Microsoft offers voluntary separation to 60,000 employees, including Copilot-related roles, while excluding some data center positions.

Beating AI News Flash: Microsoft announced it is offering voluntary severance to around 60,000 employees across parts of the U.S., Canada, the U.K., and India, accounting for 27% of its total global workforce. The affected teams include Xbox, Windows, finance, human resources, as well as Copilot and AI experience groups, while some data center roles, sales, and marketing departments are excluded. There are no age or tenure thresholds for applications, with some vice president-level staff also eligible. Compensation follows standard severance packages, and employees must decide by early December to leave by the end of the year. This marks Microsoft’s second voluntary separation program this year. In spring, it offered early retirement to around 8,750 employees meeting age and tenure criteria, with roughly 30% accepting. Microsoft expects a significantly lower acceptance rate for this round, though it did not disclose a target number of departures. Between fiscal 2022 and 2026, Microsoft’s revenue grew about 67% from $198.3 billion to $331.8 billion, while its full-time headcount only increased slightly from 221,000 to 223,000. Meanwhile, Microsoft projects its 2026 calendar year capital expenditure will reach around $175 billion. Continued heavy investment in AI infrastructure has led even AI product teams to be included in the workforce reduction efforts.