Commentary: AI is not the real story in Microsoft job cuts, as voluntary exit offer covers about 60,000

Microsoft announced on October 26 a Voluntary Exit Offer (VEO) for about 60,000 employees, roughly a quarter of its workforce, across the US, Canada, UK and India. An April retirement programme offered to 8,600 US staff was accepted by about 30%. A commentary argues that AI is not the main driver of the cuts, which it links more to investment in AI infrastructure and correcting pandemic-era overhiring. A July 2026 Stanford Institute for Economic Policy Research brief found AI's effect on overall employment likely small for now.