Microsoft Opens the Exit Door to 60,000 Staff Days Before Earnings

Microsoft is offering voluntary buyouts to about 60,000 employees. The time-limited program covers staff at level 70 and below in the US, Canada, India, and the UK.

The offer arrives just before Microsoft reports fiscal first-quarter results on Wednesday. Investors will use that report to judge whether the company’s AI spending is starting to pay off.

Microsoft Buyouts Reach Copilot and Xbox, but Not Security Teams

Chief People Officer Amy Coleman announced the program in a memo to staff. The eligible pool equals more than a quarter of the 223,000 full-time staff Microsoft reported on June 30.

A source told Reuters that teams in AI experiences, Copilot, Xbox, and Windows + Devices qualify. Marketing, commercial business, and security teams sit outside the offer.

Coleman presented the program as an option for employees already weighing a move.

“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs,” the memo read.

The memo lists no payment amounts. Employees reportedly have until early December to decide, with exits planned for the end of the year.

It marks the third workforce move of 2026. Microsoft offered buyouts to about 9,000 US employees earlier this year, then cut 4,800 jobs in July.

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Wall Street Has Punished Microsoft Beats Before

Microsoft reports fiscal first-quarter 2027 results after Wednesday’s close. BeInCrypto’s preview puts estimates near $4.71 in earnings per share on about $90.63 billion in revenue.

Microsoft shares closed 1.54% higher at $532.60 on Monday. Year-to-date, the stock is up 10.3%.

Beating estimates may not be enough. Microsoft topped forecasts in January, yet its shares fell 10% to $433.50 the next day. The drop erased $357 billion, the company’s largest one-day loss in market value.

Meta faced similar pressure in July. AI infrastructure spending, legal charges, and severance costs cut its operating margin to 31% from 43%.

Microsoft’s own spending keeps climbing. The company has forecast $175 billion in capital expenditure for calendar 2026. 

Wednesday’s report will test Azure against Microsoft’s guidance of 44% to 45% growth. The call may also show whether a buyout charge lands in the December quarter. 

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