Microsoft offers buyouts to 60,000 staff amid soaring AI costs
Microsoft is offering voluntary buyouts to about 60,000 employees in four countries as it seeks to curb costs while investing heavily in artificial intelligence.
- Microsoft is offering voluntary exit packages to approximately 60,000 employees, representing more than a quarter of its global workforce.
- The move is intended to control costs whilst the company significantly increases its investment in artificial intelligence, with a projected capital expenditure of US$175 billion for 2026.
- The voluntary programme is available to staff at level 70 or below in specific departments, including AI, Xbox, and Windows, across the US, UK, Canada, and India.
- This initiative is part of a wider workforce restructuring in 2026, which has already included thousands of job cuts and a smaller buyout scheme earlier in the year.
Microsoft is offering voluntary exit packages to approximately 60,000 employees, representing more than a quarter of its global workforce, as the technology giant seeks to control costs while expanding its investment in artificial intelligence (AI).
The programme, announced on Monday (October 26), covers eligible employees in the United States, the United Kingdom, Canada and India. It offers financial assistance and career planning support to workers who choose to leave the company.
Microsoft employed 223,000 full-time workers worldwide as of June 30, 2026, according to its annual filing.
Which Microsoft employees qualify for buyouts?
The voluntary exit scheme is available to employees at internal level 70 or below within selected business units.
According to a source familiar with the arrangements who spoke to Reuters, eligible departments include AI Experiences, Copilot, finance, human resources, Xbox and Windows + Devices. However, employees in marketing, commercial business and security are excluded from the programme.
Amy Coleman, Microsoft's executive vice-president and chief people officer, explained in an internal memorandum that the initiative was intended to give employees considering careers elsewhere an opportunity to leave with support.
It would also help participating departments adjust their staffing arrangements to meet evolving business requirements.
Microsoft confirmed that the scheme is voluntary and available for a limited period, with eligible employees receiving individual details by email.
The company indicated that its approach draws on lessons from an earlier voluntary retirement programme introduced this year.
Rising AI investment puts pressure on costs
The workforce initiative comes as Microsoft commits substantial resources to expanding its AI infrastructure, including data centres and advanced computing chips.
The company has projected capital expenditure of US$175 billion for the 2026 calendar year, reflecting the scale of its investment in AI technology.
However, the enormous spending commitments have raised questions among investors about whether these investments will generate sufficient returns.
Microsoft is scheduled to release its fiscal first-quarter financial results after US markets close on Wednesday (October 28).
Its shares gained approximately 1% during Monday's trading, taking their gains for the year to around 10%.
Microsoft continues workforce restructuring
The latest offer follows several workforce adjustments undertaken by the company during 2026.
Earlier this year, Microsoft introduced voluntary buyouts for approximately 9,000 employees, equivalent to around 7% of its US workforce.
In July, the company also announced plans to eliminate 4,800 positions, representing about 2.1% of its worldwide workforce.
Those reductions formed part of a broader restructuring that included changes to the Xbox gaming division and plans to divest up to five game development studios following years of substantial investment.
