Microsoft is offering voluntary buyouts to about 60,000 employees, or more than a quarter of its global workforce, as the technology giant seeks to contain costs while funding its massive investments in artificial intelligence (AI).
The programme will cover eligible employees across several divisions, including AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, a source familiar with the matter told Reuters, requesting anonymity because the matter was private. Marketing, commercial business and security teams will be excluded.
The offer comes as Microsoft and other technology giants pour hundreds of billions of dollars into AI infrastructure, including data centres and chips, prompting investors to question whether the returns will justify the enormous spending.
Microsoft has forecast capital expenditure of $175 billion for the 2026 calendar year. The company is scheduled to report its first-quarter results after markets close on Wednesday.
WHO IS ELIGIBLE FOR THE BUYOUTS?
Microsoft said the voluntary buyout programme will be available to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below.
Chief People Officer Amy Coleman outlined the rationale behind the initiative in a staff memo.
“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support. It also gives participating organizations another way to adapt their workforce to changing needs,” Coleman said.
Microsoft described the initiative as a time-limited, voluntary programme that builds on insights gained from an earlier voluntary retirement programme. Eligible employees were expected to receive details within the next few hours, the company said on Monday.
According to Microsoft’s annual filing, the company had 223,000 full-time employees globally as of June 30, 2026.
MICROSOFT’S PREVIOUS JOB CUTS
The latest offer follows an earlier voluntary buyout programme announced by Microsoft this year, which covered about 7% of its US workforce, or approximately 9,000 employees.
In July, the company also announced plans to cut 4,800 jobs, equivalent to about 2.1% of its global workforce, as it restructured its Xbox gaming business and planned to divest up to five studios.
The changes were aimed at improving returns from the gaming division after years of heavy investment.
The latest buyout offer marks another step in Microsoft’s efforts to adjust its workforce while continuing to commit substantial resources to AI development and infrastructure.
MICROSOFT SHARES RISE
Microsoft shares, which had gained around 10% this year, were up about 1% on Monday following the development.
Business Insider was the first to report the latest buyout offer, according to Reuters.
The programme comes ahead of Microsoft’s quarterly earnings announcement, which investors will scrutinise for indications of how its AI investments are translating into business growth and returns.
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