Microsoft is offering voluntary severance packages to approximately 60,000 employees—26.9% of its workforce—as the company restructures to prioritize AI development while avoiding mass layoffs. The offer targets vice presidents and individual contributors across the United States, Canada, India, and the United Kingdom.
The severance program covers divisions including Xbox, Windows, Copilot, and Finance. However, critical infrastructure areas remain unaffected: data centers, sales, and marketing teams are excluded from the offer. This targeted approach allows Microsoft to reduce operational costs and reallocate resources toward artificial intelligence initiatives without triggering widespread involuntary terminations.