Microsoft to Lay Off Employees in 2026: Buyout Plan Extended to India and Vice President Level, Launched a Few Days Before Financial Report

According to a source familiar with the plan, cited by CNBC, Microsoft is attempting to provide financial support for its ambitious AI initiative and has offered exit packages to more than a quarter of its employees.

Reports indicate that approximately 60,000 employees in the United States, Canada, India, and the United Kingdom are eligible for a new voluntary severance compensation program. This accounts for about 27% of Microsoft's total workforce of 223,000 employees.

The scope of application has now been extended to the vice president level, whereas in the retirement plan from April of this year, the eligibility was only up to the senior director level. Reports indicate that in the April plan, over 30% of eligible U.S. employees chose to accept it.

If the acceptance rate this time is similar, the number of employees leaving may be around 18,000.

Employees must make a decision by early December and leave the company by December 31st.

At the time of this announcement, Microsoft's quarterly capital expenditure had exceeded $50 billion, which is higher than the $34.9 billion in the same period last year.

Microsoft will announce its quarterly earnings on Wednesday.