Gotrade News - Microsoft (MSFT) is offering voluntary buyouts to about 60,000 employees, more than a quarter of its workforce, in a move to contain costs, according to NBC News.
The offer lands two days before Microsoft reports fiscal first-quarter results after Wednesday's close, with analysts expecting EPS of $4.71, per Zacks.
Microsoft confirmed the offer to TechCrunch on Monday, and Chief People Officer Amy Coleman set out the terms in a note to employees. The company had 223,000 full-time employees globally as of June 30, per NBC News, citing its annual filing.
Who Is Eligible for Microsoft's 60,000-Worker Buyout?
Employees at level 70 and below in participating teams in the United States, Canada, India and the United Kingdom can take the offer, according to NBC News.
That ceiling applies to the vice president level, as reported by KUOW, and the heads of each organization at Microsoft decided which teams take part.
Participating teams include AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, per NBC News, citing a source familiar with the matter.
Marketing, commercial business and security are excluded, the same source said, while TechCrunch reported that some employees working in data centers, sales and marketing are left out.
The terms will be comparable to Microsoft's standard severance package, a company spokesperson told KUOW. That package typically includes base pay for a period based on tenure, stock options granted over time, health care and career planning services, per KUOW.
"This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support." Amy Coleman, Chief People Officer, Microsoft, in a note to employees quoted by TechCrunch
Coleman also wrote that the offer "gives participating organizations another way to adapt their workforce to changing needs," per NBC News. "The Voluntary Exit Offer is new for us," she added, according to TechCrunch. "We'll learn from it."
Earlier Microsoft Retirement Buyout Drew More Than 30% Uptake
Earlier this year, Microsoft offered buyouts to retirement-age employees, and more than 30% of the roughly 8,750 eligible workers accepted, per TechCrunch. NBC News described that earlier offer as covering about 7% of Microsoft's U.S. workforce, or about 9,000 employees.
Microsoft expects this broader round of buyouts to have a smaller adoption rate, according to KUOW. A company spokesperson also told KUOW that artificial intelligence is not driving the buyout programs.
The offer follows Microsoft's July announcement that it would cut 4,800 jobs, or about 2.1% of its global workforce, per NBC News. The company has forecast $175 billion in capital expenditures for the 2026 calendar year, NBC News reported.
Microsoft Q1 Earnings Preview: $90.58 Billion Revenue Expected
Microsoft's fiscal first-quarter earnings conference call is scheduled for Wednesday, October 28, 2026, according to the company's investor relations page, and NBC News reported that Microsoft's first-quarter results will come after markets close that day.
The Zacks consensus EPS estimate has moved up by a penny to $4.71 over the past 30 days, 14.04% above the year-ago quarter, per Zacks Investment Research.
Ahead of the earnings report, the scorecard below sets the Zacks consensus against Microsoft's own revenue outlook, as reported by Zacks.
| Metric | Figure | Basis |
|---|
| Revenue | $90.58 billion | Zacks consensus estimate |
| Revenue outlook | $89.85 billion to $90.95 billion | Microsoft's expectation, per Zacks |
| EPS | $4.71 | Zacks consensus estimate, up 14.04% year over year |
| Intelligent Cloud revenue | $40.95 billion to $41.25 billion | Projected, up 33% to 34%, per Zacks |
MSFT Market Data
| Ticker | Close | Daily change | Market cap |
|---|
| MSFT | $532.60 | +1.54% | $3.95 trillion |
Regular-session close on October 26, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. Market cap: that close times the shares outstanding on the latest 10-Q or 10-K cover (SEC EDGAR).
Microsoft Guides Q1 Revenue Up to $90.95 Billion
Microsoft expects total company revenues between $89.85 billion and $90.95 billion for the quarter, according to Zacks, which sees Intelligent Cloud as the likely growth leader. Azure growth is expected to have accelerated to roughly 45% at constant currency, aided by fleet efficiency gains, per Zacks.
Microsoft has also projected fiscal first-quarter capital expenditures of more than $50 billion, Zacks reported.
MSFT Shares Up About 10% in 2026 Before Wednesday's Report
Microsoft shares had gained about 10% this year and were up about 1% on Monday, the day the buyout offer was announced, per NBC News. Over the past six months, MSFT returned 23.5%, compared with 4.5% for the Zacks Computer and Technology sector, according to Zacks.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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