Is Microsoft preparing for more layoffs? 60,000 employees just got buyout offers

windowscentral.com Oct 26, 2026

Is Microsoft preparing for more layoffs? 60,000 employees just got buyout offers

Curated by Shubham · TechCapsules · Oct 26, 2026

AI-summarised brief · reviewed before publication

Sean Endicott writes for Windows Central, covering Windows 11, Surface hardware, Microsoft 365, AI, apps and the broader Windows ecosystem. Since 2017 he has produced over a thousand articles on Microsoft’s software and hardware, including breaking news, analysis and opinion. His reporting spans Windows updates, Surface launches, Microsoft 365 changes and the company’s AI focus. Endicott also authors the weekly “Windows Wrap” column, curating the most significant stories and examining their relevance to Windows and the PC market. He holds a First Class degree in Broadcast Journalism from Nottingham Trent University and previously worked in journalism and media production. Outside tech, he is an award‑winning American football coach in Nottingham, locally, named BAFCA Youth Coach of the Year in 2024.

💡 Why It Matters

· Windows Central’s seasoned Microsoft beat gives readers a uniquely informed lens on any upcoming corporate shifts.

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New Surface Laptop Ultra firmware update fixes screen flickering and long reboot…

Microsoft released its first firmware update for the Surface Laptop Ultra on October 22, addressing key issues reported since the device’s launch. The update, titled “Microsoft Corporation System Hardware Update (200.0.7.0),” fixes long reboot times and eliminates screen flickering, though ghosting remains. Additional improvements include performance boosts and fewer unexpected restarts. The Ultra, priced at $2,599 and powered by RTX Spark, is expected to receive firmware updates for six years until 2032.

💡 Rapid firmware fixes demonstrate Microsoft’s commitment to user experience and help maintain confidence in its new high‑performance Surface line.

thehackernews.com · Oct 26

Attackers Use Microsoft Teams IT Support Scams to Deploy Malware and Ransomware

Cybersecurity researchers report a widespread social‑engineering campaign that exploits Microsoft Teams’ external chat feature to impersonate IT support and deliver malware. Attackers create throwaway Microsoft 365 tenants, often using the .onmicrosoft.com domain or paid .top TLDs, and display names that mimic legitimate help desks. Victims receive mass email “newsletter” spam, then a Teams message offering urgent assistance, leading to remote‑access tools such as Quick Assist or TeamViewer. The remote session installs backdoors, harvests Active Directory data, and deploys Chaos ransomware.

💡 The attacks reveal how attackers turn a trusted collaboration platform into a low‑effort initial‑access vector, bypassing traditional security controls and forcing organizations to scrutinize external Teams connections.

gamesradar.com · Oct 26

Microsoft is looking to cut over a quarter of the whole company…

Microsoft announced a voluntary buyout program offering up to 60,000 employees—about 27% of its workforce—financial support and career planning to leave the company. The initiative follows earlier buyouts that attracted roughly 3,000 participants and adds to layoffs of 6,000 in May 2025, 9,000 in July 2025, and 4,800 in July 2026. Xbox has been heavily impacted, with 1,600 positions cut in 2026 and another 1,600 pending. CEO Satya Nadella praised the “streamlining” as a positive step.

💡 The scale of the buyout underscores Microsoft’s aggressive restructuring to prioritize AI, reshaping its talent landscape and signaling a shift in corporate strategy.

eurogamer.net · Oct 26

Amid sweeping layoffs at Xbox and massive AI investments, Microsoft introduces a…

Microsoft announced a voluntary exit offer to approximately 60,000 employees—about 25 % of its workforce—across Canada, India, the UK, and the US. Eligible staff at level 70 or below can receive financial support and career‑planning resources to leave before potential layoffs. The program mirrors standard severance terms, with employees deciding by early December. Xbox’s earlier 3,200‑job cut and studio restructures set the backdrop for this broader workforce realignment amid heavy AI spending.

💡 The offer signals Microsoft’s strategic shift to streamline costs while maintaining flexibility in high‑growth AI areas. It also reflects a broader industry trend of pre‑emptive buyouts to manage talent and budget pressures.

windowslatest.com · Oct 26

Microsoft confirms Windows 11 26H2 is now available for everyone, and it…

Microsoft confirmed that Windows 11 26H2, the 2026 feature update, is now fully available for all devices running Windows 11 25H2 and 24H2. The update, released on September 29, can be installed automatically if the “Get the latest updates as soon as they’re available” setting is enabled. It is a lightweight enablement package—174 KB—that finishes in under five minutes. The rollout also resets the support lifecycle, granting two years of consumer support and an additional year for Enterprise and Education editions.

💡 The swift, low‑impact update ensures users on older builds receive a fresh support window without a major platform shift, reducing security gaps and extending device viability.

commandline.microsoft.com · Oct 26

When AI rewrites millions of lines of code, verification becomes essential

Microsoft is developing AI agents that rewrite millions of lines of code in its largest codebases, such as Windows and Azure. The agents handle tasks ranging from moving a 400‑million‑line repository to a new compiler toolchain to converting legacy C/C++ modules into Rust, increasingly backed by formal verification. Since 2024 the company has paired the agents with static analysis, testing and formal methods to ensure that massive, automated changes preserve behavior, security and architectural intent. By mid‑2025 the agents evolved from simple LLM subroutines to sophisticated planners, shifting engineers’ role to building verification tools that guide the agents. A small team of migration experts now curates knowledge bases, approves fixes and directs human attention to ambiguous cases, making large‑scale code migration practical.

💡 By offloading bulk refactoring to AI while concentrating human review on strategic decisions, Microsoft shows a path for enterprises to modernize legacy code without overwhelming engineers.