Microsoft's buyout offer to 60,000 employees: what to check first

Bigger the ship, bigger the lifeboats.

Microsoft is offering 60,000 employees money to leave. Meanwhile, it's preparing to spend $175 BILLION on AI infrastructure this year.

So, the GPUs get a five-year investment plan while the humans get an exit package.

Who the buyout covers

On October 26, Microsoft announced a voluntary buyout program covering roughly 27% of its global workforce. Eligible employees work across the US, Canada, India and UK, at level 70 and below. That includes some general managers and VPs.

The teams working on Copilot, AI experiences, Xbox, Windows, finance and HR are among those included. Some data-center, sales, marketing and security teams are excluded.

So yes, even the people building the AI products are being offered a way out.

What came before it

To be clear, Microsoft isn't firing 60,000 people. Those employees can choose whether to accept a package with financial support and career-transition resources. The company had offered an early retirement program which was offered to roughly 8,750 employees. More than 30% accepted. Microsoft then cut another 4,800 jobs in July, after more than 15,000 job cuts in 2025.

Microsoft says its latest offer helps teams adapt to changing needs. It also says layoffs remain an option.

Meanwhile, Reuters reports that Microsoft expects $175 billion in capital expenditure in calendar year 2026, largely driven by AI infrastructure. That's some serious cash.

If you're considering a package

For CTOs, VPs of Engineering and other senior tech leaders, the message is getting hard to ignore. A company can have enormous demand for its technology and still decide it needs fewer people in certain parts of the organization.

If you're considering one of these packages, let me be responsible and spell out the obvious: Check the actual severance terms, equity vesting, healthcare, taxes and any restrictions on future employment. And start mapping your next role before the deadline, not after your last day.

We're already working with both past and current Microsoft employees for landing their next role. If you're in the market as well, and want someone to land you qualified interviews without you having to do anything, book a call with my team.