Microsoft offers exit deals to 60,000 staff as it pours billions into AI

Microsoft — the world's biggest software company — announced on Monday, October 26, 2026, that it is offering about 60,000 employees a voluntary exit, with financial support and career planning help. That is more than a quarter of its 223,000 employees worldwide.

According to Reuters, the company wants to contain costs while spending billions of dollars building AI data centres and buying AI chips. Microsoft has forecast $175 billion in capital spending for calendar year 2026 — and investors are increasingly asking whether the returns on that huge investment will justify it. The company is due to report its first-quarter results later today, Wednesday, October 28.

The offer covers staff in its AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices teams, in four countries: the United States, Canada, the United Kingdom and India — up to level 70, including vice-president level. Marketing, commercial business and security teams are excluded. According to CNBC, eligible employees have until December to decide, and those who accept will leave on December 31, 2026. Microsoft has set no target for how many will leave.

"This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support," wrote Amy Coleman, Microsoft's chief people officer, in a message to staff. "It also gives participating organizations another way to adapt their workforce to changing needs."

This is the second time in 2026 that Microsoft has made such an offer. In April, it offered buyouts to about 7 percent of its US workforce — around 9,000 people — and more than 30 percent of those eligible took it. In July, the company cut 4,800 jobs, about 2.1 percent of its global workforce.

And two weeks ago, we reported that Nairobi staff said Microsoft is closing its Africa Development Centre engineering hub — putting nearly 400 jobs at risk — although the company has not officially confirmed the closure. The current offer does not directly cover Kenyan staff, since it applies to four countries only, but it shows the same direction of travel: big tech companies are cutting costs while pouring billions into AI.

It is also worth knowing that Coleman's memo does not itself mention AI spending or costs — the link between this offer and AI investment comes from press reporting and analysts, not from an official company statement.

What does this mean for you?

Students and tech graduates: The job market is changing. Big companies are cutting staff while spending billions on AI — knowing how to use AI tools is becoming as important as knowing how to code. If you are studying computer science or want to enter tech, learn to use Copilot, ChatGPT and other tools every day, not as entertainment but as a work skill.

Developers and tech entrepreneurs: Remote-work opportunities may grow — when companies look to cut costs, they often look for talent outside the US and Europe. But competition is also rising, because AI itself now does much of the work people used to do. Build skills AI cannot do alone: understanding customers, solving hard problems and leading teams.

Small business: Microsoft is cutting its own costs, but its AI tools — like Copilot — remain available. The lesson applies to your business too: use AI for routine work, such as answering customers, preparing invoices and organising accounts, to cut costs without cutting your own staff.

Parents: If your child is studying technology, this trend shows the job market will look different from today's. AI skills combined with human skills — communication, creativity and leadership — are the combination that protects the jobs of tomorrow. Help your child learn both.