Microsoft Layoffs 2026: Voluntary Exit Offer, India Impact and Hiring

Microsoft Layoffs 2026

Last updated: 27 October 2026

On 26 October 2026, Microsoft offered voluntary exits to about 60,000 employees, roughly a quarter of its workforce, and India is included. This comes after about 4,800 layoffs in July. Here is what we know so far, and what is still unclear.

The short version: Microsoft cut more than 15,000 jobs in 2025 and about 4,800 in July 2026. On 26 October 2026 it made a voluntary exit offer to about 60,000 staff in the US, Canada, the UK and India. Employees have until early December to decide. Microsoft is still investing in India: $17.5 billion announced for 2026 to 2029.

Microsoft layoffs timeline

WhenWhat happened
2025More than 15,000 jobs cut, including about 6,000 in May and about 9,000 in July.
Spring 2026First voluntary retirement programme, US only. About 30% of 8,750 eligible employees accepted.
Jul 2026About 4,800 layoffs (around 2% of staff). Hundreds more followed in September.
26 Oct 2026Voluntary exit offer to about 60,000 employees in the US, Canada, the UK and India, up to senior levels. Teams include Xbox, Windows, Copilot and Finance; sales and some engineering groups are excluded. Decide by early December, leave by the end of 2026.

What it means for India

India is explicitly part of the October offer. Microsoft India has about 23,000 employees, but the company has not said how many are eligible. Reported, not confirmed: an India deadline of 1 December and a last day of 31 December, with severance of one week's base pay per six months of service for most levels, and two weeks for levels 65 to 67.

A voluntary exit is not a layoff: you can say no. But Microsoft has said further layoffs are still possible, so think about the offer carefully rather than assuming you are safe if you decline.

Is Microsoft still hiring?

Microsoft announced $17.5 billion of investment in India for 2026 to 2029 in December 2025, and has pledged AI skills training for 20 million people by 2030. Hiring continues, but expect it to lean towards AI and cloud. Global headcount was about 223,000 in June 2026.

Severance: what has been reported

The October offer is described as matching standard severance: base pay by tenure and level, continued stock vesting, healthcare for a set period and career transition support.

Should you take a voluntary exit offer?

Questions to answer first: how many months of pay does the package give you; what happens to unvested stock; how long a search in your field is taking right now; and whether your team is likely to be cut anyway. If you have a strong offer elsewhere or were planning to move, a package can be a good bridge.

Laid off, or worried you might be?

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If you are affected: what to do this week

  1. Read the separation letter carefully before signing. Check your last working day, severance, notice pay and leave encashment.
  2. Ask for your full and final settlement timeline in writing, plus your relieving and experience letters.
  3. Check your gratuity if you have close to 5 years of service. Our gratuity calculator shows what you are owed.
  4. Move or keep your PF; do not withdraw it in a hurry. You can transfer it to your next employer.
  5. Update your resume and LinkedIn the same week. Run your resume through a free ATS check.
  6. Tell your network. Referrals still move faster than cold applications.

We track every major round in our India layoffs tracker 2026. Numbers marked "reported" come from news outlets and have not been confirmed by the company.

FAQs

Is Microsoft laying off employees in India?

Microsoft has made a voluntary exit offer that includes India. About 4,800 people were laid off globally in July 2026.

How many Microsoft employees got the exit offer?

About 60,000, roughly a quarter of the workforce, in the US, Canada, the UK and India.

What is the Microsoft voluntary exit offer?

An offer to leave with a package similar to standard severance. Employees decide by early December and leave by the end of 2026.

Is Microsoft still hiring in India?

Yes. Microsoft announced $17.5 billion of investment in India for 2026 to 2029.

What is the deadline for Microsoft India employees?

1 December has been reported but not confirmed by Microsoft.

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