Chief People Officer Amy Coleman announced a voluntary severance program on Monday, October 26, 2026, targeting 60,000 employees. This figure represents one quarter of the global workforce, with eligibility spanning the , Canada, , and the UK.
The initiative marks Microsoft's second severance program of 2026 as the company seeks flexibility. By the end of June 2026, headcount had already dropped to 223,000. The firm aims to reduce costs to fund massive investments in data centers and AI hardware.
Microsoft estimates 2026 AI spending between $130 billion and $145 billion, nearly double 2025 levels. This shift follows co-founder ' warning about AI-driven job destruction, as the firm reallocates capital toward chips and emerging technologies.