, UK, India (only participating teams) |
| Who is eligible | Level 70 and below; no age or tenure condition, per Microsoft |
| Not included | Corporate vice presidents; some groups such as sales, marketing and security, as reported |
| Decision deadline | First week of December (Daily Pioneer) |
| Last working day | 31 December 2026 (CNN, via PC Gamer) |
The package, as reported
Microsoft has not published the amounts. The Daily Pioneer reported that severance depends on level, tenure and location:
- Levels 64 and below: one week of base pay for every six months of service.
- Levels 65 to 67: two weeks of base pay for every six months, capped at 39 weeks.
- Level 68: 12 months of salary.
- Continued stock vesting for six or twelve months depending on tenure, and health cover for a fixed period.
Terms for India may differ. Coleman described it as “a new choice to make that transition now with support”, according to the report.
Why Microsoft is doing this
This follows a first Voluntary Retirement Program in April for about 8,750 US staff whose age plus years of service added up to 70 or more; about 30% accepted, according to the Daily Pioneer. Microsoft also cut about 4,800 jobs in July, many at Xbox. The company is spending heavily on AI data centres, and big tech firms together are expected to spend about $700 billion in 2026 on AI infrastructure, AP reported. Windows Central noted that voluntary exit programmes sometimes come before layoffs, though Microsoft has not said this. Microsoft reports quarterly results on 28 October.
What it means for you
- If you are an eligible Microsoft employee in India: read your offer letter closely for the payout, notice period, unvested stock and health cover before deciding.
- Tax: voluntary retirement compensation can be tax-free up to ₹5 lakh, once in a lifetime, only if the scheme meets the conditions in the income tax rules. Amounts above that, or payouts that do not qualify, are generally taxed as salary. Ask a tax adviser before you accept, and check your take-home on our income tax calculator.
- Plan the gap: keep 6 to 12 months of expenses as an emergency fund, and move your EPF and health cover deliberately rather than in a rush.
- For tech workers broadly: AI spending is changing how big tech hires. It is a good time to review your savings with our savings calculator.
Sources
- ABC News (AP): Microsoft offers quarter of global workforce voluntary buyouts
- Scroll: Microsoft offers exit packages to nearly one-third of workforce
- The Daily Pioneer: Microsoft offers voluntary exit to 60,000 employees
- Windows Central: Microsoft extends voluntary exit program to 60,000 employees
- PC Gamer: Over 25% of Microsoft’s workforce eligible for voluntary exit offer
- Outlook Money: VRS tax exemption is usually ₹5 lakh
This is a news summary for education, not investment advice. Figures are as reported on or before 27 October 2026; check official sources before making decisions.