Microsoft offers buyouts as employees criticize its AI push

In a communication dated Oct. 26, 2026, Microsoft Executive Vice President and Chief People Officer Amy Coleman described the offer as a supported transition for eligible employees considering a future outside the company.[1] Microsoft said it is time-limited and voluntary, and includes financial support and career-planning resources for employees who leave.[1] Eligibility is limited to employees at level 70 and below in participating teams in Canada, India, the United Kingdom and the United States.[1] Microsoft said participation varies according to each business’s priorities, customer commitments and workforce needs.[1] Eligible employees were to receive an email linking to their offer details within hours of the announcement.[1]

The New York Times reported that the offer was extended to about 60,000 employees, more than a quarter of Microsoft’s workforce, and was the company’s second buyout that year.[2] The Times of India reported that sales and some engineering teams were excluded.[3] It also reported that accepted offers provide at least eight weeks of base pay, with the amount increasing according to employee level and tenure.[3] GeekWire reported that the package includes continued stock vesting, temporary health coverage and career-transition services, but not the extended health coverage offered in an earlier retirement program.[4] Employees had until Dec. 9 to decide and would leave on Dec. 31, according to The Times of India.[3]

A group of current and former Microsoft employees circulated an open letter criticizing the company’s AI push and calling for greater employee involvement in AI decisions.[5] The letter linked falling morale to increased AI investment, heavy workloads, reorganizations and fears of AI replacement.[3] Workers said they were pressured to use AI tools across nearly all parts of their jobs, often with little or no training.[3] The signatories said adopting AI created extra work as employees learned tools, corrected poor outputs and rolled back weak features.[3] They also argued that Microsoft research showed AI agents do not consistently prioritize user safety.[3]

Microsoft’s headcount stood at 223,000 in June, down 5,000 from a year earlier, according to The Times of India.[3] The publication also reported that Microsoft cut about 4,800 jobs in July 2026, including one-fifth of its Xbox workforce.[3] Two days after the buyout announcement, Microsoft posted quarterly revenue of $92.3 billion and profit of $36.6 billion, up 32%, the report said.[3] The company’s capital spending rose 30% to $45.2 billion, and it expected to spend about $170 billion that calendar year.[3] The letter separately called on Microsoft to recommit to becoming carbon negative, water positive and zero waste by 2030.[3]