Short answer: On October 26, 2026, Microsoft opened a voluntary exit program to about 60,000 employees, more than a quarter of its global workforce, while forecasting about $175 billion of capital expenditure for 2026, mainly on AI infrastructure and data centers (Gulf Business). The 60,000 figure is the number eligible, not a layoff target. The move shows how hyperscalers are shifting budget from headcount to compute, and why data center leadership has become one of their most critical capabilities.
Eligibility covers employees at internal level 70 and below, including some senior executives, in divisions such as Windows, Xbox, Copilot, AI-related operations and finance. Sales, marketing and selected engineering functions are excluded. Packages follow existing severance terms and include continued stock vesting, healthcare for a set period and career transition support. Chief people officer Amy Coleman described the program as giving employees "a new choice to make that transition now with support."
Microsoft's workforce has shrunk while its infrastructure budget has grown. The company cut about 4,800 jobs in July 2026 and more than 15,000 in 2025, yet expects to spend about $175 billion on capex this year. The money is going into buildings, power and chips, and the people who turn that spending into working capacity are the data center leaders: construction, power procurement, critical operations and supply chain executives.
For operators and contractors, the signal is clear. Hyperscalers will keep pushing for faster delivery with leaner corporate teams, which shifts more execution responsibility onto data center developers, colocation partners and construction firms. See data center construction leadership in 2026 and why power leaders are the critical hire.
About 60,000 employees are eligible for Microsoft's voluntary exit program announced October 26, 2026, more than a quarter of its global workforce. Microsoft has not said how many it expects to accept.
Microsoft forecasts about $175 billion of capital expenditure for calendar 2026, mainly for AI infrastructure and data centers.
Employees at internal level 70 and below in the US, Canada, the UK and India, in divisions including Windows, Xbox, Copilot, AI-related operations and finance. Sales, marketing and selected engineering functions are excluded.
Spending is moving from people to infrastructure, which raises the stakes on the executives who build, power and run that infrastructure.
