Microsoft buyouts 2026: Which teams qualify, which departments are excluded and how many MSFT employees are eligible for the voluntary exit offer?

Microsoft buyouts: Microsoft is giving eligible employees a chance to leave the company with financial support as it looks to manage its workforce while continuing to invest heavily in artificial intelligence. Around 60,000 employees could qualify for the voluntary buyout, but workers in several departments will be left out.

The program, announced on Monday, October 26, covers employees in the United States, Canada, India and the United Kingdom at internal level 70 and below, said Amy Coleman, executive vice president and chief people officer. Those who receive an offer have until early December to decide whether to accept, with departures expected at the end of the year.

Which Microsoft Teams Are Included

Employees in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices are among those eligible, Reuters reported, citing a person familiar with the matter.


The offer excludes marketing, commercial business and security. Sales organizations, some engineering teams and certain corporate functions are also not participating, according to Business Insider.

Eligibility depends on the organization an employee belongs to as Microsoft is offering the program only to selected teams based on business priorities, customer commitments and workforce needs.

What Do Employees Need to Know About the Payout

Microsoft expects the new offer to have terms similar to its standard severance packages, a company spokesperson told Business Insider. Eligible employees will receive their individual terms by email.

Earlier this year, US employees affected by layoffs were offered at least 60 days of base pay while remaining on the payroll. Most could receive up to 39 weeks of base pay depending on their seniority and length of service.

The earlier packages varied by internal level. Employees at level 64 and below received one week of base pay for every six months of service, while those at levels 65 to 67 received two weeks for every six months, as per a Business Insider report.

How the Buyout Fits Into Microsoft's Workforce Changes

The new program follows a voluntary retirement offer made earlier this year to about 9,000 eligible employees, with eligibility based on age and tenure. Around one-third accepted, according to a person familiar with the outcome who spoke to Business Insider in June.

Microsoft had previously announced 4,800 job cuts in July as it restructured its Xbox gaming business and planned to divest up to five studios.

The company had 223,000 full time employees worldwide as of June 30, according to its annual filing. It has forecast $175 billion in capital expenditures for calendar year 2026 as it invests in AI infrastructure, including data centers and chips.

In her staff memo, Coleman said, "The Voluntary Exit Offer is new for us. We’ll learn from it," adding, "There is no one-size-fits-all approach for every team or every employee. These are a few of the ways we’re trying to meet different business needs while continuing to create opportunities for our own people to grow and contribute."