Microsoft offers a quarter of its workforce voluntary severance while shielding AI-critical teams
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Microsoft is offering voluntary severance packages to approximately 60,000 employees, representing roughly a quarter of its global workforce. This initiative aims to adapt the company's staffing levels to changing operational needs while protecting critical AI-related divisions. The program applies to staff in the United States, Canada, India, and the UK at the vice president level or below. Key strategic areas such as data centers, cybersecurity, quantum computing, and sales are excluded from these cuts to shield AI-critical teams. Conversely, departments including Xbox, Windows, Copilot, and Finance are fully included in the reduction effort. This marks Microsoft's second workforce adjustment program in 2026, following earlier buyouts and layoffs earlier in the year. Despite significant revenue growth, the company's total headcount remains stable at around 223,000 employees. CFO Amy Hood indicated that Microsoft plans to invest approximately $170 billion in AI infrastructure this year.
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