Microsoft offers voluntary buyouts to 60,000 employees to cut costs amid AI spending

Microsoft has offered voluntary buyouts to about 60,000 employees, representing more than a quarter of its global workforce, as the technology company seeks to contain costs and fund its expanding investments in artificial intelligence (AI).

The programme is open to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below, Microsoft said on Monday.

The company described it as a time-limited, voluntary programme, with eligible employees expected to receive details within hours of the announcement.

Microsoft had 223,000 full-time employees globally as of June 30, 2026, according to its annual filing.

Employees across several units eligible for buyouts

The offer covers eligible employees across several parts of Microsoft, including its AI experiences, Copilot, finance, human resources, Xbox, and Windows + Devices teams, a source familiar with the matter said, according to Reuters.

However, units including marketing, commercial business and security will be excluded from the programme, the source said.

In a staff memo, Microsoft Chief People Officer Amy Coleman said the offer was designed to support employees considering leaving the company while giving participating teams another option to adjust their workforce to changing business needs.

• “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 said the programme builds on insights gained from an earlier voluntary retirement programme.

The move comes as Microsoft and other technology giants commit hundreds of billions of dollars to AI infrastructure, including data centres and chips, amid investor scrutiny over whether the investments will generate sufficient returns.

Microsoft forecasts $175 billion in capital expenditure

The buyout offer comes as Microsoft increases spending on AI infrastructure, a major investment priority for the company and other technology giants.

• Microsoft has forecast $175 billion in capital expenditure for the 2026 calendar year, reflecting the scale of its investment in infrastructure to support AI development and deployment.
• The spending has drawn attention from investors assessing whether the expected returns from AI will justify the substantial costs involved.

Microsoft is scheduled to report its first-quarter results after markets close on Wednesday, providing an update on its financial performance as it continues to invest heavily in AI.

Microsoft has announced other workforce reductions in 2026

The latest voluntary buyout programme follows other workforce-reduction measures announced by Microsoft this year.

• Earlier in 2026, the company offered voluntary buyouts to about 7% of its US workforce, equivalent to approximately 9,000 employees.
• In July, Microsoft announced plans to cut 4,800 jobs, representing about 2.1% of its global workforce, as it restructured its Xbox gaming business and planned to divest up to five studios.

The restructuring was aimed at improving returns from the gaming division following years of heavy investment.

Global tech giants cut jobs amid AI push

Microsoft’s latest voluntary buyout offer comes amid a wider restructuring trend in the global technology industry, as companies reassess their workforces while increasing investment in artificial intelligence.

• In June 2026, Nairametrics reported that Oracle had shed approximately 21,000 employees globally over the preceding year. The company’s annual report linked the workforce reductions to the adoption and deployment of AI technologies and disclosed $1.8 billion in severance payments and restructuring charges.
• In May 2026, Nairametrics reported that Meta, the parent company of Facebook, had begun notifying employees of planned job cuts affecting approximately 8,000 roles as it restructured its operations and increased investment in AI infrastructure, research and product development.

The scale of the reductions extended beyond individual companies. In July 2026, Nairametrics reported that the 10 largest technology layoff announcements globally had affected more than 76,000 workers, highlighting the scale of workforce reductions across the industry.