Microsoft offers large voluntary departure program
Microsoft has announced that it will offer a voluntary departure program to approximately 60,000 employees, which accounts for more than a quarter of its workforce. This program, although not explicitly linked to artificial intelligence (AI), is intended for employees at level 70 or lower. The announcement was made on October 26, 2026, by Chief People Officer Amy Coleman, who reported that the agreement provides financial support and career guidance to those considering leaving the company. Employees have until early December to make their decision, with the option to leave at the end of the year.
Although Microsoft does not reference the AI teams in the memo, there are indications that employees from the AI Experiences and Copilot teams are also part of this program. However, it is unclear which other teams are precisely participating in this voluntary program. According to sources, Xbox and Windows + Devices are among those included in the offer, while marketing and some other branches are excluded from the program. The offer is applicable to employees in the United States, Canada, India, and the United Kingdom, but not for workers in other countries, including the Netherlands.
Microsoft invests tens of billions in AI quarter after quarter, with $41 billion alone in the last quarter, and over $50 billion is even expected for the quarter ending in September. This capital is primarily used for the development of data centers and chips that are crucial for AI applications. Analysts point out that the cost savings from the staff shortage are likely intended to finance the heavy AI investments. However, Coleman emphasizes that the program is designed to enable organizations to adapt personnel to changing needs.
Microsoft's announcement raises questions about the impact of AI on the labor market, a topic that is also being discussed in the Netherlands. With plans from the Dutch government to eliminate 25,000 civil service jobs, it appears that AI is also associated with potential job losses here. However, Microsoft does not indicate whether the employees utilizing the departure program will be replaced by AI technologies, which contributes to the uncertainty surrounding the impact of AI on work.
Read the full article from AI Insider.
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