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Microsoft extends voluntary exit scheme to 60,000 workers globally

The technology giant has launched a voluntary severance programme affecting staff across multiple divisions, with Indian technology teams among those eligible. The move comes as major tech companies accelerate artificial intelligence investments while grappling with workforce implications.

LSN India · 27 October 2026

Microsoft extends voluntary exit scheme to 60,000 workers globally

Microsoft has announced a voluntary exit package programme covering approximately 60,000 employees worldwide, as the company recalibrates its workforce amid rapid technological shifts. The severance scheme extends to workers across various business units, including teams based in India, marking a significant restructuring effort for the software and cloud computing leader.

The voluntary nature of the programme offers affected staff financial incentives to leave the company, reflecting industry-wide trends as technology firms pivot toward artificial intelligence and automation technologies. Microsoft joins peers including Google, Amazon, and Meta in implementing workforce adjustments even as these companies maintain substantial budgets for AI research and development initiatives.

India's technology sector, which supplies significant talent pools for major technology corporations, faces mounting uncertainty as global firms reassess headcount requirements. The extension of Microsoft's voluntary exit scheme to Indian teams underscores how artificial intelligence adoption is reshaping employment patterns across the technology industry globally.

Tech industry observers note the paradox of heavy AI investment alongside workforce reductions, raising questions about the technology's long-term employment implications. As companies automate functions and streamline operations, workers in regions like India that have traditionally benefited from offshore technology hiring face increased pressure.