In context: Microsoft’s surge in layoffs, which has affected tens of thousands of workers since 2023, accelerated earlier this year as the company focused on AI spending. Months after offering voluntary buyouts to a small percentage of its workforce, Microsoft has now expanded the practice to a scale that could dwarf previous rounds of layoffs in recent years.
Microsoft recently announced a new voluntary exit offer for employees at level 70 and below in certain countries. Sources told CNBC that this group includes about 60,000 workers, a significant increase compared to the tender offers that began in April.
The limited-time offer, which includes financial and employment support, is available to members of certain Microsoft organizations based in the US, Canada, India and the UK. The 60,000 eligible workers represent 27% of the 228,000 employees the company said it employed worldwide as of June 2025.
In a blog post announcing the program, Microsoft said it was learning from April’s offerings, which it described as a voluntary retirement program – the first in its 51-year history. The takeovers follow numerous rounds of layoffs in recent years.
While some of the eliminations came amid Microsoft’s efforts to reorganize its Xbox division following its acquisition of Activision Blizzard, AI spending is likely the biggest factor behind the push to offset costs. Investments in AI infrastructure helped Microsoft’s capital expenditures rise to nearly $35 billion in the September quarter of 2025 and to $50 billion in the same quarter this year.
Microsoft layoffs since 2023
| Date | Staff cuts reported | Main business areas affected |
|---|---|---|
| January 18, 2023 | 10,000 | Windows and Devices, Xbox, HoloLens, Recruitment and Marketing |
| January 25, 2024 | 1,900 | Activision Blizzard, Xbox, ZeniMax after completing ABK deal |
| 3rd–4th June 2024 | ≈1,000 (internal estimate) | Azure for Operators, HoloLens/Mixed Reality and other “moonshot” teams |
| September 12, 2024 | ≈650 | Xbox publishing and game studio support teams |
| Jan-February 2025 | ≈2,000 | Company-wide sorting out of “low performers” (in many cases no severance pay) |
| May 13, 2025 | ≈6,000 (Microsoft says “< 3% of employees”) | All regions; Focus on middle management, LinkedIn |
| June 2, 2025 | 305 | Roles at headquarters in Redmond, Washington; additional WARN layoffs following May cuts |
| July 2, 2025 | ≈9,000 (Microsoft says “< 4% of employees”) | Company-wide; Xbox, sales, management levels and other departments |
| April 23, 2026 (opened in May) | Voluntary exit is offered up to ≈8,750 | U.S. employees at the executive director level and below whose age plus length of service is 70 years or greater; certain sales employees excluded |
| Fiscal year 2027 (beginning July 6, 2026) | ≈4,800 | Biggest reset in Xbox history, five game studios sold |
| October 26, 2026 | Up to 60,000 people will be offered a voluntary exit | Employees from Canada, India, the United Kingdom and the United States at level 70 and below |
While it remains unclear how many of the eligible employees will accept Microsoft’s offer, another series of layoffs announced in July will eliminate 4,800 jobs over the course of fiscal year 2027. Before this week’s announcements, the total number of layoffs at Microsoft since 2023 was estimated to be over 40,000.
According to TrueUp, the number of layoffs across the tech sector has reached nearly 200,000 this year. In addition to Microsoft, the companies most affected include Amazon, Oracle, Meta, PayPal and Dell. While not all job losses are due to AI, this is the case at Meta as the company prepares to invest over $100 billion in the technology this year. TrueUp estimates that the number of layoffs in the tech industry will reach about 370,000 by the end of the year. That’s more than in recent years, but doesn’t quite reach the record of 430,000 in 2023.
