Microsoft is giving around 60,000 employees the option to voluntarily leave the company as the technology giant moves to control costs and reshape its workforce amid massive investment in artificial intelligence infrastructure.

The new programme, called the Voluntary Exit Offer (VEO), is not a mandatory layoff. Instead, eligible employees in participating organisations can choose to leave Microsoft with financial support and career-planning assistance.

Why is Microsoft offering the programme?

Microsoft Chief People Officer Amy Coleman said the Voluntary Exit Offer is intended to give employees who may be considering a future outside the company another option to make that transition with support.

The programme also gives participating organisations greater flexibility to adjust their workforce according to changing business needs, customer commitments and workforce requirements.

Importantly, 60,000 is the number of employees who may be eligible for the offer—not the number Microsoft has announced it will lay off. The company has not said how many employees are expected to accept the package.

Which employees are eligible?

The programme covers eligible employees at level 70 and below in participating teams across the United States, Canada, the United Kingdom and India.

However, not every Microsoft division is taking part. Reports indicate that some sales, marketing, engineering and other specific functions are excluded from the programme. Eligibility varies depending on the organisation and its business priorities.

What will employees receive?

Microsoft says eligible employees will receive financial support and career-planning resources if they choose to leave.

For employees in the United States, the packages are understood to be broadly aligned with Microsoft's standard severance structure. The exact benefits can vary according to seniority, location and length of service.

Business Insider reported that some offers include salary-based severance, continued health coverage and continued stock vesting for a specified period, depending on the employee's level and tenure.

Eligible employees are expected to make their decision by early December, with those who accept the offer scheduled to leave Microsoft at the end of the year.

Is AI investment behind the move?

Microsoft's official announcement does not directly identify artificial intelligence spending as the reason for the Voluntary Exit Offer.

However, the programme comes at a time when Microsoft is investing heavily in AI infrastructure and data centres. Reuters reported that Microsoft has forecast around $175 billion in capital expenditure for 2026, with a significant portion linked to its AI infrastructure expansion.

Microsoft had approximately 223,000 full-time employees as of June 30, 2026. That means roughly 60,000 employees are potentially eligible for the new offer—more than one-quarter of its workforce at that point. This does not mean that all eligible employees will leave.

Microsoft has already reduced its workforce this year

The latest offer follows another voluntary workforce-reduction programme introduced earlier in 2026.

Microsoft previously offered a Voluntary Retirement Program to approximately 8,750 US employees. More than 30% of those eligible accepted the offer, according to reports.

The company also eliminated around 4,800 roles earlier this year, with significant reductions affecting areas including Xbox and commercial operations.

A major workforce shift for Microsoft

The new Voluntary Exit Offer highlights Microsoft's broader effort to reshape its workforce around changing business priorities and the rapid expansion of AI.

Rather than announcing another company-wide round of mandatory layoffs, Microsoft is giving a large group of employees the choice to leave with financial support. The final number of departures will depend on how many eligible workers accept the offer.

The move comes as Microsoft seeks to balance its workforce and operating costs with the enormous investment required to compete in the global AI race.