Microsoft offers voluntary buyouts to 60,000 employees

Microsoft has offered voluntary buyouts to approximately 60,000 employees as the technology giant seeks to control expenses and finance its growing

Microsoft has offered voluntary buyouts to approximately 60,000 employees as the technology giant seeks to control expenses and finance its growing investments in artificial intelligence (AI).

The programme covers more than a quarter of the company’s global workforce. Eligible employees across several departments can accept the offer as Microsoft adjusts its staffing needs amid increasing spending on AI infrastructure and technology development.

According to a source familiar with the matter, employees working in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices are among those eligible for the buyouts. However, certain departments, including marketing, commercial business and security, will be excluded from the programme.

Microsoft Chief People Officer Amy Coleman said the initiative would provide eligible staff members who were considering leaving the company with an opportunity to transition out with support. She added that the programme would also give participating business units greater flexibility to adjust their workforces according to changing operational requirements.

The move comes as Microsoft and other major technology companies continue to invest heavily in AI infrastructure, including data centres and advanced chips. These investments have attracted growing attention from investors, who are assessing whether the expected financial returns will justify the substantial costs.

Microsoft has projected capital expenditure of $175 billion for the 2026 calendar year, highlighting the scale of its investment plans. The company was scheduled to announce its first-quarter financial results after the market closed on Wednesday.

According to its annual filing, Microsoft employed 223,000 full-time workers worldwide as of June 30, 2026. The latest buyout programme represents a significant workforce adjustment as the company seeks to balance its long-term technology ambitions with cost management.

Microsoft shares, which had gained around 10% since the start of the year, rose approximately 1% on Monday following the announcement.

The company has already taken steps to reduce its workforce this year. Earlier, it offered voluntary buyouts to approximately 9,000 employees, representing around 7% of its US workforce.

In July, Microsoft also announced plans to eliminate 4,800 positions, equivalent to roughly 2.1% of its global workforce, as part of a restructuring of its Xbox gaming business. The changes included plans to divest up to five game studios as the company sought to improve returns from the division following years of substantial investment.

The latest initiative underscores Microsoft’s efforts to reshape its workforce while maintaining its commitment to AI development. As competition intensifies across the technology sector, the company faces pressure to sustain investment in emerging technologies while ensuring that spending translates into stronger business performance.