EXPLAINED | Why Is Microsoft Offering 60,000 Employees Money to Leave?

EXPLAINED | Why Is Microsoft Offering 60,000 Employees Money to Leave?

By Sunny K S
Publication Date: 2026-10-27 02:32:00

Why would a company making record profits pay people to leave?

Microsoft finished the financial year ended June 2026 with revenue of $331.8 billion, up 18%, and operating income of $155.2 billion, up 21%. Then, on October 26, it announced a Voluntary Exit Offer across participating teams in India, the US, the UK and Canada. Approximately 60,000 employees are eligible.

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The tension is striking: a growing business is offering employees financial support to leave.

Understanding it requires separating three things: Microsoft’s financial health, its spending priorities and the work it wants its employees to do.

FIRST, IS MICROSOFT CUTTING 60,000 JOBS?

That is not what has been announced.

60,000 is the approximate number eligible to consider the offer. It is not an announced departure total. Against Microsoft’s disclosed workforce of 223,000 on June 30, that represents roughly 27%. That…