Microsoft Dangles Exit Packages for 60,000 Staff Before Earnings

Around 60,000 Microsoft employees are being offered voluntary buyouts. The program is open for a limited time to staff at level 70 and below in the US, Canada, India, and the UK.

Microsoft will release fiscal first-quarter results on Wednesday, and the buyout plan has landed just days before that update. Investors will be looking at the numbers to decide whether the company's AI spending is beginning to pay off.

Buyout Program Reaches Copilot and Xbox but Leaves Out Security Teams

The buyout plan was announced by Chief People Officer Amy Coleman in a memo sent to employees. Those eligible make up more than a quarter of the 223,000 full-time workers Microsoft listed on June 30.

Teams in AI experiences, Copilot, Xbox, and Windows + Devices qualify, according to a source who spoke to Reuters. The offer does not extend to marketing, commercial business, or security teams.

Coleman described the initiative as an option for employees who are already considering a departure.

“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 said.

No payment amounts appear in the memo. Staff reportedly have until early December to decide, with their departures scheduled for the end of the year.

This is the third workforce move Microsoft has made in 2026. Earlier this year, the company offered buyouts to about 9,000 US employees, and in July it cut 4,800 jobs.

Investors Have Punished Microsoft After Past Earnings Beats

Microsoft is scheduled to report fiscal first-quarter 2026 earnings after Wednesday's market close. In BeInCrypto's preview, the projected figures are around $4.71 in earnings per share and about $90.63 billion in revenue.

Microsoft shares closed Monday up 1.54%, at $532.60. The stock has gained 10.3% so far this year.

Exceeding expectations may not be enough. Microsoft beat forecasts in January, but the next day its shares fell 10% to $433.50. The decline wiped out $357 billion, the largest one-day drop in market value the company has ever recorded.

Meta dealt with similar pressure in July. AI infrastructure spending, legal charges, and severance costs brought its operating margin down from 43% to 31%.

Microsoft's own spending is still growing. For calendar 2026, the company has projected capital expenditure of $175 billion.

Wednesday's report will show whether Azure can deliver the 44% to 45% growth Microsoft has guided for. The call may also reveal whether a buyout charge shows up in the December quarter.