Microsoft offers voluntary severance to 60,000 employees, including Copilot roles, excluding some data center positions.

Beating AI News Flash: Microsoft has announced that it is offering voluntary departure to approximately 60,000 employees in select divisions across the United States, Canada, the United Kingdom, and India, equivalent to 27% of its global workforce.

The list includes not only Xbox, Windows, finance, and human resources departments, but also the Copilot and AI experiences teams. Some data center roles, as well as sales and marketing departments, were excluded. There are no age or tenure thresholds this time, and some vice president-level employees are also eligible to apply. Compensation largely follows the standard severance package, and employees need to decide by early December and leave by the end of the year.

This is already Microsoft's second voluntary departure program this year. In the spring, it offered early retirement to approximately 8,750 employees who met age and tenure criteria, and about 30% ultimately accepted. Microsoft expects the acceptance rate for this round to be significantly lower, but did not disclose a target number of departures.

From fiscal 2022 to fiscal 2026, Microsoft's revenue grew from $198.3 billion to $331.8 billion, an increase of about 67%, while its full-time headcount rose only from 221,000 to 223,000. At the same time, Microsoft expects capital expenditures to reach approximately $175 billion in calendar year 2026. AI infrastructure continues to burn cash, and even AI product teams have been included in the scope of workforce reduction options.