Microsoft is launching a vast voluntary departure program that could profoundly change its workforce. Announced on October 26, this device is aimed at approximately 60,000 employees, or more than a quarter of the global workforce. Several strategic divisions are affected, including Windows, Copilot and Xbox. Eligible employees will be able to leave the company with compensation and professional support. This initiative comes at a time when the American giant increases its investments in artificial intelligence while continuing its internal reorganization.
A voluntary departure program open to 60,000 employees
The new system, called Voluntary Exit Offer (VEO), affects four countries: the United States, Canada, the United Kingdom and India. France is not among the selected territories. Microsoft, which had 223,000 employees as of June 30, 2026, is offering around 27% of its employees the opportunity to voluntarily leave the company. The offer is aimed at employees belonging to professional levels 70 and below of their internal classification, which includes both engineers and experienced managers.
in a message to employeesAmy Coleman, Microsoft’s chief human resources officer, explains that she wants to offer more flexibility to employees considering a new career direction. The group provides financial support as well as resources to facilitate their retraining or job search. Applicants must make their decision in early December and are expected to leave the country before the end of the year. The precise compensation conditions may vary by country and individual situations.
Microsoft has not set any public targets for the number of releases. The 60,000 employees mentioned only represent people who are likely to benefit from the program. Therefore, the actual number of candidates could be significantly lower, especially as certain teams are excluded from the system based on the needs of the company.
Copilot, Windows and Xbox: strategic divisions also affected
The list of activities in question reserves some surprises. In particular, Microsoft is opening voluntary exits in Copilot, CoreAI, AI Experiences, Windows and its division dedicated to devices. Participating organizations also include human resources and financial services.
The presence of teams specialized in artificial intelligence is especially striking. Microsoft has made Copilot one of the main drivers of its development, with increasingly deep integrations into Windows, Microsoft 365 and its professional applications. In early October, the group presented new AI agents for Windows, capable of interacting directly with the operating system and performing certain actions on behalf of the user. Employees working on these technologies will now be able to choose to leave, even as Microsoft looks to accelerate their rollout.
The situation is equally special on the Xbox side. The video game sector is going through a period of great transformation, marked by restructuring, studio closures and the abandonment of several projects. Under the leadership of Asha Sharma, Microsoft is looking to streamline its operations and focus its investments on the most promising franchises. A new wave of layoffs at Xbox was already planned for September, following job cuts that began during the summer.
The arrival of the voluntary departure program could accentuate this transformation. Affected employees will have the opportunity to leave their positions with support, while Microsoft will be able to reorganize certain teams without systematically imposed layoffs.
However, not all activities are in the same boat. Sales, marketing, cybersecurity and activities related to quantum computing teams are especially excluded from the program. Data center infrastructures, essential for Azure expansion, are also not affected under the same conditions. Microsoft favors a differentiated approach, in which each division can determine which functions it wants to maintain or reorganize.
Microsoft seeks to control costs despite solid growth
This new operation comes just a few months after a first exit program launched in spring. These were approximately 8,750 US employees who met certain age and seniority criteria. More than 30% of eligible people accepted the proposal, allowing Microsoft to reduce its workforce by several thousand positions. The group subsequently announced an additional 4,800 job cuts in July, mainly in commercial activities and video games.
The multiplication of these measures contrasts with Microsoft’s financial results. During its last fiscal quarter, ended in June, the group recorded almost $90 billion in revenue, up 18% year over year. Azure and AI services continue to support this growth, even as the Xbox division faces further headwinds.
The real challenge now is on the spending side. Microsoft plans approximately $175 billion in investments by calendar year 2026, primarily to expand its computing capabilities. Data centers require thousands of specialized processors, increasingly efficient networking equipment, and electrical infrastructure capable of powering gigantic facilities. This expansion also affects France, where Microsoft is preparing in particular a data center near Mulhouse, which represents an announced investment of two billion euros.
Reducing personnel costs would allow the group to create additional room for maneuver, without necessarily stopping its hiring in professions considered priority. Microsoft, however, has not established a direct financial link between its new exit program and the financing of its artificial intelligence infrastructures. The company places greater emphasis on the need to adapt its equipment to the rapid evolution of its activities and needs.
The coming weeks will allow us to measure the reception that this offer will have. Microsoft will also publish its new quarterly results on October 28, paying special attention to the growth of Azure and the weight of investments in AI. The number of employees who have accepted the program will be known once applications close in December. The departures could lead to further reorganizations in several Windows, Copilot and Xbox teams, three activities whose projects remain essential to Microsoft’s strategy.
